Vardhman Special Steels Limited (VSSL), a manufacturer of special and alloy steels, and Aichi Steel Corporation have announced plans to establish a new special steel manufacturing facility in India with an estimated investment of INR 20 billion. The upcoming plant will have a production capacity of 500,000 tonnes per annum and will incorporate Japanese technology and processes. The facility is intended to supply high-quality steel to domestic and ASEAN markets.
The project is part of an expanded strategic partnership between the two companies. As part of the collaboration, Aichi Steel has increased its stake in VSSL from 11.33 percent to 24.90 percent through a preferential allotment. The investment amounts to approximately INR 3.85 billion, involving the issue of 14,770,100 equity shares at INR 260.60 per share.
The agreement was signed on 3 June 2025 by Sachit Jain, Vice Chairman and Managing Director of VSSL, and Naohide Goto, President of Aichi Steel Corporation. The companies stated that the joint effort would focus on producing environmentally responsible steel using electric furnaces and green energy inputs.
“This long-term partnership is set to create a world-class special steel plant in India to make green steel for the world,” said Sachit Jain. “We remain focused on disciplined execution, backed by strong governance and a commitment to quality, safety, and sustainability.”
Naohide Goto added, “Today, we signed an agreement for additional investment. This means Vardhman Steel and Aichi Steel have taken a new step as affiliated companies. Both companies are steel makers that hold a big advantage in lower carbon emission because of using Electric Furnace and in strong scrap distribution networks. In addition, Vardhman Steel also has advanced processes that use green energy, and we believe that it can make a significant contribution to customers seeking ‘green products’.”
The plant is expected to support customer demand for locally sourced, low-emission steel and contribute to expanded industrial cooperation between Indian and Japanese firms.
The expansion comes as VSSL advances its manufacturing capabilities. The company recently commissioned a KOCKS Reducing & Sizing Block RSB 370++/4 at its upgraded SBQ rolling mill. Production commenced shortly after the first bar was rolled and the Final Acceptance Certificate (FAC) was signed.
The 3-roll finishing block enables the precise production of straight bars diameters ranging from 16.0 mm to 100.0 mm. According to the company, this investment supports VSSL’s role as a supplier to demanding automotive and engineering industries and marks a step forward in producing KOCKS rolled SBQ products in India.
Vardhman Special Steels Limited, based in Ludhiana, Punjab, manufactures special and alloy steels for the automotive and engineering sectors. The company is part of the Vardhman Group and supplies domestic and international customers.