Vardhman Special Steels to Invest Rs. 2,000 Cr. in New Plant
Punjab-based special and alloy Steel producer, Vardhman Special Steels Ltd., will be setting up a greenfield plant in Punjab. The company will make an investment of about Rs. 2,000 crore for the development of this new Steel plant. Vardhman Special Steels is expected to commission this project by FY-30. Vardhman Special Steels is a part of the Vardhman Group, popularly known for its textile products.
Vardhman Special Steels’ upcoming plant in Punjab will have production capacity of 5,00,000 Metric Tonne Per Annum (MTPA) of Steel billets. The company will also set up rolling mill and allied testing facilities at its new plant. This project will be funded through a combination of internal accruals, equity and debt.
Mr. Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels Ltd. expects a capacity shortage after 2028 from the company’s existing production lines. Therefore, he views this greenfield plant as a measure to “…address the expected capacity shortage…This will support future demand, meet evolving quality standards, align with trends like Green Steel, and help reduce manufacturing costs”. Currently, Vardhman Special Steels has a melting capacity of 3,00,000 MTPA, and an integrated rolling mill of 2,00,000 MTPA at its Ludhiana factory.
