JFE Steel to Invest ₹15,750 Crore in Joint Venture With JSW Steel
Investment will support Odisha steel plant, boost production capacity, and strengthen India–Japan industrial partnership
Bhubaneswar: Japan’s JFE Steel Corporation will invest ₹15,750 crore to form a major joint venture (JV) with Sajjan Jindal–led JSW Steel. The investment will be used to jointly operate the Bhushan Power & Steel Ltd (BPSL) integrated steel plant located in Odisha, according to a regulatory filing by JSW Steel.
JSW Steel announced in a filing to the Bombay Stock Exchange that it has entered into a strategic partnership with JFE Steel. Under this agreement, the steel business of BPSL will be transferred to a new 50:50 joint venture through a slump sale. The total value of the transaction is ₹24,483 crore in cash.
JFE Steel will invest ₹15,750 crore in two phases to acquire its 50 percent ownership in the joint venture.
JSW Steel acquired BPSL in 2021 through the Insolvency and Bankruptcy Code (IBC) process. At the time of takeover, BPSL had a production capacity of only 2.75 million tonnes per annum (MTPA) and was facing financial distress.
Since the acquisition, JSW has transformed the plant into a profitable operation and expanded its capacity to 4.5 MTPA. Today, the Odisha plant employs nearly 25,000 people and plays a key role in JSW’s steel production network.
Through this deal, JSW Steel will monetise part of its stake in BPSL, which will help the company accelerate its long-term expansion plans. At the same time, the partnership with JFE Steel will bring advanced Japanese technology and expertise to the Odisha plant.
JSW Steel Joint Managing Director and CEO Jayant Acharya said the partnership combines the strengths of both companies.
“Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths. The joint venture will help produce a range of value-added steels and support future growth,” he said.
JSW confirmed it will continue to remain invested in the joint venture and contribute to future value creation.
JFE Steel President and CEO Masayuki Hirose said the partnership will help both companies grow and also support India’s steel industry.
“I am confident that by leveraging our technological strengths and jointly operating an integrated steel plant in India with JSW, we will not only contribute to the growth of both companies but also make a significant contribution to the development of the Indian steel industry,” Hirose said.
The Odisha steel plant is expected to benefit from JFE’s advanced manufacturing technologies, improving quality and enabling the production of more specialised steel grades. This is likely to strengthen the plant’s competitiveness and support supply to sectors such as automobiles, infrastructure, and machinery.
The large-scale investment will also boost Odisha’s industrial growth, create more skilled jobs, and enhance India’s position in the global steel market.
