JSW Steel-JFE Steel JV Acquires TKES India for ₹4k Crore: Boosting Electrical Steel Output for Growing GOES Market

A joint venture between JSW Steel and Japan’s JFE Steel Corp will fully acquire Thyssenkrupp Electrical Steel (TKES) India for ₹4,051.40 crore. This 50:50 partnership between the two steel companies also includes the licensing or transfer of technology from Thyssenkrupp as part of the deal.

TKES India, located in Nashik, produces grain-oriented electrical steel, which is mainly used in making transformers and generators. The plant has approvals from several utilities and manufacturers in India, including Power Grid Corp of India. TKES also exports the steel sheets it produces.

The plant was initially set up by Raymond Ltd in 1995, and Thyssenkrupp took a 76% stake in the company in 2000, eventually becoming the full owner.

According to JSW Steel, this acquisition will give the joint venture immediate access to the market. The joint venture, called Jsquare Electrical Steel Nashik, will be able to produce and supply electrical steel in India and internationally. JSW Steel CEO Jayant Acharya said that the demand for grain-oriented electrical sheets is growing quickly, and this acquisition will help JSW and JFE meet this demand both in India and globally.

In 2023, JSW Steel and JFE officially formed their joint venture to manufacture and sell cold-rolled, grain-oriented electrical sheets. The two companies first agreed to explore this possibility in 2021, and the acquisition of TKES India is a major step forward in their plans.