Vardhman Special Steels Ltd approves setting up of a new Green Steel Plant

The Board of Directors of Vardhman Special Steels Ltd in its meeting held today i.e., Tuesday, the 22nd April, 2025 has approved the proposal for setting up of a new Green Steel plant in the State of Punjab for manufacturing of special and alloy steel.

The existing capacity is 3,00,000 MT of Billet Production whose current capacity utilization is 80% (approx.).

The proposed capacity addition is 5,00,000 MT of Billet production with commensurate Rolling Mill & testing facilities which is expected to be added by FY 2029-30.

The funding of Rs. 2000 crores (approx.) is expected to be financed by Equity, Debt & Internal Accruals.

The rationale for the expansion is as follows:

1. After 2028, there will be a Capacity shortage in the existing plant.

2. We need to set-up a new plant with a billet production capacity of 500,000 MT per annum to meet the increased demand in future years primarily in existing products.

3. Trends shaping in Indian Market like Green Steel and Circular Economy will push demand of steel through EAF route.

4. To meet higher level quality requirements of the OEMs.

5. To reduce the Cost' of manufacturing steel.

6. To diversify into new products like Wire Rods, Forging & Non- Automotive segment.

Shares of Vardhman Special Steels Limited was last trading in BSE at Rs. 207.50 as compared to the previous close of Rs. 203.90. The total number of shares traded during the day was 20320 in over 790 trades.

The stock hit an intraday high of Rs. 218.00 and intraday low of 203.45. The net turnover during the day was Rs. 4277620.00.

Source : Equity Bulls

Keywords

VardhmanSpecialSteels INE050M01012 VSSL IronandSteelProducts GreenSteelPlant Expansion Punjab