Vibhor Steel Tubes Ltd has successfully commenced trial production at its Unit III plant in Sundargarh, Odisha, marking a significant step in its expansion strategy. The 120,000 MTPA facility began trial operations using generators, with commercial production expected to start by the end of March 2025 following the installation of the electricity connection.
The Rs. 119.83 crore project, spread across 23.98 acre, has been financed through a mix of debt and internal accruals. Once fully operational, the new plant will focus on manufacturing value-added steel products, including crash barriers, high mast lighting poles, octagonal poles, and monopoles, catering to growing demand in eastern India.
Vijay Kaushik, Chairman and Executive Director, Vibhor Steel Tubes, stated, “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 operates two existing manufacturing units in Sukheli, Maharashtra (125,000 MTPA) and Mehboob Nagar, Telangana (96,000 MTPA). In Q3FY25, Vibhor Steel Tubes reported a net profit of Rs 3.43 crore, reflecting a 287 per cent sequential growth from Rs 0.88 crore in Q2FY25. The company’s revenue is significantly driven by its contract manufacturing agreement with Jindal Pipes under the Jindal Star brand, which contributes over 80 per cent of its turnover.
Looking ahead, Vibhor Steel Tubes is diversifying its portfolio with a new fabrication and galvanization product line, targeting critical infrastructure sectors such as power transmission and railway electrification, further strengthening its market presence.