JSW Steel rose 2.24% to Rs 745.85 after the company said it proposes grain oriented electrical steel sheet manufacturing joint venture in India with JFE Steel.
JSW Steel announced that it has signed a memorandum of understanding to conduct a feasibility study with JFE Steel Corporation, a strategic alliance partner, to establish a grain oriented electrical steel sheet manufacturing and sales joint-venture company in India.The plan is to complete the study within the current 2021 fiscal year and take appropriate steps to set up this joint venture company subject to requisite approvals.
Electrical Steel Products which contain additives such as silicon and aluminium offer excellent magnetic properties including high magnetic flux density and low iron loss.
Grain oriented electrical steel exhibits excellent magnetic properties in a single (rolling) direction making it ideal for the iron cores of power transformers.
Non-grain oriented electrical steel which exhibits magnetic properties that are largely uniform in all directions, has applications in iron cores of generators, motors, appliances, etc.
JSW Steel and JFE Steel had earlier signed a comprehensive strategic collaboration agreement in 2009, under which JFE Steel took an equity stake in JSW Steel, and has provided technical co-operation with regard to automotive steel products.
In the year 2012, JSW and JFE entered into an agreement where JFE has provided technology for the production of non-oriented electrical steel sheets, which has enabled JSW to become India's leading supplier in this field.
Seshagiri Rao, joint MD, JSW Steel & Group CFO said, "This feasibility study for a JV with JFE Steel for manufacturing grain oriented electrical steel sheet in India will strengthen our position as India's leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world. Our partnership with JFE Steel since 2009 has provided us access to cutting-edge technologies and world-class technical expertise to enhance our operational excellence."
In view of the steadily increasing demand for electric power, the growing adoption of renewable energy and the electrification of automobiles, continued growth is forecasted in India and globally for grain-oriented electrical steel sheet primarily used in transformers.
JSW Steel, a flagship company of the JSW Group, is an integrated steel manufacturer.
On a consolidated basis, the steel major's net profit jumped nearly 13 times to Rs 2,681 crore in Q3 FY21 over Q3 FY20. Net sales grew 23.4% Y-o-Y to Rs 21,487 crore during the quarter.
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