Vibhor Steel Tubes (VSTL) has significantly expanded its installed capacity to 377,000 metric tonnes per annum (MTPA) with the commissioning of its new 156,000 MTPA greenfield plant in Sundargarh, Odisha. This strategic expansion marks a major step in the company’s growth trajectory, reinforcing its position as a leading manufacturer of high-quality steel tubes and pipes in India.
The newly operational Unit III facility received its permanent electricity connection, following initial production runs using generator power in late June. Located on a 23.98-acre site, the plant built at an investment of ₹119.83 crore enables VSTL to better serve Eastern India’s growing market demand for steel tube while producing specialized products including crash barriers, high mast lighting poles, and monopoles, catering to growing infrastructure and industrial demand.
With this expansion, VSTL now operates three manufacturing plants across Maharashtra, Telangana, and Odisha, creating a robust pan-India production network. The Odisha facility’s grid power connection is expected to significantly improve operational efficiency and cost optimization, allowing the company to maximize the new unit’s potential.
Commenting on the development, Vijay Kaushik, Chairman and Executive Director, Vibhor Steel Tubes, said, “The commencement of electricity supply at the Sundargarh plant is a significant step, marking a successful end to our pursuit towards building a state-of-the-art plant. This also marks the beginning of a new chapter for us at Vibhor Steel Tubes, given our focus on higher margins from value-added products and newer markets. Apart from this, the additional capacity will also firm our resolve to tap the export markets in a big way. The effort spanned over 30 months, and the project completion was achieved within the budget. I want to thank each stakeholder for their unwavering support on this ambitious project. The future has got brighter and our resolve is a bit more fortified.”
Vibhor Steel manufactures a range of steel products, including electric resistance welded pipes, hot-dipped galvanised pipes, hollow section pipes, primer painted pipes, and SS pipes, among others. VSTL, which has a contract manufacturing agreement with Jindal Pipes to manufacture and supply finished goods under the brand name Jindal Star, currently sees over 80 per cent of its total turnover coming from this one segment.
VSTL had, in February 2024, made a stellar debut on BSE and NSE, raising Rs. 72.17 crore from the IPO. With a total capacity of 377,000 MTPA, the company supplies its products to western and southern markets in Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka and Tamil Nadu.
VSTL registered an operating income of Rs 996.38 crore for FY2024-25, compared to Rs 1,072.71 crore in FY2023-24. The company’s net profit on a standalone basis stood at Rs 11.77 crore in FY2024-25 vs. Rs 17.72 crore in FY2023-24. This margin improvement was visible owing to the company’s shift towards value-added products as well as volume expansion for ERW tubes.
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