A JSW Steel joint venture with Japan’s JFE Steel Corp will fully acquire Thyssenkrupp Electrical Steel (TKES) India for ₹4,051.40 crore.
The 50:50 joint venture between the two steelmakers is also looking at licensing or transfer of associated technology from ThyssenKrupp, which is included in the deal value.
TKES India manufactures grain-oriented electrical steel, used in the making of transformers and generators, at its Nashik facility.
The plant has been approved by multiple utilities and original equipment manufacturers in India, including state-owned Power Grid Corp of India. Sheets manufactured at the unit are also exported, TKES said on its website.
The unit was started in 1995 by Raymond Ltd as a manufacturer of electrical and carbon steel. In 2000, Thyssenkrupp took a 76% stake in the company and fully acquired it subsequently.
The acquisition will help the JSW-JFE joint venture, Jsquare Electrical Steel Nashik, achieve immediate market access, JSW Steel said in a release. Avendus was the adviser to the deal.
“The market for GOES (grain-oriented electrical sheets) is growing rapidly,” JSW Steel CEO Jayant Acharya said in the release. “This acquisition will enable the consortium of JSW and JFE to manufacture this product in India and supply it to customers in India and globally.”
In 2023, JSW Steel and JFE entered into a joint venture agreement to create a company for the manufacture and sales of cold-rolled, grain-oriented electrical sheets. The two companies had first signed a memorandum of understanding in 2021 to conduct a feasibility study for the manufacture and sale of these sheets.
