JSW Group doubles down on auto biz with $115mn fund infusion in Own Brand, eyes $300mn fundraise for MG JV
In July, the Konglomera, led by Sujjan Jindal, pumped $ 115 million to JSW Green Mobility, and showed applications to the Ministry of Corporate Affairs. Company has collected money on optionally convertible debts (OCD) La1,000 Crore for JSW projects introduced by the Jindal family.
The JSW Green Mobility Board approved the publication of OCDs. LaMCA Files, 1,000 CRORE “Use for investment in participation (IES) and/or other group companies,/or other group companies, capital expenditures and general institutional objectives, including debt and interest,” he said.
At the same time, the group is currently looking for the group’s vehicles up to $ 300 million from foreign investors for MG Motor India, which is currently selling the group’s vehicles in the country (the in -house brand has not yet released its first vehicle).
Approximately 14 funds are interested in financing, and according to a person who is directly aware of the issue, whether new investors will be brought to MG Motor, will be taken when a board meeting with SAIC will be held next month.
“Discussions between the two partners continue. A board meeting starts in September and then they will decide. The company is waiting to see when they do not rush,” he said.
A JSW group spokesman said that the group continues to evaluate strategic investment opportunities among the works: ız Even though we do not comment on certain financing structures beyond those who make legal applications, we can verify that all these transactions are in accordance with the valid laws. ”
JSW MG Motor has refused to comment on the Sözcü on India, “Potential donations collection, investors or speculations related to negotiations at the level of board. We will make appropriate explanations in accordance with regulatory requirements”.
In particular, all vehicles under the JSW flag – current and planned – electric vehicles and hybrid vehicles are likely to be.
Although JSW Green Mobility is not yet a model, it develops four, including both passenger vehicles and commercial vehicles. Models are developed by JSW Motors Limited (Passenger Vehicles) and JSW Greentech Limited (commercial vehicles).
The company spokesman refused to comment on specific timeline for launch by saying that they will be shared at the appropriate stage ”. However, according to the previously referenced person, the first of these models is likely to be initiated in the next financial year, and will be removed from a new facility shaped in Chhahatrapati Sambhajinagar in Maharashtra.
The second automobile work of the group is a joint attempt with SAIC, MG Motor India. In March 2024, the Chinese company faced obstacles in investing due to restrictions imposed by the Indian government, and a consortium led by the JSW group received 51% of the company.
The investment in the MG Motor pointed out that JSW Group would enter the automobile industry, but in December, Group President Sajjan Jindal expressed their ambitions to start their home brand.
“Our idea is not to be the police station of a Chinese company to sell products in India.”Financial timesIn December. “We want to produce products in India and sell in India and sell in India.”
According to Puneet Gupta, Director of S&P Global Mobility, JSW Group won critical information with the entrance to MG Motor India.
“For a new player like JSW, most companies are still early in the home race and that market positions may change rapidly for a new player like JSW,“ they can now have more calibrated and reasonable expectations in Sunday, Sales and Snow Speed.
Gupta added that MG Motor’s quick climbing to the number 2 in the home area with the Windsor model proves how fast the house market can be shaken.
The best passenger home seller in India is Tata Motors, which sells more than 16,000 houses at the end of the first quarter of this financial year. MG Motor, Windsor, ZS home and comets, including about 12,000 houses sold.
Analysts say that the adoption of the house in passenger vehicles has not increased rapidly and that the penetration of less than 3% in 25 financial years has increased. That year, more than 107,000 electric passengers were sold.
However, the competition in the segment is increasing. Maruti Suzuki, the country’s largest passenger vehicle company, and other best brands such as Hyundai Motor India, Mahindra & Mahindra and Tata Motors are increasing their presence in the clean automobile segment.
