JSW Group refutes picking up stake in MG Motor, BYD India

JSW Group has refuted reports suggesting the company is planning to pick up stakes in Indian subsidiaries of Chinese automakers MG Motor and BYD, as part of its plans to foray into the electric vehicle business in India. A day earlier, a source of JSW Group told Fortune India that negotiations are on with multiple car markers but nothing has been finalised. MG Motor India also denied to comment on the claims made by the source on Tuesday.

"We confirm that no such proposal as referred to in the captioned news article has been placed for discussion of the Board or any of its Committees," JSW Holdings said in a regulatory filing on Tuesday.

Last month, Seshagiri Rao, the former joint managing director and group CFO, JSW Steel, told Fortune India the company will take a final call on EV investments by August. "The EV project is at the feasibility assessment stage and the promoters will take the final call on investments within six months," Rao said.

"It will cost a lot of money since it's a greenfield project. Besides, we need to acquire technology and platform," he added. The $22 billion conglomerate helmed by Sajjan Jindal is considering building electric vehicles (EVs) as a separate entity, so as not to put the burden on other companies of the JSW Group.  

JSW group had earlier made initial investments and formed a division to launch the EVs, but backed out due to lack of conviction. "We wanted to go ahead earlier, but there was less clarity on the pace of EV adoption. Now technology has changed and there are incentives and support from the government. These are major drivers today to relook at the project," Rao said. According to Rao, in order to foray into the EV segment, JSW Group will have to acquire EV technology and a platform.

According to analysts, the company would have to invest ₹25,000 crore to produce at least one lakh cars in a year.

Sajjan Jindal, earlier told Fortune India that the company will be adding two-three businesses by 2030 to explore more opportunities. “Whatever businesses we do would be capital intensive. That is our core strength. The group will add a minimum of two-three businesses by 2030. As a large business house, it is necessary for us to explore these opportunities,” Jindal said.

JSW Steel, the flagship business of the group, owns and operates a 1 million tonne per annum (MTPA) steel plant at Salem in Tamil Nadu, which manufactures auto-grade, high-value steel and supplies to automobile companies including EV makers. The group is also working on projects to support energy storage solutions, including EV batteries.