JSW Steel & Japan’s JFE Corp. to Invest Rs. 5,845 Cr. in Electrical Steel Capacity in India
JSW Steel Limited has announced a partnership with Japan’s JFE Steel Corporation to expand Grain-Oriented Electrical Steel (GOES) manufacturing capacity in India. As per JSW Steel’s official stock exchange filing dated 4th August 2025, both companies will jointly invest Rs. 5,845 crore for this expansion.
JSW Steel’s Expansion Plans in Nashik and Vijayanagar
As part of this expansion, JSW Steel will augment Grain-Oriented Electrical Steel manufacturing capacity at its Nashik plant in Maharashtra, and also establish a new manufacturing facility in Vijayanagar, Karnataka.
The expansion at the Nashik plant will be carried out by JSW JFE Electrical Steel Nashik Private Limited, a joint venture between JSW Steel and JFE Corporation. The JV was founded in 2024.
Meanwhile, the new plant at Vijayanagar will be developed by a separate joint venture, namely, JSW JFE Electrical Steel Private Limited.
JSW Steel mentioned in its stock filing that with this expansion, the company targets to ‘make India a global hub for high-grade electrical steel’.
JSW and JFE Electrical Steel’s Production Capacity in Nashik & Vijayanagar
In Nashik, JSW JFE Electrical Steel Nashik Pvt. Ltd. will increase its manufacturing capacity from the current 50,000 Tonnes Per Annum (TPA) to 2,50,000 TPA. This expansion is expected to be completed by FY28. Notably, the factory was previously operated by Thyssenkrupp Electrical Steel India Pvt. Ltd. In January 2025, Thyssenkrupp Electrical Steel India was acquired by JSW Steel.
Moreover, in Vijayanagar, JSW JFE Electrical Steel is setting up a new plant for the production of Grain-Oriented Electrical Steel. JSW Steel announced the development of this plant in February 2024. Earlier, the company planned a production capacity of 62,000 TPA at this plant, however, now JSW steel mentioned in its stock filing that this plant will have a manufacturing capacity of 1,00,000 TPA.
With these expansions, JSW Steel’s total GOES manufacturing capacity in India will rise to 3,50,000 TPA. These expansions will strengthen ‘JSW JFE’s position as India’s leading integrated GOES producer’.
India’s Electrical Steel Demand Sees Strong Growth
The demand for electrical steel in India is witnessing robust growth, fueled by ongoing infrastructure development, the adoption of energy-efficient technologies, and rapid expansion in both the automotive and renewable energy sectors.
According to a report by TechSCI Research, India’s electrical steel market is valued at USD 2.25 billion in 2025 and is projected to grow to USD 3.83 billion by 2031, at a Compound Annual Growth Rate (CAGR) of 9.10%.
Mentioning the increase in demand of electrical Steel in India, Mr. Jayant Acharya, Joint Managing Director & CEO of JSW Steel, said, “Our [Grain-Oriented Electrical Steel] GOES investment is a critical step in enabling import substitution, supporting India’s energy transition goals, and delivering high-efficiency electrical steel solutions to the domestic and global markets”.
About JSW Steel Ltd.: JSW Steel Ltd. is the flagship company of the JSW Group. The company has manufacturing facilities in India and the US. In FY-25, the company reported a consolidated top line of Rs. 1,68,824 crore.
