Vardhman Special Steels Limited (VSSL) plans to increase its rolling mill capacity to 270,000 tonnes by successful commissioning of the Kocks Block and installation of a new reheating furnace in FY26. The company is coming up with an INR 2,000 crore investment for a new 5,00,000 TPA steel plant in Punjab for the manufacturing of special and alloy steel. This was revealed by Ms. Soumya Jain, Executive Director, Vardhman Special Steels Limited in an exclusive interview with Tube & Pipe India.
Tube & Pipe India: Kindly share details about your business journey, highlighting major milestones and crucial achievements.
Soumya Jain: Vardhman Special Steels Limited (VSSL) has undergone a remarkable transformation since its inception in 1973 as Oswal Steels with an initial capacity of 50,000 TPA of special and alloy steels. The company demonstrated early ambitions for growth with the acquisition of Mohta Alloys in 1986, expanding capacity to 1,00,000 TPA. Over the following decades, the company consistently invested in technology and infrastructure, installing a modern steel melting shop with electromagnetic stirrer in 1995 and commissioning a vacuum degassing system in 2000. In 2001, it further diversified its offerings by adding a bright bar facility. A key strategic shift came in 2010, when the company gained an independent identity under the prestigious Vardhman Group, setting the stage for a new era of growth and recognition, including being listed on both the BSE and NSE in 2012.
The 2010s marked a period of aggressive capacity expansion, technology upgrades, and corporate strengthening. In 2013, the company installed a fully automatic rolling mill and advanced testing systems from global leaders. The years that followed saw further infrastructure upgrades, such as the fume extraction system (2015), transformer enhancements (2016), and significant increases in both bright bars and hot rolled capacities. Capital infusions through a rights issue (2017) and a QIP (2018), land acquisitions, and a credit rating upgrade by CRISIL strengthened the company’s financial and operational position.
A landmark collaboration came in 2019 with Japanese specialty steel manufacturer, Aichi Steel Corporation of Japan, bringing in both technical expertise and strategic equity investment, marking a new phase of international alignment. More recently, the partnership with Aichi Steel Corporation led to the commencement of mass production in 2023 and authorised approvals from Toyota & Maruti, showcasing Vardhman’s readiness to compete on a global scale. VSSL has announced a capex of INR 2,000 crore for a new greenfield steel plant in Punjab for the manufacturing of special and alloy steel.
TPI: Shed light on your recent developments. Where do you see yourself five years down the line?
SJ: We recently commissioned the Kocks Block. It is currently in the stabilization phase. We are planning to install a new reheating furnace in FY26. Once both are fully operational and stabilized, they will enhance our productivity, reduce inventory requirements and increase the rolling mill capacity to 270,000 tonnes from the current 200,000 tonnes. We realise that these incremental additions will suffice only for a couple of years, so we are setting up a state-of-the-art steel plant in Punjab with a planned capacity of 5,00,000 TPA of billet production with commensurate rolling mill and testing facilities. All inputs in the plant will be from Aichi Steel. This will make us distinct from others in the industry. We shall be producing Green Steel from this new plant. The company also aims to keep the flexibility in the new unit to diversify into new product segments. The new capacity, expected to be commissioned by FY 2029-30, will reduce the overall cost of steel manufacturing. The project aligns with trends such as the circular economy and green steel, a trend gaining momentum in the Western world that will soon cascade to the Indian shores. Vardhman may look forward to forging business in India. We expect Aichi Steel Corporation to invest more in VSSL.
More recently, the partnership with Aichi Steel Corporation led to the commencement of mass production in 2023 and authorised approvals from Toyota & Maruti, showcasing Vardhman’s readiness to compete on a global scale.
TPI: Please give information about your manufacturing plants and annual production capacity catering to the steel sector.
SJ: VSSL operates its primary manufacturing facility in Ludhiana, Punjab. We have increased our billet-making operating capacity from 50,000 TPA in 2010 to 3,00,000 TPA in FY25, largely through process improvements and an investment of over INR 150 crore, which is a fraction of what we would have otherwise invested for a brownfield expansion of the same size.
TPI: Please tell us about your steel-related products basket. Which are the industries where these products find application?
SJ: Our products are majorly used for making components having application in the automotive industry. Some of the components made from our steel include axle gears, stabilizer bar, piston, knuckle spindle, connecting rod, camshaft, center velocity joint, crankshaft, differential gears, transmission gear, drive-shaft, tie-rod, bearings, companion-flange, axle shaft, piston-pin, steering-yoke, and steering shaft.
Vardhman is among the few steel manufacturers with low carbon intensity with 0.73 tonnes of CO2 per tonne of steel as against about 3 tonnes of CO2 per tonne of steel of peers.
TPI: What is your USP that sets you apart from others? How do you manage to stay ahead of the curve in the industry?
SJ: Vardhman is among the few steel manufacturers with low carbon intensity with 0.73 tonnes of CO2 per tonne of steel as against about 3 tonnes of CO2 per tonne of steel of peers. Our partnership with Aichi has enabled us to build an optimal global production system and meet customer requirements. We plan to manufacture Japanese quality steel in India for auto majors in the country as well as for the ASEAN region, while focusing on reduced manufacturing costs through waste elimination. We have the best-in-class R&D facility, which ensures the highest level of quality and compliance.
TPI: Tell us about your local and international market footprint. How do you plan to enhance your business presence in India as well as at the global level?
SJ: We have a strong domestic and international base of 200+ reputed and long-term customers. Our major clients include Toyota, Maruti, Hero Moto Corp, Caterpillar, Hino Motors, Bajaj and Hyundai. In FY-25, we exported 6 percent of our products in countries such as Thailand, Taiwan, Turkey, Russia, Germany and Spain. Our collaboration with Aichi Steel Corporation will increase this percentage in future.
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TPI: How are you addressing sustainability and environmental concerns in your production?
SJ: Vardhman is among the few steel manufacturers with low carbon intensity. By adopting the Electric Arc Furnace (EAF) route for steel making since its inception, we have embedded environment management as our operating platform. The EAF route uses 80 percent ferrous scrap, which shows we are best suited to auto OEs in complying with the Circular Economy norms. We are at 0.73 tonnes of CO2 per tonne of steel against about 3 tonnes of CO2 per tonne of steel for manufacturers using the blast furnace route. We are going a few steps further. We have contracted for setting up a 42 MW AC solar power plant, which will further optimize our carbon footprint to about 0.45 tonnes of CO2 per tonne of steel. Apart from this, we have developed Miyawaki Forest of about 12 acres, which will become a denser forest in the next 2-3 years. It will further reduce our carbon footprint. Also, we have replaced fuel oil with natural gas in all the operations of our plant. We have installed a fume extraction system, which collects dust particles before they are released in air.
With the right blend of technology, sustainability, and customer-centric approach, Vardhman Special Steels will play a leading role in shaping the future.
TPI: What trends do you see shaping the future of the metal industry?
SJ: India is fast emerging as a global manufacturing powerhouse. The metal industry is undergoing a transformation driven by technological advancements and a strong global push towards sustainability. Environmental regulations and customer expectations are pushing metal manufacturers to reduce carbon footprints. This includes adopting green steel, electric arc furnaces, and renewable energy in production. The move towards a circular economy is another crucial trend. With raw material scarcity and environmental concerns, metal recycling is gaining prominence. This is encouraging closed-loop systems to reduce waste and reliance on virgin ores. Supportive government policies, such as PLI schemes and infrastructure initiatives, National Steel Policy, and infrastructure spending are directly aiding the growth of domestic manufacturing and exports. Infrastructure, construction, automotive, and renewable energy projects are driving up demand for steel, aluminium and specialty alloys, particularly in emerging markets like India.
Multinational corporations are de-risking their supply chains by diversifying away from China. India is becoming a key alternative hub for sourcing and manufacturing, boosting domestic capacity and foreign investment in metals and forging. Lastly, as geopolitical tensions and trade dynamics reshape the global landscape, building resilient, localized supply chains has become vital. We are forging long-term partnerships and diversifying our procurement strategies to remain agile and secure. We are investing in energy-efficient processes, waste reduction, and increased use of recycled materials to ensure that we stay ahead of environmental expectations. Overall, we see this as a time of great opportunity. We’re confident that with the right blend of technology, sustainability, and customer-centric approach, Vardhman Special Steels will play a leading role in shaping the future.
