JSW Steel Commits ₹5,845 Crore to a Joint Venture with JFE Steel to Boost Capacity

In a move to strengthen its value-added product portfolio and meet growing domestic demand, JSW Steel Limited has announced a major expansion of its Cold Rolled Grain-Oriented (CRGO) electrical steel production. The decision was conveyed through a disclosure to the National Stock Exchange (NSE) and BSE under SEBI regulations.

Major Capacity Expansion in Nashik

The Board of Directors of JSW Steel has approved an increase in capacity at the Nashik CRGO facility, currently operated by JSW JFE Electrical Steel Nashik Private Limited (J2ESN), from 50,000 tons per annum (TPA) to 250,000 TPA. J2ESN, formerly known as thyssenkrupp Electrical Steel India Private Limited, is one of India’s first CRGO manufacturers. 

This facility was acquired by Jsquare Electrical Steel Nashik Private Limited, a wholly owned subsidiary of JSW JFE Electrical Steel Private Limited (J2ES), which is a 50:50 joint venture between JSW Steel and JFE Steel Corporation of Japan. The expansion at the Nashik facility is expected to cost ₹4,300 crore.

Vijayanagar Facility Expansion and Funding Details

Alongside the Nashik project, J2ES had previously announced a CRGO manufacturing unit at Vijayanagar in Karnataka with an initial capacity of 62,000 TPA. This has now been revised upward to 100,000 TPA with an additional investment of ₹1,545 crore. 

Together, the projects will entail additional capital expenditure of ₹5,845 crore. Of this, equity funding of ₹1,966 crore will be infused equally by JSW Steel and JFE Steel Corporation. As per the approved plan, JSW Steel will contribute up to ₹983 crore towards this expansion via equity infusion into J2ES.

Read More: JSW Energy Signs 230 MW FDRE Power Purchase Agreement with SECI!

JSW Steel Share Price Performance 

As of August 4, 2025, at 1:42 PM JSW Steel share price is trading at ₹1,051.00 per share, reflecting a surge of 2.26%. Over the past month, the stock has surged by 0.92%.

Conclusion

These strategic expansions reflect JSW Steel’s commitment to import substitution and enriching its product mix. With the combined CRGO capacity set to reach 350,000 TPA by FY2028, JSW is poised to play a dominant role in India's electrical steel segment. The investments also highlight the importance of advanced technology and partnerships in strengthening India’s manufacturing capabilities.

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