Vibhor Steel Starts Odisha Plant, Targets Margin Growth

28 Aug 2025 CW Team

Spread across 23.98 acres, the Sundargarh facility was developed with an investment of approximately Rs 1.2 billion and completed within a 30-month timeframe. This new unit raises the company’s total production capacity to 377,000 MTPA, spread over its three manufacturing sites in Maharashtra, Telangana, and Odisha.

Beyond ERW and GI pipes, the new plant will also manufacture value-added products such as crash barriers, power transmission line towers, high mast poles, octagonal poles, and monopoles. These products are expected to significantly enhance the company’s margin profile and market reach.

Vijay Kaushik, Chairman and Executive Director of Vibhor Steel Tubes, remarked, “Commissioning supply from Sundargarh strengthens our production and distribution network, ensuring timely delivery and improved service. The unit’s focus on high-value products will drive margin expansion in the upcoming quarters and enable entry into new markets, including exports.”

For the quarter ending June 2025, the company reported a net profit of Rs 31.4 million on revenues of Rs 2.31 billion. For FY25, it posted revenues of Rs 9.96 billion, slightly below the Rs 10.73 billion recorded in FY24. Standalone net profit for FY25 stood at Rs 117.7 million, compared with Rs 177.2 million in the previous year. The company attributed this performance improvement to a strategic shift towards value-added offerings and increased ERW tube volumes.

With the Sundargarh facility operational, Vibhor Steel aims to capitalise on growing domestic and international demand for engineered steel products while reinforcing its position as a leading manufacturer in the sector.

Vibhor Steel Tubes Limited (VSTL) has commenced the supply of Electric Resistance Welded (ERW) and Galvanised Iron (GI) pipes from its newly commissioned greenfield unit in Sundargarh, Odisha. With an installed capacity of 156,000 MTPA, the plant began operations in July 2025 following the activation of its electricity supply on 11 July.Spread across 23.98 acres, the Sundargarh facility was developed with an investment of approximately Rs 1.2 billion and completed within a 30-month timeframe. This new unit raises the company’s total production capacity to 377,000 MTPA, spread over its three manufacturing sites in Maharashtra, Telangana, and Odisha.Beyond ERW and GI pipes, the new plant will also manufacture value-added products such as crash barriers, power transmission line towers, high mast poles, octagonal poles, and monopoles. These products are expected to significantly enhance the company’s margin profile and market reach.Vijay Kaushik, Chairman and Executive Director of Vibhor Steel Tubes, remarked, “Commissioning supply from Sundargarh strengthens our production and distribution network, ensuring timely delivery and improved service. The unit’s focus on high-value products will drive margin expansion in the upcoming quarters and enable entry into new markets, including exports.”For the quarter ending June 2025, the company reported a net profit of Rs 31.4 million on revenues of Rs 2.31 billion. For FY25, it posted revenues of Rs 9.96 billion, slightly below the Rs 10.73 billion recorded in FY24. Standalone net profit for FY25 stood at Rs 117.7 million, compared with Rs 177.2 million in the previous year. The company attributed this performance improvement to a strategic shift towards value-added offerings and increased ERW tube volumes.With the Sundargarh facility operational, Vibhor Steel aims to capitalise on growing domestic and international demand for engineered steel products while reinforcing its position as a leading manufacturer in the sector.

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