Board changes at JSW Group ahead of electric cars, trucks launch next year

To streamline operations, senior executives of the passenger car and commercial vehicle businesses left the board of auto parent JSW Green Mobility in August to focus on their respective industries. MintIt was revealed when the applications made by the Ministry of Corporate Affairs were examined.

These are the important changes:

• Rajiv Mehta, business chief of the parent company, has joined the board of JSW Green Mobility, replacing Sumit Mittal, chief executive officer (CEO) of JSW’s CV business, and Ranjan Nayak, CEO of JSW’s PV business. Mehta joined the team in September last year after 27 years with Mahindra and Mahindra.
• Other executives at the parent company include JSW Holdings CEO Manoj Mohta and JSW Projects chief financial officer Bhushan Prasad.
• In another board reshuffle, JSW Steel’s vice president of banking, Deepa Yezdegardi, joined the board of JSW Motors in August. Alongside these board changes, the company also restructured the operations of its components business JSW AutoComp in September.
• Automotive business holding company JSW Green Mobility will control the component business following the change of control firm of JSW AutoComp from Echelon Multiventures Private Limited, the investment company of the Sajjan Jindal family foundation, to JSW Greentech, a CV subsidiary of Green Mobility, according to one of the company’s filings in September.
• In June, JSW AutoComp was formed by renaming JSW NxGen Charge Ltd, an EV charging infrastructure company established in August last year.

Questions sent to JSW Group on Monday about changes in its automotive business remained unanswered.

autofocus

Changes to the boards and structure of the auto business are ahead of a planned entry into making cars and trucks next year, as well as plans for auto components and lithium-ion batteries; This strategy focuses on a trend towards electric vehicles in the automobile market, as well as on possibilities for integration with the steel works.

Experts have previously stated that the holding’s established presence in sectors such as energy and steel gives it an advantage in revealing synergies for the automotive industry.

“For a newcomer like JSW, this is the right moment to step in as most companies are just at the beginning of the EV race and market positions can change quickly,” S&P Global Mobility Director Puneet Gupta had previously told Mint.

“For JSW Group, it may look to strengthen its position in the steel business, end-to-end working of the supply chain and increase its presence in automobile components,” he explained.

The changes in key management personnel at group level also come at a time when the conglomerate is preparing financing for its automobile business.

Jindal family’s trust-backed JSW Projects came into operation in September ₹173 crore in JSW Green Mobility through equity after investing ₹1,000 crore was deposited in the parent company in July.

The company raised funds by issuing optional convertible debentures (OCDs). ₹1,000 crore to JSW Projects supported by the Jindal family.

Own brand, joint venture, components

JSW Group’s automobile strategy is divided into two parts: building its own brands and also growing the joint venture with China’s SAIC to operate JSW MG Motor India. Its entry into the industry began with the announcement of investing in MG Motor India in 2023.

It is working to create its own brand that will sell electric and hybrid vehicles. Four models consisting of passenger cars and commercial vehicles are planned, according to a person with direct knowledge of the vehicle.

JSW’s automotive business falls under JSW Green Mobility, which is mostly funded through JSW Projects. JSW Green Mobility has two subsidiaries: JSW Motors and JSW Greentech Ltd.

All automotive businesses are privately owned.

In addition to the production of automobiles and commercial vehicles, the group also invests in the production of components for its vehicles and lithium-ion batteries for its electric vehicles. The company has been in talks with at least four Chinese battery companies, including Gotion, Svolt, Soundon and Cospower, for its lithium-ion battery technology, according to two people familiar.

JSW group aims to produce lithium-ion batteries with a capacity of 50 GWh in the country, and a 10 GWh giant factory is expected to be operational by 2027. The company has also held talks with Japanese and Korean firms for battery technology, and one of its representatives met a Japanese battery delegation in the national capital in July this year.

According to Sajjan Jindal, chairman of JSW Group, the company’s drive to enter all areas of the automobile business is an attempt to build a complete ecosystem in India.

“Our idea is not to be an outpost for a Chinese company to sell products in India,” Jindal said. Finance Times In December. “We want to produce the products in India, produce their added value in India and sell them in India.”