Latest news with #JSWGroup
Mint
9 hours ago
- Automotive
- Mint
JSW, Vedanta, Adani and others explore battery, critical mineral biz with Japan
New Delhi: Representatives from top business houses in India including the JSW Group, the Adani Group, Reliance Industries and Vedanta on Wednesday met with an industry delegation from Japan to explore partnerships in the battery supply chain and critical minerals business. The meeting is part of India's efforts to reduce its dependence on China for sourcing key inputs and technologies required to make batteries that run everything from electric vehicles to consumer electronics and even store green power from intermittent sources like solar and wind. During the discussions with the Japanese delegation, the JSW Group mentioned that it was implementing a three-stage plan to build a battery plant in the country and was looking for suppliers to partner with. This first stage of 20 GWh annual production capacity is expected to become operational during 2025-2027. A second stage of 20 GWh annual capacity is expected by 2028-2030 and a final 20-GWh stage over 2030-2032. When completed, the plant would make enough batteries to produce 1.2 million electric cars. The steel-to-power JSW Group has acquired a minority stake in the Indian unit of China's MG Motor and has plans of expanding further in the automotive sector. Representatives from the Vedanta group said at the conference that the company was looking to enter manufacturing of nickel cathode, a key battery part, and was currently scouting for locations for a plant in India. The aluminium and zinc major was looking for customers, suppliers and technology partners for this venture. Reliance Industries' representatives were also present at the conference. The oil-to-telecom behemoth has ventured into battery manufacturing and is part of a ₹18,100-crore government scheme to incentivize battery making in India. However, its maiden battery plant is current running behind schedule. Vedanta, Adani, Reliance and JSW did not respond to Mint's request for comment. Around 30 companies from Japan's Battery Association of Supply Chain were present during the talks with Indian companies, which also saw participation from firms like Amara Raja Energy, and Ola Electric who are building their own gigafactories. The Japanese delegation consisted of around 30 companies that are part of Japan's Battery Association of Supply Chain, which included Panasonic, Nichia, Asahi Kasei, Sumitomo Metal and Mining, among others. The primary theme of discussions between Indian and Japanese companies was the dependence on China and how the two industries can collaborate to help overcome the supply block. The talks came amid the ongoing rare earth magnets crisis which has worried Indian automakers. China has restricted the exports of rare earth magnets which can lead to production cuts. About 90% of global rare earth magnet processing is controlled by China. Moreover, more than three-fourths production of lithium and graphite is also controlled by China. However, the Indian companies present at the delegation were looking for Japanese companies that can immediately help them with technology transfer or knowhow to get the battery technology right. According to a person aware of the developments, more than 40 Indian businesses took part in the discussions with the Japanese delegation. The government is aiming for 100GWh of lithium ion battery capacity by 2030, by when one estimate suggests country's overall demand will surge to around 127 GWh. Lithium ion batteries are used in electric vehicles as well energy storage systems. Currently, India does not make any lithium ion battery on its own.
The Hindu
2 days ago
- Business
- The Hindu
Nagaland Chief Minister inspects JSW community development initiatives in Ballari
Nagaland Chief Minister Neiphiu Rio undertook a two-day visit to North Karnataka, during which he inspected a range of community development initiatives spearheaded by the JSW Group in and around Toranagallu in Ballari district. During his visit to the OPJ Centre on Saturday, Mr. Rio toured several flagship programmes, including JSW Shakti and Sakhi - North Karnataka's largest women-led BPO initiative - as well as development activities at the Bunkai and Safety Centre. Impressed by the scale and scope of the initiatives, the Chief Minister lauded JSW's commitment to inclusive growth. 'It is commendable that JSW is working tirelessly not just in production and trade, but also for the holistic development of the surrounding communities,' he said. Highlighting the purpose of his visit, Mr. Rio stated that Nagaland, a state rich in culture, art, and heritage, was looking to replicate similar models to accelerate its own development journey. 'Nagaland has made notable progress in literacy, gender equality, and human development. Despite challenges, we are committed to building a prosperous State, and see JSW as a potential partner in achieving this vision,' he added. Peddanna Beedala, zonal head (South India) of JSW Foundation, delivered a comprehensive presentation on the foundation's rural development and social impact programmes. Rahul, chief operating officer of JSW Shakti, also revealed plans to expand the BPO model to Nagaland, sharing details of a strategic blueprint already underway. The delegation included Sunil Ralph, senior vice-president of JSW Steel, senior officials from the JSW CSR team, and representatives from the Ballari District Administration, Police, and Health Department. Mr. Rio's visit is expected to pave the way for collaborative development projects between JSW and the Nagaland government, particularly in areas of skill development, women's empowerment, and rural enterprise.
Mint
3 days ago
- Business
- Mint
With Akzo's acquisition, can JSW paint its way into the big league?
JSW Paints Ltd is set to climb the ladder in the paints sector. With a capacity of less than 0.2 million metric tonnes per annum (MMTPA), JSW currently ranks sixth in the industry. On Friday, it announced the acquisition of a 75% stake in its larger peer, Akzo Nobel India Ltd, for ₹9,000 crore. For the Akzo Nobel group, the divestment is part of a broader strategic portfolio review aimed at focusing efforts on leading positions in key global coatings markets. The deal, which is awaiting regulatory approvals and a mandatory open offer for the remaining 25% held by the public, is expected to close by the end of 2025. This has breathed fresh life into Akzo, which had corrected by more than 25% from its peak in October 2024. The counter rallied by more than 7% on Friday following the announcement. But how will this play out for JSW? Small fish set to make it into the big league Akzo Nobel India is a subsidiary of a Dutch-based multinational company that has been operating in India for more than seven decades. Its Dulux is a household brand in the country. Also Read: For Akzo Nobel India investors, risk of reverse merger with unlisted JSW Paints looms In contrast, the unlisted JSW Paints, backed by the $23 billion cement-to-steel conglomerate JSW Group, joined the paints sector in 2019. It had been piling on losses until FY24. Even in FY24, when it reported ₹2,000 crore in revenues, 60% of that had come from the JSW Group itself. When it comes to production capacity, Akzo is bigger than JSW. With the acquisition of Akzo's 0.25 MMTPA capacity, JSW is set to climb into the big league as one of the top five paint players in India. JSW to become a serious paints player So far, JSW has largely remained a captive paint manufacturer for the JSW Group. Even after five years of operation in the industry, around ₹1,200 crore of its ₹2,000 crore revenues clocked in FY24 was driven by industrial paints supplied to JSW group companies. On the other hand, Akzo Nobel India has five manufacturing plants and two RD&I (research, development, and innovation) centres in the country. It reported more than ₹4,000 crore of revenues in FY25, recording a compound annual growth rate (CAGR) of 14% in sales between FY21 and FY25. The acquisition is expected to triple JSW Paints' business to ₹6,000 crore, and help the combined entity claim about 10% of the industry's revenue market share. Looking beyond scale JSW has been able to manage only about ₹800 crore in annual revenues from clients outside the JSW Group, presumably in decorative paints. This is in contrast to the broader industry, which derives almost three-quarters of its revenues from decorative paints. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? The acquisition of Akzo's business, which is reported to have 45% exposure to decorative paints, can tilt the scale in favour of JSW Paints. The higher share of industrial paints versus the industry can lead to faster growth amid subdued demand for decorative paints. Take Akzo's Q4 FY25 performance, for instance. It registered double-digit growth in its business-to-business vertical, but overall revenue growth was pulled down to 5% due to muted demand in mass and economy decorative paint categories amid rising competition. While rural demand has picked up, urban demand is expected to eventually follow suit. This would give a leg up to decorative paints, thereby weighing on JSW's prospects. But one can hope that by the time the demand environment looks up, with its newfound economies of scale, JSW Paints is able to double down on its focus on distribution, marketing and innovation to carve a niche for itself. Distribution and innovation might JSW is also acquiring a wider reach through the more than 22,000 distribution points of Akzo across the country. These include its experiential stores inaugurated recently in seven states. The acquisition of listed Akzo Nobel also leaves the door open for a reverse merger to take JSW Paints public without the hassle of an initial public offering. While powder coatings and Akzo's international research centre have been excluded from the deal, Akzo has committed to technologically partnering with JSW for India's liquid coatings industry. Akzo's innovation is apparent from its recent product launches, including the Wanda Easy RM Basecoat, a fast-drying ready-mixed basecoat for automotive and speciality coatings, and its climate-friendly Low-E (low cure) range of Interpon powder coatings. This is all at about a 15% discount to Akzo's market price, which was, anyway, fairly valued relative to competitors. Furthermore, Akzo Nobel India has negligible long-term debt, and its working capital loans have been comfortably covered by its earnings. This is to say that, leaving aside the acquisition cost, Akzo's business will not add significant debt to JSW. The acquisition is likely to be funded with debt amounting to ₹4,000 crore. But this will show up on the books of the JSW Group. Industry forces India's paints industry is valued at around ₹60,000-90,000 crore, depending on whether we look at it from the revenue or capacity lens. With rising disposable incomes, sustained revival in rural demand, an imminent recovery in urban demand, and premiumization, the market is expected to grow to ₹1,40,000 crore over the next five years. The government's infrastructure push and initiatives on affordable housing can accelerate this. Also Read: Fevicol maker Pidilite glues itself to paints in Bharat Puri's parting stroke But with the entry of new players in the industry, such as Pidilite and Grasim, and their aggressive pricing, marketing, and distribution strategies, incumbents have lost some market share, and their margins have come under pressure as well. Muted demand and rising prices of raw materials have made matters worse. Large incumbents are allegedly using pressure tactics to prevent their dealer network from engaging with the new players. The Competition Commission of India has also been involved and is looking into allegations of unfair trade practices. The consolidation with JSW's acquisition of Akzo will heat up competition further. But from JSW's point of view, it has strengthened its position in the jungle. Problems that the acquisition won't solve Asian Paints leads the market by a huge margin with a claim on more than 50% of the market share. Berger Paints is a distant second with less than 20% share. Grasim and Kansai Nerolac rank next with 6-12% share each. Post-acquisition, JSW Paints will gain a significant lead with around 10% share of the market. But with a bulk of the market still controlled by Asian Paints, the industry can be expected to continue struggling under competitive pressure despite any consolidation among the smaller players. Of course, similar to what has been seen in the cement sector, more consolidation can be on the horizon for paints as well. Furthermore, aggressive investments planned by smaller incumbents can tilt the power balance away from Asian Paints. Whether JSW Paints is able to keep up amid such aggressive organic and inorganic expansion will have to be seen. Meanwhile, how their nascent profitability evolves will be a key monitorable. If JSW has to carve its niche, it will need to focus on marketing, distribution, and innovation, and closely follow the inorganic expansion. For more such analysis, read Profit Pulse. Ananya Roy is the founder of Credibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
Time of India
6 days ago
- Business
- Time of India
JSW plans Rs 4,000 crore debt sale to fund Akzo Nobel acquisition deal
Indian conglomerate JSW Group is in talks with global lenders to raise about 40 billion rupees ($468 million) to partly fund its purchase of Akzo Nobel NV 's local business, according to people familiar with the matter. Foreign banks including Barclays Plc, Mitsubishi UFJ Financial Group Inc. and Standard Chartered Bank Plc will arrange the debt, which is expected to be denominated in rupees, said the people, who asked not to be identified because the information is confidential. JSW Group has also reached out to international private credit funds including Ares Management Corp, Cerberus Capital Management and Farallon Capital Management though nothing has been finalized yet, said the people. Morgan Stanley, a bank on the acquistion, will also be involved in the borrowing, two of the people said. Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions and subtitles off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More JSW Group agreed to buy up to 75% of Akzo Nobel NV's Indian business in a deal valued at about $1.6 billion, including debt, as the Indian conglomerate seeks to expand its presence in areas such as paints. A rupee bond deal would be a boon for supply in India's booming local debt market, which year to date has seen issuance of 6.5 trillion rupees ($76 billion), up 28.4% from a year ago, according to data compiled by Bloomberg. Live Events MORE STORIES FOR YOU ✕ JSW Paints inks deal to buy Dulux-owner Akzo Nobel for nearly Rs 9,000 cr, fresh coat of rivalry in over $10 bn market Akzo Nobel India shares surge 11% as JSW Paints to become new owner in Rs 9,400 crore deal « Back to recommendation stories I don't want to see these stories because They are not relevant to me They disrupt the reading flow Others SUBMIT Acquisition financing has been a bright spot for global lenders in India, particularly private credit funds. In the second half of 2024, private credit deals showed a 'strong focus' on such deals, global consulting firm Ernst & Young wrote in a report. The planned debt could be raised in multiple tranches and levels, and the tenor could be up to three years, said the people. The terms and currency of the deal are not yet final and could still change, they added. Ares and Standard Chartered declined to comment. JSW Group, Barclays, Mitsubishi and other lenders did not immediately respond to requests for comment.
Bloomberg
6 days ago
- Business
- Bloomberg
India's JSW Plans $468 Million Debt Sale to Fund Akzo Deal
Indian conglomerate JSW Group is in talks with global lenders to raise about 40 billion rupees ($468 million) to partly fund its purchase of Akzo Nobel NV 's local business, according to people familiar with the matter. Foreign banks including Barclays Plc, Mitsubishi UFJ Financial Group Inc. and Standard Chartered Bank Plc will arrange the debt, which is expected to be denominated in rupees, said the people, who asked not to be identified because the information is confidential.
