JSW gets a good deal on JFE JV

SW Steel Ltd’s agreement with Japan’s JFE Steel Corp. to form a 50:50 joint venture (JV) for ownership of Bhushan Power & Steel Ltd (BPSL) will not only help it deleverage, but also fund its ongoing capital expenditure.

- Ashish Agrawal

In turn, JFE will get a stronger foothold in the fast-growing Indian market amid subdued global opportunities.

It’s worth noting here that JFE bought about 15% stake in JSW Steel in 2010 for ₹4,800 crore, which is now valued at about ₹42,000 crore. JFE’s sales of ¥3.4 trillion (about ₹2 trillion) for the year ending March 2025 was close to JSW Steel's ₹1.7 trillion. However, JFE’s technological advantage cannot be ignored.

JSW Steel acquired BPSL in 2021 via bankruptcy proceedings. The acquisition went through a phase of uncertainty with the Supreme Court declaring it illegal in May 2025, citing various lapses, before reversing its decision in September.

BPSL has a steelmaking capacity of 4.5 million tonnes per annum (mtpa), up from 2.75 mtpa at the time of the acquisition. It could potentially be expanded to 10 mtpa and enter into more advanced steel-making, aided by JFE’s technology.