From Steel to Sustainability: Inside Poshs Metal’s ESG Journey by Abhishek Mittal, Partner, Aavishkaar Capital

 For decades, steel has shaped the world around us. It has powered factories, built cities and strengthened the backbone of global manufacturing. But as the world moves toward cleaner growth and responsible production, even traditional industries are being called to adapt. In India, Poshs Metal is one company that has responded to this shift with clarity and intent. Supported by its partnership with Aavishkaar Capital, the company is working to build a greener and more efficient future while continuing to serve some of the biggest names in the automotive sector.

 Poshs Metal has been a trusted partner to Tata Steel for more than twenty years. Over time, it has earned the confidence of leading automobile manufacturers by supplying precision steel components that keep India’s mobility sector moving. As customer expectations have evolved, Poshs recognised the need to upgrade not just capacity but also sustainability standards. This is where Aavishkaar Capital came in, helping the company scale in a way that is economically strong and environmentally responsible.

Powering a Greener Tomorrow

Globally, steel remains one of the largest contributors to carbon emissions. With Europe’s Carbon Border Adjustment Mechanism coming into force by 2026, exporters will need to report both their export volumes and the emissions associated with production. This change affects the entire steel value chain and increases the pressure on processors that supply to automotive companies. Poshs Metal saw this shift early and began investing in renewable energy. The company has installed solar panels across its existing operations in Pune and is now developing a 650 kWp solar plant at its upcoming Aurangabad facility. The plant will enable Poshs to run entirely on solar power and reduce electricity costs by nearly 40 percent. This is not just an environmental step but also a smart business decision that strengthens long-term cost efficiency.

Sustainability at Poshs goes beyond power generation. Employees are encouraged to use electric two-wheelers for their daily commute, and the company is exploring electric vehicles for logistics between plants and customers. The new Aurangabad site will also have its own railway siding, which will replace a significant portion of long-distance trucking. Moving raw materials and finished goods by rail will cut fuel usage, reduce emissions and improve delivery reliability.

Efficiency through Design and Recycling

Precision has always been central to Poshs Metal’s identity. By designing steel blanks that match exact automotive specifications, the company reduces waste and speeds up production for its customers. This design-led approach helps Poshs deliver consistent quality while using fewer resources. Recycling is now a major part of the company’s sustainability agenda. All scrap generated at Poshs facilities is collected and supplied to Tata Steel empanelled dealers for responsible recycling. The company has also started collecting scrap from customer factories, processing it and converting it into high-quality steel inputs. These inputs perform as well as new material, and every batch is traceable. For customers, this brings both transparency and confidence, while for Poshs it creates a circular system that reduces reliance on virgin raw materials.

Waste Reduction through Packaging Innovation

Poshs has replaced wooden pallets with its patented reusable steel pallets, dramatically reducing waste and eliminating the need for timber-based packaging. Today, nearly 80 percent of all processed steel is transported on these durable pallets, and the company is working toward transitioning fully to this system. What began as an internal efficiency solution has now grown into a service offered to other steel processors, helping the wider industry cut waste and adopt more sustainable packaging practices.

Expanding Sustainably in Aurangabad

The new Aurangabad facility represents a major milestone in Poshs Metal’s growth. Backed by Aavishkaar Capital, the plant has been designed to increase production capacity while maintaining a strong sustainability foundation. Aurangabad is a major automotive hub, home to Bajaj Auto, Skoda, Varroc Engineering, Endurance Technologies and Toyota (Upcoming). By locating closer to its customers, Poshs will reduce transportation time, lower logistics costs and cut emissions. The railway siding will further streamline long-distance movement and make operations cleaner and more economical.

Forging a Sustainable Future

Sustainability investments are helping Poshs evolve from a traditional parts supplier into a strategic and dependable partner for automakers. With lower operational risk, stronger cost efficiency and a clear focus on cleaner, future-ready manufacturing, the company is better positioned to win long-term contracts, secure favourable financing, and build resilience for the future. By measuring its impact transparently and communicating it clearly, Poshs can turn its sustainability actions into meaningful commercial advantage.

 The partnership between Poshs Metal and Aavishkaar Capital demonstrates how sustainability can anchor a company’s growth strategy. Through renewable energy adoption, cleaner mobility initiatives, improved recycling systems and more efficient product design, Poshs Metal is shaping a model where operational strength and environmental responsibility reinforce each other.

 As global industries move toward low-carbon production, Poshs stands out as proof that even established, heavy sectors can innovate and adapt. Its journey from traditional steel processing to sustainable manufacturing reflects purpose, partnership and a steady commitment to building a more responsible future.