Vardhman Special Steels Ltd announces Rs. 475 Crore Investment to enter Steel Forgings

Vardhman Special Steels Limited (BSE: 534392. NSE: VSSL), Amongst India's leading producers of special steels and a pioneer in green steel manufacturing, catering to diverse sectors of automotive, engineering, tractor, bearing & allied industries, has approved an investment of Rs. 475 crore to set up a new Steel forging and machining manufacturing facility in Ludhiana, marking a significant expansion into value added automotive components with technical know-how and expertise from Aichi Steel Corporation.

The proposed forging unit marks a strategic forward integration of Vardhman Special Steels' existing steelmaking operations. This expansion enables the Company to offer a comprehensive, one stop solution to automotive OEMs, spanning steel production through to forged components. The integrated operating structure will deliver higher quality consistency, improved supply reliability and closer customer alignment, supported by Japanese quality standards across the manufacturing value chain.

The investment is aimed at strengthening the Company's position within the automotive supply chain by expanding its value added product portfolio and increasing participation across critical automotive components. The new facility is expected to deepen customer relationships and support long-term growth opportunities.

Commenting on the expansion, Mr Sachit Jain, Chairman & Managing Director, Vardhman Special Steels Ltd. said, "Over the years, we have consistently evaluated venturing into forgings with our partner Aichi Steel Corporation who is having the largest Forging Capacity in Automotive domain with unique know-how and technologies in Japan. With the rising customer demand, market visibility and our internal capabilities now aligned, | am happy to share that we are going ahead with the setting up of a forging and machining unit in Ludhiana itself. Our entry into steel forgings is a natural progression of our steelmaking operations and positions us as a more comprehensive partner to automotive OEMs. This investment strengthens our value proposition and accelerates our next phase of growth by expanding into higher value-added segments."

Shares of Vardhman Special Steels Limited was last trading in BSE at Rs. 292.05 as compared to the previous close of Rs. 296.25. The total number of shares traded during the day was 4760 in over 251 trades.

The stock hit an intraday high of Rs. 303.35 and intraday low of 290.00. The net turnover during the day was Rs. 1419250.00.

Source : Equity Bulls

Keywords

VardhmanSpecialSteels INE050M01012 VSSL Investment SteelForgings