Mumbai: JSW Steel is forging a global partnership to expand its manufacturing footprint, teaming up with South Korea’s POSCO for a large-scale steel project in eastern India.
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JV Formation Approved
The company’s board has approved entering into a share subscription and joint venture agreement with POSCO Group. As outlined on page 1, this agreement will convert Saffron Resources Private Limited, currently a wholly owned subsidiary, into a 50:50 joint venture. The partnership structure ensures equal ownership and shared governance, with both parties entitled to appoint an equal number of directors, as detailed in Annexure A on page 2.
Odisha Plant Planned
The joint venture will focus on setting up a greenfield integrated steel plant with a capacity of 6 MTPA in Odisha. Saffron already holds 887 acres of land, including both freehold and leasehold parcels, which will be used for the project. This facility is expected to significantly enhance JSW Steel’s production capacity and support its long-term expansion plans in India.
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Under the agreement, POSCO Group will subscribe to shares in Saffron for a consideration of approximately Rs. 508.8 crore, subject to adjustments, as highlighted on page 2. The transaction does not fall under related party transactions, and POSCO is not linked to JSW Steel’s promoter group, ensuring the deal remains at arm’s length.
Strategic Technology Access
The collaboration is expected to deepen ties between the two steelmakers. According to details on page 3, the partnership will provide JSW Steel access to advanced technology and capabilities in manufacturing high-grade steel, particularly for automotive and specialized applications.
John Cockerill India Wins ₹300 Crore JSW Steel Contract For Galvanizing Line By 2028POSCO, with around 45 MTPA capacity, brings global expertise, while JSW Steel continues to scale toward its target of 50 MTPA capacity in India by FY31. The joint venture positions JSW Steel to combine scale with global expertise, strengthening its competitive edge in high-value steel production and supporting its long-term growth ambitions.
Disclaimer: This article is based solely on the contents of the company’s regulatory filing and does not include independent verification or additional sources.