JSW Group Chairman Sajjan Jindal Reportedly Acquiring 48% in China- based Subsidiary MG Motors India

Sajjan Jindal, chairman of JSW Group, is reportedly aiming to buy into MG Motor India, a wholly owned a subsidiary of Shanghai-based Chinese automotive manufacturer SAIC Motor which markets vehicles under the British MG marque, said a report by Economic Times citing people privy with knowledge of the matter.

Mr Jindal will acquire the stakes in MG Motor India, via one of his private company. Notably, JSW group's listed companies — JSW Steel and JSW Energy — will not have any exposure to the automobile venture, the report said.

Gurugram headquartered MG Motor India was setup in the year 2017 and began its sales and manufacturing operations in 2019 with a facility in Halol, Gujarat. In January this year, MG Motor India decided to raise capital for funding its expansion in the country by tapping into Indian capital markets and reducing shareholding of its Shanghai-based parent organization SAIC.

Citing multiple sources aware of ongoing discussions, the ET report further said that Jindal is likely to own 45- 48% of MG Motor India, with dealers and Indian employees owning 5-8%, while SAIC will hold the rest.

Furthermore, the ET report also cited a senior government official, saying that MG Motor India will "become an Indian entity, instead of a Chinese one, with an eventual India listing in the next few years," said a senior government official.

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