The JSW Group, under the leadership of Sajjan Jindal, is currently engaged in discussions regarding the acquisition of Ford Motor Co.’s Chennai facility. This factory has remained dormant since its closure in July of the previous year. JSW’s intention is to repurpose this plant for the manufacturing of electric vehicles (EVs) as part of its strategic entry into the EV market.
Recently, Mr. Jindal announced that JSW Group is actively negotiating with MG Motor India to establish a foothold in the Indian EV sector. Simultaneously, the company is pursuing an independent initiative to develop its own line of EVs. He emphasized the seriousness of JSW’s commitment to the EV industry, stating, “We are highly dedicated to entering the EV market, with MG Motor as our preferred partner. However, if this arrangement does not materialize, we are concurrently progressing with plans to create our own electric vehicles.” Mr. Jindal conveyed these intentions during the B20 Summit India 2023.
The negotiations for the acquisition of the Ford plant commenced several months ago and have now reached an advanced stage. JSW has been actively engaging with both the Tamil Nadu state government and Ford in this regard. Ford had previously decided to cease its operations in India in September 2021, including the discontinuation of vehicle assembly at two of its facilities, one in Sanand and the other in Chennai.
Tata Passenger Electric Mobility successfully acquired the Sanand plant in January for an amount of Rs 725.7 crore. In contrast, the Chennai plant has remained inactive since July 2022. Spanning across 350 acres, this factory possesses an annual production capacity of approximately 200,000 vehicles and 340,000 engines. It is worth noting that the state government is enthusiastic about identifying a new owner capable of revitalizing production operations at this facility.
On Wednesday, the stock price of JSW Holdings saw a positive performance as it closed at Rs. 4,430 per share on the National Stock Exchange (NSE). This represented a notable increase of 1.19% from the previous trading session.