Vardhman Special Steels has finalized a deal to purchase a piece of land adjoining its existing plant at Ludhiana, admeasuring around 8 acres at a consideration of Rs 4.50 crore per acre aggregating to Rs 36 crore, in order to overcome space constraint.
Further, in order to meet higher demand from customers, the company has plans to increase existing capacity of Steel Melting Shop from 160,000 tons p.a. to 200,000 tons p.a. by the end of next financial year. The present capacity of Steel Melting Shop is fully utilized and the increased capacity will enable the company to fully utilize its existing Rolling Mill capacity of 180,000 tons p.a. The management believes that this expanded capacity could be fully utilized within a year of its commissioning.
This expansion will be possible with relatively lower investment which may be met out from term loan and/or internal accruals. This matter of expansion shall be placed before the Board in its forthcoming meeting.
Vardhman Special Steels incorporates cutting-edge manufacturing technology, ensuring the highest levels of quality and compliance. Placed among the leading producers of Special and Alloy Steels, the company caters to diverse requirements of hot rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries.
