Vardhman Special Steels Limited (VSSL) is a prominent player in the special steel industry in India. It was incorporated as a separate legal entity in 2010 when Vardhman Textiles Limited demerged its steel business. Headquartered in Ludhiana, Punjab, India, VSSL operates within the Iron and Steel Mills and Ferroalloy Manufacturing Industry, specializing in manufacturing high-quality special and alloy steel for critical end-use applications in the automotive segment.
The company has grown significantly since its inception in 1973 with an initial capacity to produce 50,000 metric tons. Today, VSSL boasts a melting capacity of 250,000 MTPA and an integrated rolling mill with a 200,000 MTPA capacity. With approximately 1,500 employees, VSSL is driven by an entrepreneurial spirit and a passion for excellence, functioning as a cohesive community more than just a manufacturing entity.
VSSL is engaged in producing high-grade billets and hot-rolled bars for diverse applications across engineering, automotive, tractor, bearing, and allied industries. Its product offerings include hot rolled bars and bright bars. The comprehensive product portfolio features:
- Hot rolled, round corner square, peeled and reeled bars
- Peeled and ground bars
- Drawn and ground bars
- Heat treatment bars
The company offers a wide range of steel types including Carbon Steel, Carbon Manganese Steel, Case Hardening Steel, Chrome Steel, Chrome Manganese Steel, Chrome-Moly Steel, Nickel Chrome/Nickel Chrome Moly Steel, Through Hardening Steel, Boron Steel, Micro Alloyed Steel, Vanadium Steel, Nitriding Steel, Ball Bearing Steel, Free/Semi Free Cutting Steel, Spring Steel, and High Titanium Steel.
VSSL operates with a well-conceived plant layout, incorporating automation and contemporary technologies, supported by reliable facilities and modern material handling systems. The company maintains multiple certifications, including ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, IATF 16949:2016, NABL ISO/IEC 17025:2017, and BIS 9550, 7283, 1875.
A pivotal moment for VSSL occurred in August 2019 when it entered into a strategic partnership with Aichi Steel Corp Japan, an affiliate of Toyota Motor Corporation. Aichi Steel Corp initially acquired an 11.4% stake in VSSL and provides technical assistance to establish a world-class, socially and environmentally responsible special steel manufacturing company in India.
This partnership has recently been further strengthened, with Aichi Steel increasing its equity stake in VSSL from 11.33% to 24.90%. This reflects a deeper relationship and Aichi Steel's growing confidence in VSSL and the Indian steel market. A key objective of this collaboration is to develop special steel grades for Indian automotive companies, aiming to substitute currently imported steels and later export these grades to South Asia and Europe. The enhanced partnership supports the shared vision of developing a world-class green steel manufacturing facility in India, capable of producing high-quality special steels for global automotive and engineering industries. An upcoming plant with a manufacturing capacity of 5 lac TPA and an estimated capex of Rs. 2000 crores, backed by Aichi Steel's technical support, will integrate advanced Japanese processes and technology to serve both domestic and ASEAN markets.
As one of the leading producers of Special and Alloy Steels, VSSL caters to a diverse range of requirements for hot rolled bars across industries such as Engineering, Automotive, Tractor, Bearing, and Allied Industries. The company's prestigious clientele includes globally renowned corporations like Toyota, Volvo, Hero Moto Corp, Caterpillar, Hino Motors, Isuzu, Mitsubishi, and Bosch.
VSSL has demonstrated consistent growth in market share, increasing from 0.21% to 0.22% over the last 5 years. During the same period, the company's revenue has grown at a yearly rate of 8.54%.
Vardhman Special Steels Ltd has a market capitalization of Rs 2,143 crore as of recent reports.
Fiscal Year Performance (FY25):
- Net Profit: Rs 93.09 crore (1.59% increase from Rs 91.63 crore in FY24)
- Revenue: Rs 1,764.41 crore (6.20% increase from Rs 1,661.36 crore in FY24)
Quarterly Performance (Q4 FY25):
- Net Profit: Rs 19.73 crore (39.83% decline from Rs 32.79 crore in Q4 FY24)
- Sales: Rs 428.04 crore (2.59% decline from Rs 439.41 crore in Q4 FY24)
- Net Profit FY25: Rs 93.09 crore
- Revenue FY25: Rs 1,764.41 crore
- Return on Equity (last 3 years): 13.9%
- Pre-tax margin: 7%
- ROE: 11%
- Debt Status: Debt-free with a strong balance sheet
- Dividend Yield: 1.20%
- Market Capitalization: ₹2,143 crore
Promoter holding in Vardhman Special Steels Ltd decreased slightly to 60.37% as of March 2025 from 60.56% as of June 2024. This minor change is primarily attributed to the increased stake of Aichi Steel Corporation, reflecting the strategic partnership and foreign investment in the company.
VSSL remains committed to technological advancement and sustainable growth. The management focuses on improving systems to reduce the carbon footprint of steel, adopting new technologies and automation for superior product quality, and implementing best practices for cultural and people development.
The strengthened partnership with Aichi Steel Corporation strategically positions VSSL to leverage advanced Japanese technology and processes, potentially opening new growth avenues in both domestic and international markets. The planned green steel manufacturing facility is a significant step towards sustainable practices, aiming to meet the growing demand for high-quality special steels in the automotive and engineering sectors.
