JSW Steel, Japan’s JFE to Invest ₹5,845 Cr to Ramp Up Electrical Steel Output in India

In a major push to strengthen India’s domestic manufacturing of energy-efficient steel, JSW Steel and Japan’s JFE Steel will jointly invest ₹5,845 crore to expand cold rolled grain-oriented (CRGO) electrical steel production across two key locations Nashik and Vijayanagar.

The companies, in a 50:50 joint venture, will infuse ₹1,966 crore through equity for the expansion, according to a regulatory filing by JSW Steel on Monday. The balance funding details have not yet been disclosed.

The expansion will be executed in phases starting in fiscal 2028, aimed at meeting the rising demand for CRGO steel, a critical component in energy infrastructure, particularly in transformers and other electrical equipment. The material is known for reducing energy losses and cutting carbon emissions.

At the Nashik plant, production capacity will be scaled up fivefold — from 50,000 tonnes per annum (TPA) to 250,000 TPA — backed by an investment of ₹4,300 crore. JSW JFE acquired this plant from Germany’s Thyssenkrupp earlier this year for ₹4,159 crore.

Moreover, the Vijayanagar plant in Karnataka, earlier envisaged as a 62,000 TPA facility, is now proposed for an expansion to 100,000 TPA with an investment of ₹1,545 crores.

The development indicates an increasing focus on localisation of advanced electrical steel manufacturing, a market where this product was earlier entirely sourced from global imports. Thus, with the energy transition and upgrading of power infrastructure in full steam in India, the demand for CRGO steel is expected to substantially increase.

The joint venture, formed in 2012, brings together the local industry experience of JSW and the technical expertise of JFE. The latest expansion will significantly strengthen their footprint in high-grade steel production and reduce India’s reliance on imported electrical steel.