Vardhman Special Steels Invests in New Green Steel Facility.

The Board of Directors of Vardhman Special Steels Ltd has approved a significant expansion plan involving the establishment of a new "Green Steel" plant in the state of Punjab. This decision, made during their meeting on Tuesday, April 22nd, 2025, marks a strategic move towards sustainable steel production for special and alloy steel.

The new facility will add a substantial 500,000 metric tonnes (MT) of billet production capacity, along with corresponding rolling mill and testing facilities. This expansion is projected to be completed by the financial year 2029-30. This will more than double the company's existing billet production capacity of 300,000 MT, which is currently operating at approximately 80% utilization.

The estimated investment for this ambitious project is around ₹2,000 crores, which the company plans to finance through a combination of equity, debt, and internal accruals.

Vardhman Special Steels outlined several key reasons driving this expansion:

• Anticipating Capacity Shortage: The company foresees a capacity shortfall in its existing plant post-2028.


• Meeting Future Demand: The new plant aims to cater to the anticipated increase in demand for its existing products in the coming years.


• Embracing Green Trends: Recognizing the growing importance of "Green Steel" and the circular economy in the Indian market, the new plant will utilize the Electric Arc Furnace (EAF) route, aligning with sustainable practices.


• Enhancing Quality for OEMs: The expansion will enable Vardhman Special Steels to meet the increasingly stringent quality requirements of Original Equipment Manufacturers (OEMs).


• Reducing Manufacturing Costs: The new, modern facility is expected to contribute to a reduction in the overall cost of manufacturing steel.


• Product Diversification: The expanded capacity will allow the company to diversify its product portfolio into new segments such as wire rods, forging, and the non-automotive sector.

This strategic investment in a green steel plant underscores Vardhman Special Steels' commitment to both growth and sustainability, positioning them to capitalize on future market trends and meet the evolving demands of their customers.

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