JSW Steel , a leading Indian conglomerate, has announced plans to raise ₹7,000 crore through non-convertible debentures (NCDs) to finance its acquisition of AkzoNobel India. This strategic move marks a significant step in JSW's expansion in the Indian market.

NCD Issuance Details

The bonds will have a unique structure with the following key features:

• Tenor: 4 years and 7 months
• Type: Zero-coupon structure
• Effective IRR: 8.50% for investors
• Issuing Entity: JTPM Metal Traders (JSW's investment arm)
• Issue Date: September 29
• Ratings: AA by Care Ratings

Allocation Structure

The NCD issuance is structured as follows:

Acquisition Details

The NCDs are being issued to fund JSW Group's acquisition of AkzoNobel India. Key points of the deal include:

• Maximum consideration for stake purchase: ₹9,400.00 crore
• Total deal value (including open offer): Approximately ₹12,915.00 crore
• Target stake: Up to 75% in AkzoNobel India
• Share Purchase Agreement: Signed on June 27

Financial Backing

The bonds come with strong financial backing, supported by corporate guarantees from the JSW Group. This level of support, combined with the AA rating from Care Ratings, is likely to instill confidence in potential investors.

Strategic Implications

This acquisition represents a significant move for JSW Group, potentially expanding its presence in the paints and coatings sector. AkzoNobel India, a subsidiary of the global paints and coatings company, has a strong presence in the Indian market, making it an attractive target for JSW's diversification strategy.

The successful raising of funds through this NCD issuance will be crucial for JSW Group to complete the acquisition and potentially reshape the competitive landscape in India's paints and coatings industry.

Investors and market watchers will be keenly observing the NCD issuance and the subsequent acquisition process, as it could have significant implications for both JSW Group and the broader industry sector.

JSW Steel , a prominent Indian conglomerate, has announced its foray into the automotive sector with the establishment of JSW Motor, a dedicated automotive vertical separate from its existing JSW-MG Motor India joint venture. The company has set its sights on launching its first electric or plug-in hybrid car in the second quarter of 2026, marking a significant milestone in India's evolving automotive landscape.

Expansion Plans and Production Targets

JSW Motor's CEO, Ranjan Nayak, has outlined an aggressive product roadmap, with plans to introduce 3-4 models in 2026, followed by an additional 3 models in 2027. The company is developing a massive 630-acre automotive hub in Bidkin, Chhatrapati Sambhaji Nagar, Maharashtra. This facility is designed with an initial annual capacity of 500,000 cars, with the potential to scale up to 1 million units once fully operational.

In a bold move that underscores JSW's commitment to the automotive sector, the group has set an ambitious target of achieving a 2 million cars annual capacity within 5-6 years across multiple facilities. This rapid expansion plan positions JSW Motor as a potentially significant player in India's automotive industry.

Investment and Funding

JSW has pledged a substantial investment of $3.00 billion over the next five years to support its automotive venture. The first phase of this initiative requires a capital expenditure of $2.00 billion, which will be funded through a 30:70 equity-debt ratio. Industry insiders anticipate a billion-dollar funding announcement in the coming week, highlighting the scale of JSW's commitment to this new venture.

Technology and Localization

The company is adopting a global approach to technology, with a particular focus on partnering with Chinese firms for electric vehicle technology. JSW Motor aims to achieve a high level of localization from the outset, targeting 70-75% initially, with plans to reach 100% in the future. This strategy aligns with India's push for self-reliance in manufacturing and technology.

Product Focus and Workforce

JSW Motor will exclusively focus on electric, hybrid, and next-generation vehicles, with the first product likely to be an SUV. This strategic decision positions the company at the forefront of the ongoing transition to sustainable mobility solutions in India.

To support this ambitious venture, JSW Motor is in the process of building a substantial workforce. The company plans to hire approximately 1,000-1,200 engineers and 5,000-6,000 workers, creating significant employment opportunities in the automotive sector.

Market Implications

The entry of JSW Group into the automotive sector, particularly with a focus on electric and hybrid vehicles, could potentially reshape the competitive landscape of India's auto industry. As established players and new entrants vie for market share in the rapidly growing electric vehicle segment, JSW Motor's ambitious plans and substantial investments position it as a company to watch in the coming years.

With its first vehicle set to hit the roads in 2026, JSW Motor's progress will be closely monitored by industry observers, potential customers, and competitors alike. The success of this venture could have far-reaching implications for India's automotive industry and its transition towards sustainable mobility solutions.