The proposed forging unit would result in forward integration of Vardhman Special Steels’ existing steelmaking operations.

This expansion would enable the company to offer a comprehensive, one stop solution automotive OEMs, spanning steel production through to forged components.

The chain investment is aimed at strengthening the company’s position within the automotive supply by expanding its value-added product portfolio and increasing participation across critical automotive components.

Sachit Jain, chairman & managing director, Vardhman Special Steels, said: 'Over the years, we have consistently evaluated venturing into forgings with our partner Aichi Steel Corporation who is having the largest forging capacity in automotive domain with unique know-how and technologies in Japan.

With the rising customer demand, market visibility and our internal capabilities now aligned, I am happy to share that we are going ahead with the setting up of a forging and machining unit in Ludhiana itself. Our entry into steel forgings is a natural progression of our steelmaking operations and positions us as a more comprehensive partner to automotive OEMs.'

Vardhman Special Steels is one of India’s leading producers of special steels, catering to diverse requirements of automotive, engineering, tractors, bearings and allied industries.

The scrip rose 0.48% to currently trade at Rs 293.45 on the BSE.