JFE Steel Corporation of Japan will invest Rs 157.5 billion to form a joint venture with JSW Steel, according to a regulatory filing. The partnership will include the integrated steel plant of Bhushan Power & Steel Ltd (BPSL), a JSW Steel subsidiary, located in Odisha.
In its BSE filing, JSW Steel confirmed it has entered into a strategic 50:50 joint venture with JFE Steel. The steel business undertaking of BPSL will be transferred to the joint venture through a slump sale, with a cash consideration of Rs 244.83 billion. JFE will invest Rs 157.5 billion in two phases to acquire its half stake.
JSW Steel acquired BPSL in 2021 under the Insolvency and Bankruptcy Code process, transforming it from a distressed 2.75 million tonnes per annum unit into a profitable 4.5 million tonnes per annum operation. The plant currently employs around 25,000 people.
The transaction will enable JSW to monetise part of its holding in BPSL, supporting its broader growth strategy. The company said the partnership will combine JFE’s advanced technological capabilities with JSW Steel’s execution strength, enhancing value creation within the joint venture.
Jayant Acharya, Joint Managing Director and CEO of JSW Steel Ltd, said the collaboration brings together JSW’s expertise in India and JFE’s technological strengths, enabling the venture to scale and produce a wider range of value-added steels. JFE Steel’s President and CEO, Masayuki Hirose, added that the joint operation of an integrated steel plant in India will contribute to the growth of both companies and support the development of India’s steel industry.