Vardhman Special Steels Limited company name laid the foundation stone for a state-of-the-art forging facility in Ludhiana, Punjab, on July 27, 2026, marking a strategic expansion into high-value precision-forged automotive components. The company committed a total investment of ₹1,116 crore across two phases for the project located at Village Mangarh, Kohara, Chandigarh Road. This move represents VSSL’s forward integration strategy, leveraging a long-standing partnership with Aichi Steel Corporation, Japan, to manufacture Ring Gears and other precision parts for leading Original Equipment Manufacturers (OEMs) in India and international markets including Europe, ASEAN, Africa, and Mexico.

The ceremony was attended by S. Bhagwant Singh Mann, Chief Minister of Punjab, underscoring the state government’s support for advanced manufacturing initiatives. VSSL disclosed the development pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The expansion aligns with the Government of India’s vision for strengthening domestic manufacturing capabilities and promoting technology transfer. By integrating special steel manufacturing with precision forging, VSSL aims to enhance supply reliability and product quality for global automotive clients.

Project Phasing and Timeline

The ₹1,116 crore investment will be executed in two phases based on customer demand and business growth. The first phase involves establishing one forging line along with a Non-Destructive Testing (NDT) line. Management has targeted the commissioning of this initial forging line by March 2028. A second forging line will be added in the subsequent phase. The total project is expected to generate direct employment for more than 300 people, further strengthening Punjab’s automotive manufacturing ecosystem.

Strategic Partnership and Technology Transfer

The facility leverages Aichi Steel’s advanced rolling mill forging technology and manufacturing expertise. This collaboration allows VSSL to offer comprehensive solutions to automotive OEMs, moving up the value chain from raw special steel production to finished precision components. Key customers served by VSSL include Toyota, Maruti, Hyundai, Hero Moto Corp, Caterpillar, Hino Motors, and Bajaj. The company also caters to international markets in Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam, and Japan.

Sachit Jain, Chairman & Managing Director of Vardhman Special Steels Limited, stated that the project transforms VSSL into an integrated supplier of special steels and precision-forged components. He emphasized that combining metallurgical expertise with Aichi Steel’s technology aims to deliver world-class products at globally competitive costs. Iwao Shimamoto, President of Kitaeru Company, ASC, highlighted the mutual trust and shared commitment to long-term growth, noting that the joint manufacturing system will be founded on safety, superior quality, and operational excellence.

What the Numbers Show

The commitment of ₹1,116 crore for a greenfield forging facility signals a significant capital allocation towards value-added products rather than volume-based steel production. With the first line targeting commissioning in March 2028, the company is positioning itself to capture demand from both domestic OEMs and export markets. The phased approach mitigates execution risk while allowing capacity scaling aligned with actual order inflows. The generation of over 300 direct jobs also reflects the labor-intensive nature of precision forging compared to upstream steelmaking, potentially impacting local employment dynamics in the Ludhiana industrial cluster.

Vardhman Special Steels has completed its investment in Sone Solar Private Limited by subscribing to 0.5% Compulsory Convertible Debentures (CCDs) worth ₹2.64 crore. This transaction, finalized on July 8, 2026, covers the balance payment of the third and final tranche. The company's total commitment to Sone Solar, comprising equity shares and CCDs, now stands at ₹15.10 crore, with its shareholding in the equity share capital of Sone Solar Private Limited remaining constant at 26%.

The latest tranche consists of 26,43,800 CCDs with a face value of ₹10 each. This follows an initial investment of ₹1.13 crore disclosed on October 30, 2025, which involved 11,35,425 CCDs. The investment was structured through tranches of CCDs carrying a coupon rate of 0.5%.

Investment Details

The filing submitted to BSE Limited and The National Stock Exchange of India Ltd confirms the completion of this financial commitment.

The intimation was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sonam Dhingra, Company Secretary, signed the disclosure on behalf of Vardhman Special Steels Limited.