Vardhman Special Steels to invest ₹1,116 crore in new forging unit
Vardhman Special Steels Limited is investing ₹1,116 crore to establish a new state-of-the-art forging facility in Ludhiana. In partnership with Aichi Steel Corporation, the unit will produce precision-forged automotive components. The first forging line is targeted for commissioning by March 2028. This expansion aims to enhance value-added product offerings.
The announcement involves a substantial investment of ₹1,116 crore, a new manufacturing facility, strategic partnership with a Japanese firm, and expansion into high-value automotive components, which will significantly impact the company's business operations, market position, and future revenue streams.
The announcement details a significant investment in a new forging unit, strategic partnership, and expansion into high-value automotive components, indicating positive growth and future prospects for the company.
Vardhman Special Steels Limited (VSSL) has commenced the construction of a new state-of-the-art forging facility at Village Mangarh, Kohara, Chandigarh Road, Ludhiana. The foundation stone for this significant expansion was laid by the Hon'ble Chief Minister of Punjab, S. Bhagwant Singh Mann Ji.
This new unit represents VSSL's strategic move towards forward integration into high-value precision-forged automotive components, a venture undertaken in partnership with Aichi Steel Corporation, Japan. The facility will utilize Aichi Steel's advanced forging technology to manufacture Ring Gears and other precision-forged automotive components. These products will be supplied to leading Original Equipment Manufacturers (OEMs) in India and international markets including Europe, the ASEAN region, Africa, and Mexico.
The total investment committed for this project is ₹1,116 crore, to be implemented in two phases. The first phase will see the establishment of one forging line and a Non-Destructive Testing (NDT) line, with commissioning targeted by March 2028. A second forging line will be added in a subsequent phase based on customer demand and business growth. This expansion is expected to create direct employment for over 300 people and bolster Punjab's automotive manufacturing ecosystem.
This initiative aligns with VSSL's strategy to move up the automotive value chain by offering higher value-added products. By integrating its special steel manufacturing with precision forging capabilities, VSSL aims to provide comprehensive solutions to automotive OEMs, thereby improving product quality, supply reliability, and customer engagement. The project also supports the Government of India's 'Make in India' initiative by strengthening domestic manufacturing capabilities and promoting advanced manufacturing practices.
Mr. Sachit Jain, Chairman & Managing Director of Vardhman Special Steels Limited, stated that this project is a transformational milestone, enabling VSSL to evolve from a special steel manufacturer to an integrated supplier of special steels and precision-forged components. He added that the company intends to progressively expand its forging capacity in line with growing customer demand. Mr. Iwao Shimamoto, President of Kitaeru Company, ASC, expressed confidence in the partnership, emphasizing a shared commitment to long-term growth and the establishment of a manufacturing system founded on safety, superior quality, and operational excellence.
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