Jsquare Electrical Steel Nashik Completes Acquisition of tkES India for Rs 4,158.6 Crore

Jsquare Electrical Steel Nashik Pvt Ltd has acquired a full stake in thyssenkrupp Electrical Steel India Pvt Ltd (tkES India) for Rs 4,158.6 crore. This acquisition was confirmed in an exchange filing on Thursday. Jsquare is a subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), a joint venture between JSW Steel and Japan's JFE Steel Corporation.

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The acquisition includes the transfer of a technology package from the thyssenkrupp group. tkES India, based in Nashik, Maharashtra, is among the first Indian manufacturers of grain-oriented electrical steel (GOES). This strategic move allows J2ES to quickly access the market and establish a comprehensive system for GOES production and sales in India.

Strategic Expansion in Electrical Steel Market

In February 2024, JFE Steel and JSW formed J2ES to develop an integrated greenfield project for GOES manufacturing in India by 2027. The recent acquisition aligns with this goal, providing immediate market entry and operational capabilities. The transaction's total purchase consideration, including closing adjustments, amounts to Rs 4,158.6 crore.

JSW Steel Joint Managing Director & CEO Jayant Acharya stated, "We have completed this transaction which will set us up for a leadership position in the rapidly growing GOES market in India." This acquisition supports JSW's strategy to enhance its portfolio with value-added products and contributes to India's self-reliance.

The joint venture between JSW Steel and JFE Steel Corporation aims to strengthen its presence in the electrical steel sector through this acquisition. By acquiring tkES India, J2ES can leverage existing facilities and technology to boost production efficiency and market reach.

This acquisition marks a significant step for J2ES as it seeks to expand its footprint in the Indian electrical steel market. The integration of tkES India's operations will enable J2ES to streamline its manufacturing processes and enhance its product offerings.

With this acquisition, J2ES is poised to become a key player in India's GOES market. The collaboration between JSW Steel and JFE Steel Corporation underscores their commitment to advancing India's industrial capabilities and meeting growing domestic demand.