Vibhor Steel Tubes Limited, a leading manufacturer of high-quality steel tubes and pipes, announced the successful commencement of trial production at its Unit III plant in the Sundargarh district, Odisha. The 120,000 MTPA plant’s trial production commenced using generators, and the company expects commercial production to begin by the end of March 2025, upon the completion of the electricity connection installation.
The Unit III facility in Sundargarh is situated on a 23.98-acre land parcel and represents a total project cost of Rs. 119.83 crores, funded through a combination of debt and internal accruals. Upon the commencement of commercial production, targeted for the end of March 2025, Unit III will produce value-added products, including crash barriers, high mast lighting poles, octagonal poles, and monopoles. Located in Odisha, Unit III will enable the company to more efficiently tap into new market demand across eastern India.
Commenting on the development, Vijay Kaushik, Chairman and Executive Director of Vibhor Steel Tubes, said, “We are elated to have begun a new chapter in our journey of the past three decades. The odds were stacked against us, but as a team, we were able to overcome them through knowledge, quality execution, and persistence. We look forward to the commencement of commercial production, which will enable us to deliver value for our stakeholders from FY 2025-26 onwards.”
The company specializes in the manufacture, export, and distribution of steel pipes and tubes. Its diverse product portfolio includes ERW black pipes, galvanized pipes, hollow sections, and primer-painted pipes, catering to the construction, domestic, agricultural, and industrial sectors. The company operates two existing manufacturing facilities: one in Sukheli, Maharashtra, with an installed capacity of 125,000 MTPA, and another in Mehboob Nagar, Telangana, with an installed capacity of 96,000 MTPA.
Vibhor Steel Tubes reported a robust financial performance in Q3FY25, achieving a net profit of Rs 3.43 crore, a notable 287% sequential surge, compared to Rs 0.88 crore in Q2FY25 . While the company maintains a substantial revenue stream from its contract manufacturing agreement with Jindal Pipes under the Jindal Star brand, contributing over 80% to its turnover, it is strategically expanding its portfolio. The launch of a new product line, specializing in the fabrication and galvanization of structures for critical infrastructure projects, including power transmission and railway electrification, signals a move towards diversification and enhanced market reach.
