Vardhman Special Steels Limited (VSSL) plans to set up a greenfield special and alloy steel plant in Ludhiana district, Punjab, with an investment of INR 25 billion. The facility will be established in a joint venture with Japan’s Aichi Steel Corporation (ASC).
The plant will have an installed capacity of 500,000 tonnes per annum. Production will be carried out through the electric arc furnace route. VSSL vice chairman and managing director Sachit Jain said that a solar power plant will also be set up with an additional investment of INR 5 billion to meet energy requirements. This will be over and above the INR 20 billion allocated for the steel plant.
The project is expected to generate direct employment for 1,500 people, in addition to indirect jobs.
VSSL added that the focus will be on producing steel from scrap using energy-efficient technologies and renewable energy sources. The plant is planned to follow the Toyota way layout to enhance operational efficiency and safety.
Aichi Steel Corporation has been an investor in VSSL since 2019. Following a recent third-party allotment of shares, Aichi Steel has increased its stake in VSSL to about 24 percent from the earlier 11 percent, making VSSL an associated company under the equity method.
Since its initial investment, Aichi Steel has provided technical assistance to improve VSSL’s quality and productivity, with Vardhman’s materials being supplied to Japanese automotive customers as well as markets in India and ASEAN countries. The additional investment is aimed at supporting a planned 30 percent increase in VSSL’s production capacity.
Aichi Steel has stated that strengthening its partnership with VSSL aligns with its medium-term management plan for FY2024–FY2026, which focuses on expanding its business in India in response to growing steel demand.
Vardhman Special Steels Limited, part of the Vardhman Group, manufactures special and alloy steels primarily for the automotive sector. The company supplies products to both domestic and international markets.
