Vibhor Steel Tubes Ltd., a prominent manufacturer of steel pipes and tubes, has initiated trial production at its new plant in Sundargarh district, Odisha, as of March 1, 2025. The new facility, with a capacity of 120,000 metric tons per annum (MTPA), is currently operating with generators. Full commercial production is expected to begin by the end of March 2025 once the electricity connection is fully established.
The new plant covers 23.98 acres and has a total project cost of Rs. 119.83 crores, funded through a mix of debt and internal resources. Once fully operational, the plant will produce a range of products, including crash barriers, high mast lighting poles, octagonal poles, and monopoles. This expansion will also help the company increase its market presence in eastern India.
Vijay Kaushik, Chairman and Executive Director of Vibhor Steel Tubes, expressed his enthusiasm about the development. He said, “This is a major milestone in our 30-year journey. Despite facing challenges, our team’s dedication and expertise have helped us reach this point. We look forward to full-scale production, which will bring value to our stakeholders in the coming financial year.”
The project faced delays mainly due to difficulties in securing an electricity connection from contractors and the Odisha Industrial Infrastructure Development Corporation (IDCO). The company has worked closely with the authorities to expedite the process.
Vibhor Steel Tubes specializes in the manufacturing, export, and distribution of a wide range of steel pipes and tubes. These include ERW black pipes, galvanized pipes, hollow sections, and primer-painted pipes, which cater to industries such as construction, agriculture, and general manufacturing. The company also operates two other plants in Maharashtra and Telangana, with a combined capacity of 221,000 MTPA.
In its financial report for Q3 FY25, Vibhor Steel Tubes posted a net profit of Rs. 3.43 crore, marking a 287% increase from the previous quarter. Operating income for the quarter stood at Rs. 247.25 crore, slightly down from the same period last year, while EBITDA for Q3 was Rs. 9.81 crore. For the nine months ending December 31, 2024, the company’s net profit was Rs. 7.34 crore, compared to Rs. 12.83 crore during the same period in 2023. Operating income for the same period reached Rs. 708.08 crore.
The company maintains a contract manufacturing agreement with Jindal Pipes, producing and supplying products under the “Jindal Star” brand, which accounts for over 80% of its total revenue. Additionally, Vibhor Steel Tubes has launched new products, including the fabrication and galvanizing of structures for power transmission, substation work, railway electrification, telecom services, and railway overbridges.
Founded two decades ago, Vibhor Steel Tubes is a well-established manufacturer, exporter, and supplier of steel pipes and tubes, serving various heavy engineering industries across India. Since 2003, the company has had a successful partnership with Jindal Pipes Ltd., producing goods under the “Jindal Star” brand.
