Vardhman Special Steels rises over 3 per cent on getting environmental clearance for Ludhiana expansion

The shares of Vardhman Special Steels Limited (VSSL) were trading higher by over 3 per cent intraday after the company informed the exchanges that the Ministry of Environment granted the long-awaited environmental clearance for the expansion of capacity at its existing plant in Ludhiana, up to 2,80,000 tonnes per annum of rolled production.  

VSSL applied for the said approval in CY19 and since then, it has been pitching its case before the concerned authorities for the grant of environment clearance.  With the approval, the path for enhancement of capacity is cleared.   

In a press release to BSE, the company stated that its current rolling capacity of 2,00,000 tonnes per annum would be increased to 2,50,000 tonnes and this would also enable VSSL to fill up the enhanced capacities with the requirements of Aichi, partners of VSSL. The company has sent out its first samples to its customers for Aichi’s operations in Thailand as well as in Philippines and also, to the Head Office in Japan. Once the company meets the requirements of Aichi, the management is confident of achieving higher profitability.  

Vardhman Special Steels Limited is among India’s leading producers of special steels, catering to diverse sectors of automotive, engineering, tractor, bearing & allied industries. The company also takes care of steel requirements of select customers for forging applications in the international markets of Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam and Japan.  

At 1.25 pm on Thursday, the stock of VSSL was trading at Rs 220.55, up by 3.52 per cent or 7.50 per share as against a 0.67 per cent gain in the benchmark index.  The 52-week high and 52-week low of the scrip was recorded at Rs 236 and Rs 54.55, respectively on BSE.