Vardhman Special Steels Limited has officially announced its investment of ₹475 crore to establish a new steel forging and machining manufacturing facility in Ludhiana, Punjab. The announcement was made through a regulatory filing on December 23, marking a significant expansion into value-added automotive components with technical expertise from Aichi Steel Corporation.

Investment and Partnership Details

The proposed facility represents a strategic forward integration of the company's existing steel-making operations. Key parameters of this expansion include:

Strategic Forward Integration

The forging unit marks a strategic forward integration of Vardhman Special Steels' existing steel-making 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 is expected to deliver higher quality consistency, improved supply reliability and closer customer alignment, supported by Japanese quality standards across the manufacturing value chain.

Management Commentary

Commenting on the expansion, Mr. Sachit Jain, Chairman Managing Director, stated that the company has consistently evaluated venturing into forgings with partner Aichi Steel Corporation, which has the largest forging capacity in the automotive domain with unique know-how and technologies in Japan. He emphasized that with rising customer demand, market visibility and internal capabilities now aligned, the company is proceeding with setting up the forging and machining unit in Ludhiana.

Market Positioning and Growth Strategy

The investment aims to strengthen 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. Vardhman Special Steels currently serves renowned customers globally, including Toyota, Maruti, Hyundai, Hero MotoCorp, Caterpillar, Hino Motors and Bajaj, among others.

Vardhman Special Steels has announced a major expansion initiative with its board approving the establishment of a new forging plant in Punjab. The board of directors, in their meeting held on December 22, 2025, approved the proposal for setting up a manufacturing unit for forging of steel meant for the automobile industry. The project represents a substantial investment of ₹475.00 crores and is strategically positioned to serve the automotive sector with Japanese-quality manufacturing standards.

Board Meeting and Regulatory Disclosure

The board meeting commenced at 10:00 a.m. and concluded at 12:15 p.m. on Monday, December 22, 2025. The company has made the necessary disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing both BSE Limited and The National Stock Exchange of India Ltd about this significant development.

Strategic Investment and Forward Integration

The new forging facility represents a forward integration of Vardhman Special Steels' existing steel-making operations, offering a comprehensive, one-stop solution for automotive Original Equipment Manufacturers (OEs). This strategic move is backed by Japanese-quality standards, positioning the company to deliver superior products to the automotive industry.

Automotive Sector Focus and Expected Benefits

The new forging plant is specifically designed for forging of alloy steel to make components for the automotive industry. This facility will enable the company to provide end-to-end solutions to automotive manufacturers, leveraging their existing steel-making expertise while expanding into value-added forging operations.

The expected benefits include enhanced manufacturing capabilities, improved market positioning in the automotive supply chain, and the ability to offer comprehensive solutions backed by Japanese-quality standards. This development aligns with the growing demand for precision-engineered forging products in the automotive sector.

Expansion Significance

This development represents Vardhman Special Steels' continued expansion in the manufacturing sector, with the Punjab location providing strategic advantages for serving northern markets. The substantial investment amount reflects the company's long-term commitment to strengthening its market position in the forging industry and creating a vertically integrated business model that spans from steel-making to component manufacturing for the automotive sector.