Vardhman Special Steel soars 9% on starting production for Toyoto Group Co

The company said sales of these products for FY2023- 24 will be 10,000 MT approx and further increase with receipt of more approvals in next 2-3 years.

Shares of Vardhman Special Steel (VSSL) hit a record high of Rs 374.90 as they rallied 9 per cent on the BSE in Wednesday’s intra-day trade after the company said it started mass production of steel for forging companies of Aichi Steel Corporation (ASC) based in South East Asia for some grades that the company had received approvals.

The stock of iron & steel products company surpassed its previous high of Rs 359.65, touched on February 17, 2023. In comparison, the S&P BSE Sensex was down 0.37 per cent at 59,999 at 11:55 AM.

VSSL said the sales of these products for FY2023- 24 will be 10,000 MT approx. It will further increase with the receipt of more approvals in next 2-3 years. The management said this will establish VSSL and India as a supplier of high-quality automotive steel.

In August 2019, VSSL entered into a strategic alliance with Aichi Steel Corporation (ASC) Japan, the main material producer for Toyota Group wherein ASC had participated in equity and entered into a Technical Assistance Agreement.

ASC is one of the largest alloy steel manufacturer in the world having a production capacity of more the 1.2 million TPA & having a turnover of more than Rs 15,000 crore.

VSSL is one of India’s leading producers of special steels, catering to diverse requirements of automotive, engineering, tractors, bearings and allied industries. The company also takes care of steel requirements of select customers for forging applications in international markets such as Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam and Japan.

The company has developed long term relationships with reputed and renowned customers globally, which include corporations such as Toyota, Maruti, Hyundai, Hero Moto Corp, Caterpillar, Hino Motors and Bajaj, among others.