JSW Group Steps Up Auto Play With MG, Green Mobility

Mumbai-based corporate behemoth JSW Group, known more for its large businesses across steel, energy, cement and infrastructure, is stepping up investments in its nascent mobility business—in both its wholly owned automobile arm JSW Green Mobility and in JSW MG Motor India, a joint venture with China's SAIC.

- Ayaan Kartik

In July, the Sajjan Jindal-led conglomerate pumped in $115 million into JSW Green Mobility, filings with the ministry of corporate affairs showed. The company raised the funds by issuing optionally convertible debentures (OCDs) worth ₹1,000 crore to JSW Projects, which is promoted by the Jindal family.

The board of JSW Green Mobility approved the issuance of OCDs to raise up to ₹1,000 crore "to utilize the proceeds for the purpose of investment in subsidiary(ies) and/or other group companies, capital expenditure and general corporate purposes including repayment of debt and interest," the MCA filing said.

At the same time, the group is seeking up to $300 million from external investors for MG Motor India, which currently sells the group's vehicles in the country (the in-house brand is yet to launch its first vehicle).

Nearly 14 funds have expressed interest in the funding, and a final call on whether to bring in new investors in MG Motor will be taken next month, when a board meeting takes place with SAIC, according to a person directly aware of the matter.