NEW DELHI: JSW Group has infused ₹3,000 crore into its automobile business and tripled its borrowing limit to ₹15,000 crore, accelerating billionaire Sajjan Jindal’s push to build a fully-owned automobile manufacturing business ahead of its first vehicle launch later this year.
NEW DELHI: JSW Group has infused ₹3,000 crore into its automobile business and tripled its borrowing limit to ₹15,000 crore, accelerating billionaire Sajjan Jindal’s push to build a fully-owned automobile manufacturing business ahead of its first vehicle launch later this year.
The latest capital infusion—the largest single round of promoter funding into the business since it was incorporated in 2023—comes as JSW steps up its push into passenger and commercial vehicles, seeking an independent play beyond its existing joint venture with China’s SAIC Motor, formed in 2024.
The latest capital infusion—the largest single round of promoter funding into the business since it was incorporated in 2023—comes as JSW steps up its push into passenger and commercial vehicles, seeking an independent play beyond its existing joint venture with China’s SAIC Motor, formed in 2024.
Jindal family-owned JSW Green Mobility Ltd, which houses the group’s passenger and commercial vehicle businesses, issued compulsory convertible participating preference shares worth ₹3,000 crore to another promoter-owned entity, JSW Projects, in April, according to a 23 April disclosure made to the Ministry of Corporate Affairs.
The funds will be allocated to the company in tranches, with the first tranche of ₹500 crore already released, filings showed.
Separately, JSW Green Mobility increased its borrowing limit from ₹5,000 crore to ₹15,000 crore, according to a regulatory filing dated 11 May.
The company said the funds would be used for “investment in subsidiary(ies) and/or any other group companies; financing the capital expenditure; general corporate purposes including repayment of existing debt and interest”.
With the latest tranche, the Jindal family has infused ₹5,600 crore into the automobile venture since the company was incorporated.
The funding push comes as JSW prepares to launch its first passenger vehicle in the October-December quarter, while simultaneously building out its commercial vehicle business.
"JSW Steel still remains his (Sajjan Jindal) first love, but JSW Motors is sharply competing for his time. He’s spending a lot of time on JSW Motors,” Jayant Acharya, chief executive officer and joint managing director of JSW Steel, told Mint in an interview earlier this month.
Queries sent to JSW Group remained unanswered till press time.
Auto ambition
The latest promoter infusion also comes as the group steps up external fundraising for the business. Autocar Professional reported last week that JSW Motors, the passenger vehicle subsidiary of JSW Green Mobility, had secured a ₹8,000 crore loan from State Bank of India.
Jindal has positioned the venture as a long-term domestic manufacturing play rather than a vehicle-import business tied to Chinese partners.
“Our idea is not to be an outpost of a Chinese company to sell products in India,” Jindal told the Financial Times in December 2024. “We want to manufacture the products in India, value-add in India, and sell them in India.”
The ownership structure also keeps the automobile business tightly within the promoter family. JSW Green Mobility is owned by Echelon Multiventures Pvt. Ltd, which in turn is owned by the Sajjan Jindal Family Trust.
JSW Green Mobility operates through two subsidiaries—JSW Motors Ltd for the passenger vehicle business and JSW Greentech Ltd for commercial vehicles—with plans to enter the electric and hybrid vehicle segments through both units.
While the company has not officially confirmed it, JSW is said to be partnering with China-based Chery to source vehicle platforms for its upcoming passenger vehicles in India.
With its own passenger and commercial vehicle platform, JSW joins the Tata and Mahindra groups among Indian conglomerates attempting to build scaled domestic automobile businesses.
Over the past two years, both units have built out leadership teams to drive execution. JSW Greentech is led by chief executive Sumit Mittal, while Ranjan Nayak heads strategy at JSW Motors as chief executive.
Independent experts have said the conglomerate’s financial strength could help accelerate its scale-up in a sector where high upfront investments and long gestation periods have historically posed barriers for new entrants.
“The scale of investment indicates an intent to compress the normal growth curve, and build relevance faster in an intensely competitive market,” Vinay Piparsania, founder at MillenStrat Advisory and Research, told Mint. “However, capital alone does not create success; sustained execution, a strong product pipeline and customer acceptance ultimately determine whether speed translates into market share.”