CCI Approves JSW Group’s Internal Restructuring Involving JSW Steel, JSW Projects and BMM Ispat

The Competition Commission of India (CCI) has approved a proposed combination involving JSW Steel Limited, JSW Projects Limited and BMM Ispat Limited, as part of an internal restructuring of the JSW Group. 

According to the proposal, the restructuring seeks to consolidate the JSW Group’s existing majority interest in BMM into full ownership. JSW Group, through JSW Projects, currently holds 58.47% equity shareholding in BMM. Given below are the details of the CCI approved JSW Internal restructuring. 

BMM Ispat to be Amalgamated Into JSW Steel 

The proposed restructuring involves the amalgamation of BMM into JSW Steel. The stated objective is to enhance operational, financial and organisational efficiencies through economies of scale, resource pooling and rationalisation of capital. BMM is already commercially integrated with the JSW Group’s supply chain through intra-group sales and procurements. 

Business Profile of the Companies 

JSW Steel is listed on the National Stock Exchange of India Limited and BSE Limited. It is engaged in the manufacture and sale of iron and steel products in India and abroad, with operations covering mining, raw material processing, steel production and downstream value-added manufacturing. 

JSW Projects, an unlisted public limited company headquartered in Mumbai, is engaged in manufacturing iron ore pellets, Sponge Iron/DRI and power generation for captive use. According to the release, these outputs are ultimately used in the manufacture of steel and steel products only for JSW Steel. 

BMM Ispat, a public limited company incorporated in India, manufactures semi-finished and long steel products. It operates an approximately 1 MTPA integrated steel manufacturing facility in Karnataka. 

BMM’s Integrated Steel Facility 

BMM’s Karnataka facility undertakes the steelmaking process from ironmaking through to finished long-product rolling, making it an integrated steel manufacturing facility.