JSW to foray into EV space, MG on list of possible acquisitions, says Sajjan Jindal
JSW is mulling to manufacture batteries in India, but they have not finalised any deals yet and have not decided on a specific product, Group chairman and managing director Sajjan Jindal said
PremiumJSW Group chairman and managing director Sajjan Jindal Wednesday said that the company is mulling to manufacture batteries in India, but they have not finalised any deals yet and have not decided on a specific product, reported CNBC-TV18.
“As part of our renewable industry renewable journey, we are looking at battery, to manufacture batteries in India. That is an area which is a very large area and we feel that we are pretty kind of organised to be in that sector", the JSW Group chairman said at the sidelines of World Entrepreneur of The Year 2023 by Ernst & Young in Monte Carlo.
“It is a sector, which is up our alley, and we understand that business very well. So that is one area we are looking to do," in an interview with the CNBC-TV18 Jindal said.
Jindal said that acquisition is an easier route to enter an area you are not present, MG Motors is on their list of potential acquisitions to foray into the Electric Vehicle Sector in India, and JSW might consider acquiring a stake in the company, if they are willing to sell it.
"...On MG Motor if you are asking me specifically because I don't shy away from difficult questions that is also one of the lists in our list. Could be one of the options if they want to sell but I am not sure as yet," Jindal said.
The JSW Group chairman said electric vehicles will be the primary mode of mobility over the next 6-7 years in the country. Therefore, the company aims to position itself in the sector to seize opportunities as they arise.
"On EVs, we continue to work on that strategy. We haven't yet closed any deal, or haven't yet decided or put our finger on the final product. But we are going to work on it over the next six to eight months, and try and see that we can build the electric vehicle, " Jindal said.
"I am very excited about this opportunity for India because I feel that over the next seven to 10 years, electric vehicles are going to be the major mobility driver in the country. We want to be there when this idea or when this opportunity arises," he added.
"In a steel business, it is not necessarily that we will go for acquisition, because that is okay. But in a new area, whether it is battery or EV or something else, which is not our domain industry, acquisition could be an area. But through acquisition, it also gets a little bit more complicated, because it is not designed to your specs, and you may not really get what you want. So it is both ways."
Jindal further said the company could partner with European, Japanese and Chinese companies. However, he clarified that if India has a hostile relationship with China, his company will not work with Chinese partners.
"In EV, China is way ahead of global competition. So, therefore, China becomes a natural ally, as far as new technology in battery and electric mobility is concerned, so that is one part of the story. On the other side, if we have a hostile relationship between India and China, then obviously we will not work with the Chinese."
"So as a group, we have always taken that position, but to build India, if the technology is available only in China, or that kind of technology, and the cost structure, which the Chinese can provide us and the Europeans cannot, then we have to think twice before we decide. So I think it's a difficult question to answer, but yes, that is, that is my position," he said.
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