Vibhor Steel Tubes Ltd (VSTL) has officially commenced supply operations from its newly commissioned manufacturing facility in Sundargarh, Odisha, marking a major milestone in the company’s expansion strategy. Developed with an investment of Rs 119.83 crore, the plant adds 1.56 lakh metric tonnes per annum (MTPA) to VSTL’s production capacity, bringing its total installed capacity to 3.77 lakh MTPA across three states. The move is expected to significantly boost the company’s ability to meet rising demand for specialized steel products in Eastern India and beyond.
Key Highlights From The Commissioning
- The Sundargarh plant began full-scale operations in August 2025 after receiving permanent electricity connection in mid-July
- Trial runs were conducted using generator power, and the facility is now fully integrated into VSTL’s supply chain
- The plant is equipped to manufacture high-margin, value-added products including crash barriers, high mast lighting poles, and monopoles
- VSTL now operates three manufacturing units located in Maharashtra, Telangana, and Odisha
Strategic Importance Of The Odisha Facility
- The new plant is designed to cater to infrastructure and industrial development projects across Eastern India
- Its location in Sundargarh offers logistical advantages for reaching markets in Odisha, Jharkhand, West Bengal, and Chhattisgarh
- The facility enhances VSTL’s responsiveness to regional demand and strengthens its export capabilities
- Chairman Vijay Kaushik described the commissioning as a new chapter in the company’s growth journey, emphasizing the focus on premium steel solutions
Product Portfolio And Market Reach
- VSTL’s offerings include ERW black pipes, galvanized pipes, hollow sections, primer-painted tubes, and specialized poles
- Over 80 percent of the company’s turnover comes from contract manufacturing for Jindal Pipes under the Jindal Star brand
- The company supplies to key markets in Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka, and Tamil Nadu
- With the Odisha plant online, VSTL is expected to expand its footprint into Eastern and Northeastern regions
Financial Performance And Growth Outlook
- VSTL reported a 4.29 percent year-on-year rise in standalone net profit for Q1 FY26, reaching Rs 3.14 crore
- Operating income grew to Rs 230.95 crore, supported by strong demand and a higher share of value-added products
- EBITDA rose to Rs 10.26 crore, with earnings per share improving to Rs 1.66
- The company expects demand to accelerate in Q2 and Q3, driven by infrastructure spending and export orders
IPO And Capital Deployment
- VSTL made its stock market debut in February 2024, raising Rs 72.17 crore through its initial public offering
- Funds have been strategically deployed to expand manufacturing capacity and enhance operational efficiency
- The Odisha plant represents a key investment in the company’s long-term growth and profitability roadmap
Conclusion
The launch of supply operations from Vibhor Steel Tubes’ new Odisha plant marks a transformative moment for the company and the region. With enhanced capacity, diversified product offerings, and strategic geographic reach, VSTL is well-positioned to capitalize on India’s infrastructure boom and rising steel demand. As the company continues to focus on innovation and value addition, its latest expansion underscores a commitment to building a resilient, future-ready steel enterprise.
Sources: BusinessWorld India, Machine Maker, OdishaTV, Construction Week Online.
