VSSL invests ₹1,116 crore to establish state-of-the-art forging unit in Ludhiana

<h1>VSSL invests ₹1,116 crore to establish state-of-the-art forging unit in Ludhiana</h1>

Vardhman Special Steels Limited (VSSL), a leading producer of special steels and pioneer in green steel manufacturing, has marked a major growth milestone with the foundation stone laying ceremony for its new forging facility. The facility is located at Village Mangarh, Kohara, Chandigarh Road, Ludhiana. This expansion reinforces VSSL's commitment to high-value precision manufacturing through a strategic partnership with Aichi Steel Corporation of Japan.

The new unit will be used to manufacture Ring Gears and other precision-forged automotive components for global and domestic markets. These parts are intended for major Original Equipment Manufacturers (OEMs) across India, as well as international clientele in Europe, the ASEAN region, Africa, and Mexico.

VSSL has committed a total investment of ₹ 1,116 crore spanning two phases for this project. The initial phase involves establishing one forging line alongside a Non-Destructive Testing (NDT) line. This first phase is targeted for commissioning by March 2028. A second forging line will be added in the subsequent phase, contingent on customer demand and business growth. The expansion is also expected to create direct employment opportunities for over 300 people, bolstering Punjab's automotive ecosystem.

The project aligns VSSL with the strategy of moving up the automotive value chain by integrating special steel manufacturing with precision forging capabilities. By offering a comprehensive solution to OEMs, the company aims to enhance product quality and supply reliability in domestic and international markets.

Management at both companies emphasized the transformative nature of this collaboration. Mr. Sachit Jain, Chairman & Managing Director of VSSL, stated that the project marks a milestone transition from being solely a leading special steel manufacturer to becoming an integrated supplier of precision-forged components. He noted that by combining metallurgical expertise with Aichi Steel's advanced rolling mill forging technology, the company aims to deliver world-class products at competitive costs.

Mr. Iwao Shimamoto, President of Kitaeru Company, ASC (Aichi Steel Corporation), commented on the partnership, emphasizing a shared commitment to long-term growth and quality. He noted that through the transfer of Aichi Steel's forging know-how, they will establish a manufacturing system founded on operational excellence and safety to support India's automotive industry development.

VSSL has a history as a key player in the special steel market, catering to diverse sectors including Automotive, Engineering, Tractors, Bearings, and Allied Industries. The company’s specialized product suite includes billets, steel bars, rods, and bright bars across various categories of special and alloy steels. VSSL also maintains long-term relationships with major global corporations such as Toyota, Maruti, Hyundai, Hero Moto Corp, Caterpillar, Hino Motors, and Bajaj.

VSSL Stock Price Movement​

Vardhman Special Steels Limited shares today edged higher, settling at ₹297.3 after gaining 0.25%. The stock traded within an intraday range of ₹295.7 to ₹304.95 on the post-market session.