Vardhman Special Steels Limited approved an investment of INR 4.75 billion to set up a steel forging and machining manufacturing facility in Ludhiana, Punjab, marking its entry into the steel forgings segment. The proposed unit represents a forward integration from steelmaking into forged automotive components and is intended to expand the company’s participation in value-added manufacturing.
The proposed facility will be located in Ludhiana and will support the production of forged and machined components for automotive original equipment manufacturers. The project involves technical know-how and expertise from Aichi Steel Corporation, with whom Vardhman Special Steels has an existing partnership.
“Over the years, we have consistently evaluated venturing into forgings with our partner Aichi Steel Corporation who is having the largest forging capacity in automotive domain with unique know-how and technologies in Japan. With the rising customer demand, market visibility and our internal capabilities now aligned, I am happy to share that we are going ahead with the setting up of a forging and machining unit in Ludhiana itself,” said Sachit Jain, Chairman and Managing Director of Vardhman Special Steels Limited.
The company stated that the forging unit is designed to integrate with its existing steelmaking operations, enabling it to supply customers across the value chain from steel production to finished forged components. The integrated structure is expected to support quality consistency, supply reliability, and closer alignment with customer requirements.
The investment is aimed at expanding the company’s value-added product portfolio and increasing its participation in critical automotive components. Vardhman Special Steels indicated that the new facility is expected to support deeper customer engagement and long-term growth opportunities within the automotive supply chain.
“Our entry into steel forgings is a natural progression of our steelmaking operations and positions us as a more comprehensive partner to automotive OEMs. This investment strengthens our value proposition and accelerates our next phase of growth by expanding into higher value-added segments,” said Sachit Jain.
Vardhman Special Steels Limited was incorporated in May 2010 and was vested with the steel business of Vardhman Textiles Limited in 2011 pursuant to a scheme of arrangement and demerger. Headquartered in Ludhiana, Punjab, the company manufactures special and alloy steels in the form of billets, bars, rods, and bright bars.
The company supplies steel products to automotive, engineering, tractor, bearing, and allied industries and also caters to select customers for forging applications in international markets including Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam, and Japan. Its manufacturing facilities are equipped with modern production technology, and its customer base includes automotive and industrial equipment manufacturers in India and overseas.
