In a major Indo-Japanese industrial collaboration, Aichi Steel Corporation, Japan, has significantly increased its equity stake in Vardhman Special Steels Limited (VSSL) from 11.33% to 24.90%, through a fresh investment of ₹384.90 crore. The preferential allotment of 1,47,70,100 fully paid-up equity shares at ₹260.60 per share was approved by VSSL’s board, marking a new phase in the strategic partnership between the two companies.
The move reflects Aichi Steel’s strong confidence in VSSL’s capabilities and the long-term prospects of the Indian special steel industry. Both companies also unveiled plans to jointly develop a state-of-the-art green steel manufacturing facility in India with an annual capacity of 500,000 tonnes and an estimated capital expenditure of ₹2,000 crore. The upcoming facility will integrate advanced Japanese technologies to serve both domestic and ASEAN markets, positioning India as a key hub for sustainable and high-quality special steel production.
Strategic Vision: Green Steel for a Sustainable Future
The new plant will leverage electric arc furnace (EAF) technology, extensive scrap recycling, and green energy integration, placing sustainability and low emissions at the core of its operations. The project is closely aligned with India’s “Make in India” initiative and the global push towards decarbonization in manufacturing.
Mr. Sachit Jain, Vice Chairman & Managing Director, VSSL, said:
“Aichi Steel’s increased investment underscores our shared commitment to long-term growth, quality, and sustainability. This strategic partnership is a major step toward establishing a world-class green steel facility in India, a contribution to both the global market and India’s industrial development vision.”
Mr. Naohide Goto, President, Aichi Steel Corporation, remarked:
“This marks a new chapter in our affiliation with Vardhman. Both companies share a strong foundation in low-emission steel production, and VSSL’s use of green energy complements our commitment to sustainability. Together, we aim to deliver high-quality, cost-effective, and eco-friendly steel solutions to customers in India and beyond.”
With this move, Vardhman Special Steels strengthens its position as a premier supplier of special and alloy steels to the automotive and engineering sectors, and Aichi Steel expands its global footprint with a deeper presence in the rapidly growing Indian market.