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JSW Steel is in advanced talks to sell half of its stake in Bhushan Power & Steel to Japan-based JFE Steel.
Background: JFE Steel has a long-term relationship with JSW. The former had invested ₹15,000 crore in JSW in 2010 to acquire a 15% stake in the company.
The two companies have jointly taken several initiatives and made investments in the electrical steel segment.
FYI: in 2019, JSW Steel acquired BPSL after the latter signed for bankruptcy in 2017. However, the deal was finalised only in 2025 after Supreme Court approval.
Why this matters: if finalised, the deal will inject ₹15,000 crore into JSW Steel, supporting its goal of reaching a 50-million-tonne production capacity.
JFE Steel on the other hand will gain a stronger foothold in the Indian market and scale up capacity to 10 million tonnes.
With its long-term partnership with JSW, JFE will also get to leverage its expertise in manufacturing high-performance steel for automobiles, construction, and energy sectors in the Indian market.
Zoom out: India’s steel market is projected to reach $230 billion by 2030, growing at an annual rate of 9.18%. As infrastructure demand rises, collaborations like JSW and JFE’s will play a key role in meeting the country’s industrial needs.
Mordor Intelligence
