JSW Steel says Japan's JFE invests US$ 0.85 billion in JSW Kalinga, picks up 25% stake
- IBEF
- April 1, 2026
JSW Steel has announced that Japan-based JFE Steel Corporation has invested Rs. 7,875 crore (US$ 0.85 billion) in the company’s subsidiary, JSW Kalinga Steel, acquiring a 25% stake as part of a larger deal. The investment has led to joint control of JSW Kalinga and its wholly owned subsidiary, JSW Sambalpur Steel Limited, because of the allotment of more than 2.26 crore equity shares to JFE Steel on March 30, 2026. This marks a significant milestone in the enhancement of Indo-Japanese collaboration in the industrial sphere, specifically in the steel industry. The deal is also a significant part of JSW Steel’s long-term expansion plans. The deal will not only enhance the capabilities of JSW Steel but also establish India as a preferred global destination for metals investment.
Under the JV arrangement, JFE is expected to invest another Rs. 7,875 crore (US$ 0.85 billion) in the next tranche. This will enable JFE to hold 50% in the equity of JSW Kalinga. This strategic balance in the partnership structure is likely to be beneficial for the growth of the Bhushan Power and Steel (BPSL) assets under the JSW Kalinga facility. The facility is likely to expand significantly in the coming years. The strategic partnership is also in line with the overall growth plans for the steel industry in India. The growth prospects for the industry are likely to remain robust with increasing demand for infrastructure development and expansion in the country. In addition to the expansion of the facility and the overall growth prospects for the steel industry in India, the strategic partnership is likely to be beneficial in providing access to advanced Japanese process standards.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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