Vardhman Special Steels Limited (VSSL), one of India’s leading manufacturers of special steels, has laid the foundation stone for a new state-of-the-art forging facility at Village Mangarh, Kohara, Chandigarh Road, Ludhiana. The project marks a major expansion for the company as it enters the precision-forged automotive components segment through its long-standing partnership with Japan’s Aichi Steel Corporation.
The foundation stone ceremony was attended by Punjab Chief Minister Bhagwant Singh Mann, highlighting the state’s focus on attracting advanced manufacturing investments and strengthening Punjab’s industrial ecosystem. VSSL will invest ₹1,116 crore in the project over two phases. In the first phase, the company will establish a forging line along with a Non-Destructive Testing (NDT) facility, with commercial operations targeted by March 2028. A second forging line will be added in the next phase based on market demand and business expansion.
The facility will manufacture ring gears and other high-precision forged automotive components using advanced rolling mill forging technology provided by Aichi Steel Corporation. The products will cater to leading automotive manufacturers in India as well as export markets across Europe, ASEAN, Africa and Mexico.
The investment represents VSSL’s strategic move towards value-added manufacturing by integrating its expertise in special steel production with precision forging capabilities. The company aims to offer automotive original equipment manufacturers (OEMs) a comprehensive range of high-quality products while improving supply chain efficiency and strengthening customer partnerships.
The project is expected to generate more than 300 direct employment opportunities, supporting the growth of Punjab’s automotive manufacturing sector. It also aligns with the Government of India’s efforts to promote advanced manufacturing, technology transfer and export-oriented industrial development.
Commenting on the development, Sachit Jain, Chairman and Managing Director of Vardhman Special Steels Limited, said the new facility marks an important milestone in the company’s growth strategy. He noted that the investment will transform VSSL from a special steel producer into an integrated supplier of special steels and precision-forged automotive components. By combining the company’s metallurgical expertise with Aichi Steel’s advanced forging technology, VSSL aims to deliver world-class products at competitive costs while expanding its manufacturing capacity in line with customer demand.
Iwao Shimamoto, President of Kitaeru Company, Aichi Steel Corporation, said the partnership is built on a shared commitment to long-term growth and manufacturing excellence. He added that the collaboration will bring Aichi Steel’s forging expertise to India and establish a production system focused on safety, quality and operational efficiency, while contributing to the development of the country’s automotive industry.
Headquartered in Ludhiana, Vardhman Special Steels Limited supplies special and alloy steel products to the automotive, engineering, tractor and bearing industries. Its products are exported to several international markets, and its customer base includes leading global manufacturers such as Toyota, Maruti Suzuki, Hyundai, Hero MotoCorp, Caterpillar, Hino Motors and Bajaj Auto. The new forging facility is expected to strengthen the company’s position as a global supplier of advanced automotive components.
