JSW Steel Limited (JSWSL), one of India’s largest steel manufacturers, has officially announced the incorporation of its new Joint Venture Company (JV) with the Andhra Pradesh Mineral Development Corporation (APMDC). The company, named APJSW Private Limited, has been registered on August 25, 2025, with its office based in Vijayawada, Andhra Pradesh. This development marks a significant step in strengthening India’s domestic iron ore beneficiation and mining capacity.

Background of the Joint Venture

The decision to form this JV was earlier disclosed on July 18, 2025, when the Board of Directors of JSW Steel approved the proposal. According to the structure, JSW Steel will hold 89% equity stake in the newly formed company, while APMDC will retain the remaining 11% equity stake as a free ride equity. This ensures that the project has a strong partnership between the private and state sectors.

The incorporation of APJSW Private Limited aligns with JSW Steel’s long-term strategic vision of reducing dependency on imported iron ore by building strong local supply chains.

About the Project

The JV has been formed to set up the Konijedu Marlapadu Integrated Iron Ore Project in Andhra Pradesh. The project will focus on mining and beneficiating low-grade iron ore, making it usable for steel production.

The estimated cost of the project is ₹1,075 crore, and once completed, it is expected to deliver 1.3 million tons of iron ore concentrate annually. This beneficiation process will enhance the quality of the raw material, helping JSW Steel meet its increasing demand for iron ore in steelmaking operations.

By replacing imported iron ore with domestically beneficiated ore, JSW Steel anticipates significant cost savings and improved operational efficiency.

Financial and Ownership Structure

At the time of incorporation, JSW Steel made an initial subscription of ₹89,000 towards 8,900 equity shares of face value ₹10 each, giving it 89% ownership of the JV company. APMDC has been allotted 11% of the equity stake as free ride equity.

The company’s authorised capital stands at ₹15,00,000, divided into 1,50,000 equity shares of ₹10 each. As of now, the JV has not commenced its commercial operations but is fully geared to begin groundwork for the project.

Regulatory Compliance and SEBI Disclosure

JSW Steel has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency to its investors. The details of incorporation, ownership structure, and project intent were also provided in compliance with the SEBI Circular No. SEBI/HO/CFD/POD-2/CIR/P/0155 dated November 11, 2024.

It is worth noting that this incorporation does not fall within the purview of a Related Party Transaction at the initial subscription stage. However, with APJSW Private Limited now becoming a Joint Venture Company, it qualifies as a related party entity to JSW Steel. Importantly, the promoter group of JSW Steel does not hold any interest in this new JV.

Strategic Importance for JSW Steel

The incorporation of APJSW Private Limited and the setting up of this iron ore project carry immense strategic importance. India’s steel sector, despite its massive growth, often faces supply challenges in securing high-grade iron ore at competitive prices. By establishing its own beneficiation project, JSW Steel is:

• Ensuring raw material security for its steel plants.

• Reducing reliance on costly imports, which are subject to international price fluctuations.

• Strengthening its competitiveness in both domestic and global steel markets.

• Supporting the Government of India’s Atmanirbhar Bharat (self-reliance) vision by boosting local production capacities.

The Role of APMDC

The Andhra Pradesh Mineral Development Corporation plays a pivotal role in facilitating this project. With its 11% equity stake, APMDC ensures that the State of Andhra Pradesh gains from mineral resource development while also enabling industrial growth in the region.

This collaboration is a classic example of public-private partnership in the mining sector, leveraging the strengths of both corporate efficiency and state resource ownership.

Expected Benefits of the Project

Once operational, the Konijedu Marlapadu Integrated Iron Ore Project will generate multiple benefits for JSW Steel, the state of Andhra Pradesh, and the Indian steel industry at large.

Some of the major benefits include:

• 1.3 million tons per annum of beneficiated iron ore concentrate to be supplied domestically.

• Substantial cost savings for JSW Steel by replacing imported ore.

• Boost to employment and industrial development in Andhra Pradesh.

• Sustainable utilisation of low-grade iron ore, which would otherwise remain underutilised.

• Reduction in forex outflow, since lesser imports will be required.

Broader Industry Perspective

India is the second-largest producer of crude steel in the world, but the sector continues to face challenges with raw material sourcing. Many steel companies depend on importing higher-grade ore, adding to their costs.

By incorporating APJSW Private Limited, JSW Steel has taken a major step in addressing this industry challenge. The project’s success could also serve as a model for other companies looking to set up beneficiation facilities and reduce reliance on imports.

Future Outlook

With incorporation complete, APJSW Private Limited will now move ahead with project planning, government approvals (if required for operations), and execution. Though the project involves a large investment of ₹1,075 crore, the long-term returns in the form of cost efficiency, raw material security, and operational competitiveness make it a promising venture.

JSW Steel has consistently invested in capacity expansions and backward integration projects to strengthen its position in the steel industry. This new JV adds another strong pillar to its integrated business model.

In conclusion, the incorporation of APJSW Private Limited marks a significant milestone for JSW Steel. With 89% ownership and a strategic partnership with APMDC, the ₹1,075 crore Konijedu Marlapadu Iron Ore Project in Andhra Pradesh is set to enhance domestic beneficiation capacity, reduce reliance on imports, and contribute to India’s self-reliant steel industry

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