JSW Steel and JFE Steel Join Hands for ₹5,845 Crore Expansion in Grain Oriented Electrical Steel

JSW Steel Limited has approved a massive investment of ₹5,845 crore in partnership with Japan’s JFE Steel Corporation to significantly expand Cold Rolled Grain-Oriented (CRGO) electrical steel production in India. The expansion aims to strengthen India’s electrical steel manufacturing capabilities, reduce import dependence, and cater to the rising domestic demand for high-quality electrical steel.

Major Capacity Boost at Nashik Plant

The Board of Directors has cleared a proposal to increase capacity at the Nashik CRGO facility from 50,000 tons per annum (TPA) to 250,000 TPA.
This facility is run by JSW JFE Electrical Steel Nashik Private Limited (J2ESN) — formerly known as thyssenkrupp Electrical Steel India Private Limited.

• Investment: ₹4,300 crore
• Ownership: J2ESN is part of a 50:50 joint venture between JSW Steel and JFE Steel.
• Significance: Nashik will emerge as one of India’s largest CRGO steel manufacturing hubs.

Vijayanagar Facility Expansion

JSW JFE Electrical Steel Private Limited (J2ES) is also scaling up its Vijayanagar, Karnataka CRGO unit,

• Previous capacity: 62,000 TPA
• Revised capacity: 100,000 TPA
• Additional investment: ₹1,545 crore

This expansion will ensure balanced geographic distribution of CRGO production in India, supporting industrial demand across regions.

Why CRGO Steel is Critical

Cold Rolled Grain-Oriented (CRGO) steel is an essential material for power transformers and electrical equipment. India currently imports most of its CRGO requirements, leading to high foreign exchange outflow. By ramping up domestic capacity,  India can reduce import dependence. Support power sector expansion. Cater to the fast-growing renewable energy and grid infrastructure market.

Strategic Importance for India’s Steel Industry

JSW Steel’s investment aligns with the Make in India initiative, ensuring high-grade CRGO steel is manufactured locally. It also reflects a deepening India-Japan industrial partnership, leveraging JFE Steel’s technological expertise and JSW Steel’s operational scale.