Board changes at JSW Group ahead of electric cars, trucks launch next year
Experts earlier noted that the conglomerate’s established presence in segments like energy and steel gives it an advantage to unlock synergies for the automobile business.
Sajjan Jindal-led JSW Group introduced a series of changes to the boards of at least two of its auto companies and changed the holding company of its component business between August and September as the conglomerate gears up to launch cars and trucks next financial year.
In a bid to streamline operations, the chief executives of its passenger vehicle and commercial vehicle businesses left the board of automobile’s business parent company, JSW Green Mobility in August, to focus on their own verticals, Mint’s review of its filings with the ministry of corporate affairs showed.
These are the key changes:
- In place of Sumit Mittal, chief executive officer (CEO) of JSW’s CV business and Ranjan Nayak, CEO of JSW’s PV business, the parent company’s chief of business Rajiv Mehta joined the JSW Green Mobility board of directors. Mehta had joined last year in September after 27 years at Mahindra and Mahindra
- The other directors at the parent company include JSW Holdings chief executive officer Manoj Mohta and Bhushan Prasad, chief financial officer at JSW Projects.
- In another board change, JSW Steel’s vice president of banking, Deepa Yezdegardi, joined the board of JSW Motors in August. Along with these board changes, the company also restructured the operations of its component business JSW AutoComp in September.
- According to one of the company's filings in September, the auto business holding company JSW Green Mobility will control the component business after the controlling firm of JSW AutoComp was changed to JSW Greentech, the CV subsidiary of Green Mobility, from Sajjan Jindal family trust's investment firm Echelon Multiventures Private Limited.
- In June, JSW AutoComp was created by renaming JSW NxGen Charge Ltd, an EV charging infrastructure company that was established in August last year.
Queries sent to JSW Group on Monday on the changes in the auto business went unanswered.
Auto focus
The changes in the boards and the structure of the automobile business come ahead of its planned entry into car- and truck-making next year as also plans for auto components and lithium-ion batteries—a strategy that is as much focused on an inflection in the autos market towards electric vehicles as also integration possibilities with its steel businesses.
Experts earlier noted that the conglomerate’s established presence in segments like energy and steel gives it an advantage to unlock synergies for the automobile business.
“For a newcomer like JSW, this is the right moment to step in, as most companies are still early in the EV race and market positions can shift quickly," Puneet Gupta, Director at S&P Global Mobility, earlier told Mint.
“For JSW Group, it can look to leverage its position in the steel business and work across the end to end supply chain and to increase their presence in automobile components," he explained.
The changes of key management personnel at the group level also come at a time when the conglomerate has readied funding for its automobile businesses.
In September, the Jindal family trust-backed JSW Projects pumped in ₹173 crore into JSW Green Mobility through the equity route, after investing ₹1,000 crore into the parent firm in July.
The company raised the funds by issuing optionally convertible debentures (OCDs) worth ₹1,000 crore to JSW Projects, which is promoted by the Jindal family.
Own brand, JV, components
JSW Group's automobile strategy is divided into two segments: building its own brands and also grow the joint venture with China’s SAIC for running JSW MG Motor India. Its entry into the sector began in 2023 when it announced its investment in MG Motor India.
It has been working on building its own brand which will sell electric and hybrid vehicles. Four models of passenger vehicles and commercial vehicles are planned, according to a person directly in the know.
JSW’s auto business is housed under JSW Green Mobility which is mostly funded through JSW Projects. JSW Green Mobility has two subsidiary companies, JSW Motors and JSW Greentech Ltd.
All the auto businesses are privately held.
Apart from making cars and commercial vehicles, the group is also investing in making components for its vehicles and lithium-ion batteries for its electric vehicles. According to two people in the know, the company has held talks with at least four top Chinese battery firms which includes Gotion, Svolt, Soundon and Cospower, for lithium ion battery technology.
JSW group aims to build 50 GWh of capacity of lithium ion batteries in the country, with a 10GWh gigafactory expected to commence by 2027. The company has also held talks with Japanese and Korean firms for battery tech, with one of its representatives meeting a Japanese battery delegation in July this year in the national capital.
As per Sajjan Jindal, the chairperson of JSW Group, the company’s endeavour is to get into all areas of the automobile business is its attempt to build an entire ecosystem in India.
“Our idea is not to be an outpost of a Chinese company to sell products in India," Jindal told the Financial Times in December. “We want to manufacture the products in India, value-add in India, and sell in India."
topics
