JSW Steel-JFE to invest ₹5,845 cr to expand electrical steel capacity to 350,000 TPA in India
Mumbai: JSW Steel Ltd, in strategic partnership with Japan’s JFE Steel Corporation, on Monday announced a major expansion in the manufacturing of grain-oriented electrical steel (GOES) through their joint ventures in Vijayanagar (Karnataka) and Nashik (Maharashtra).
The companies will scale up India’s GOES capacity to 350,000 tonnes per annum, with a joint investment of ₹5,845 crore, according to a Moneycontrol report.
Of this, ₹1,545 crore will go toward enhancing capacity at the Vijayanagar plant, while the step-down JV entity will invest ₹4,300 crore in expanding the Nashik facility.
The Nashik unit, now operating under JSW JFE Electrical Steel Nashik Pvt Ltd (J2ESN)—formerly thyssenkrupp Electrical Steel India Pvt Ltd—was among the first in India to manufacture cold rolled grain-oriented (CRGO) electrical steel.
It currently has a capacity of 50,000 TPA, which will be expanded to 250,000 TPA, with phased commissioning planned from FY2028.
Meanwhile, the Vijayanagar facility, originally planned with a 62,000 TPA capacity and investment of ₹5,557 crore, will now be upgraded to 100,000 TPA, requiring an additional ₹1,545 crore investment.
Both sites are expected to be commissioned by FY2028.
The total investment in CRGO and electrical steel capacity, including earlier announced commitments and acquisitions, will now amount to ₹15,560 crore, JSW Steel noted in its stock exchange filing.
“This expansion reinforces JSW Steel’s commitment to building self-reliance in India's specialty steel sector and supporting national programs such as Make in India and Atmanirbhar Bharat,” the company said, adding that the move also aligns with the rising demand for high-efficiency electrical steel in sectors like renewable energy, energy transition, e-mobility, AI data centres, and more.
Jayant Acharya, Joint Managing Director & CEO, JSW Steel, said: “India’s green energy transformation, decarbonisation and digital infrastructure development are triggering large demand for high-grade electrical steel. Our GOES investment is a critical step in enabling import substitution, supporting India’s energy transition goals, and delivering high-efficiency electrical steel solutions to the domestic and global markets.”
“This investment with our long-standing partner JFE Steel reaffirms our commitment to building strategic and future-ready steel capabilities that serve both national and global priorities,” he added.
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