JSW Group plans Rs 60 K cr capex in FY26; including Rs 15 K cr for EV biz

Remainder to be deployed in core steel and energy operations: Company official

The JSW Group plans to invest Rs 60,000 crore ($7 billion) for capacity expansion in FY26, spending Rs 15,000 crore of the amount on its electric vehicle (EV) business and the rest on core steel and energy operations, said a senior official of the conglomerate.

 

JSW Greentech Ltd, the group’s automotive arm, will set up a greenfield factory in Maharashtra’s Aurangabad (Chhatrapati Sambhaji Nagar) to manufacture electric buses and trucks. The factory will operate independently of the group’s EV partnership with MG Motor, which is owned by SAIC Motor of China. “Total investment in the EV project will exceed Rs 15,000 crore, and we are actively seeking a Chinese partner and an announcement is expected soon,” said the group official, who requested anonymity.

 

 

The Aurangabad factory, spread across 636 acres, is expected to produce 10,000 electric buses and 5,000 electric trucks annually. Its initial funding will comprise Rs 1,487.5 crore in debt and the remainder infused as equity by the JSW Group, which is led by billionaire Sajjan Jindal.

 

Jindal is driving the Aurangabad project and it reflects the group's optimism about India's EV market. JSW’s investment comes amid BYD of China planning to invest $10 billion in Telangana to make electric cars and American EV maker Tesla setting up a dealership in Mumbai. In January, the JSW Group signed an agreement to invest $35 billon in Maharashtra to set up new facilities for EV and lithium-ion battery production, expanding steel manufacturing, and renewable energy projects, including solar modules.

 

JSW will allocate Rs 25,000 crore to its core steel business and Rs 15,000 crore for energy. Group subsidiary JSW Neo Energy, is set to complete its Rs 12,468 crore acquisition of O2 Power in FY26, which began Tuesday. KSK Energy, which was purchased last year for Rs 16,000 crore, is being integrated into JSW’s broader energy portfolio.

 

The group has submitted an offer to buy the Indian arm of Akzo Nobel, which makes paints and performance coatings, to its Dutch parent. American private equity giant Blackstone and Pidilite Industries have made a combined offer for the paint company. The bidders are interested in Akzo Nobel’ India's brand “Dulux” and its nationwide distribution network.

 

India’s steel prices are among the lowest, said the JSW official, adding Indian prices are expected to remain stable as China trims production.