JSW Steel to Invest Rs 750 Cr in JSW Paints
JSW Steel plans to invest around Rs 750 crore in JSW Paints in tranches over the next three years. “In the first tranche of the strategic investment, the company will invest around Rs 300 crore and subscribe to equity shares equivalent to approximately 6.88% of the issued and paid-up equity capital of JSW Paints during Q2 of FY 22,” JSW Steel said while announcing its June quarter earnings. JSW Steel has been investing and expanding capacities in its coated business both organically as well as inorganically. Additional colour coating lines are being commissioned at Vasind, Kalmeshwar, Vijayanagar and Srinagar. “The paint companies in India have limited expansion plans in coil coatings that are consumed by the company’s colour coating business. It is important for JSW Steel to strategically secure coil coating supplies for colour coated steel, which is a profitable downstream value-added product,” the company said. Many of the paint retailers can be potential retailers for JSW Steel coated products enhancing the retail footprint for steel products. SW Paints approached the company for an equity investment…Overall, this investment will be a very good strategic fit for JSW Steel - from jointly innovating, securing supplies, to having a strong competitive advantage. JSW Steel announced a CAPEX plan of Rs 25,115 crore for the next three years and it recently acquired Asian Colour Coated Ispat in October 2020 for Rs 1,550 crore.The CAPEX will help us set up a state-of-the-art colour-coated facility in Jammu & Kashmir to support local demand and development in the state. JSW Paints, located in western India, has set up an R&D centre at Vasind and has been able to work closely with the JSW coated team to develop and introduce new and innovative products.
Tags : ALLIED JSW Steel JSW Paints invest