On December 10, 2024, the Competition Commission of India granted approval for the acquisition of Thyssenkrupp Electrical Steel India Private Limited by Jsquare Electrical Steel Nashik Private Limited. This move marks a significant step in the development of India’s electrical steel industry and aligns with the growing demand for grain-oriented electrical steel, an essential material used in the manufacturing of electrical transformers and other power equipment. The transaction involves Jsquare acquiring 100% of the share capital of Thyssenkrupp India, solidifying the position of the acquiring entity in the competitive steel market.
Jsquare is a newly incorporated company and a wholly owned subsidiary of JSW JFE Electrical Steel Private Limited, J2ES, a joint venture formed in 2023 between two industry giants, JSW Steel Limited and JFE Steel Corporation. J2ES is set to begin manufacturing GOES in India by 2027, signaling the company’s long-term commitment to the electrical steel sector. While J2ES currently does not have any commercial operations, the acquisition of Thyssenkrupp India by Jsquare will allow J2ES to lay the foundation for its planned manufacturing operations in the country. The move also strengthens the ties between JSW Group, a major player in sectors such as steel, energy, automotive, and infrastructure, and JFE Steel, a global leader in steel production.
Thyssenkrupp India, on the other hand, has been a significant player in the GOES market in India. The company manufactures and sells high-quality GOES, which is crucial in the production of electrical transformers and other power-related equipment. The approval of the acquisition allows Jsquare to leverage Thyssenkrupp India’s existing operations, customer base, and manufacturing expertise to rapidly scale its own production capabilities. This acquisition is expected to provide Jsquare with an immediate foothold in the highly competitive electrical steel market, enabling the company to cater to the growing demand for high-performance materials in India’s rapidly expanding electrical infrastructure sector.
The acquisition also presents strategic advantages for both parties involved. For Jsquare, it provides access to Thyssenkrupp India’s established market presence and production facilities, which will be instrumental in accelerating its entry into the Indian market. For Thyssenkrupp India, the deal opens the door to new opportunities within the JSW Group’s extensive network, as well as potential growth opportunities stemming from the joint venture’s planned expansion into the Indian GOES market. This is particularly relevant as India continues to invest heavily in its power infrastructure, which is expected to drive significant demand for high-quality electrical steel in the coming years.
