Steel the Show—Vibhor’s Odisha Launch Strengthens National Footprint

Image Source: Daily Pioneer

Vibhor Steel Tubes Ltd (NSE: VIBH.NS) has initiated commercial production in its Unit III plant in Sundargarh, Odisha, as a significant move towards the expansion plan of the company. The ₹119.83 crore greenfield facility is expected to significantly enhance Vibhor's capacity and product basket in eastern India.

1. Facility Overview

The new plant measures 23.98 acres of land and an installed capacity of 120,000 metric tonnes per annum (MTPA).
It will be manufacturing value-added steel products such as crash barriers, high mast lighting poles, octagonal poles, and monopoles.
The plant had earlier commenced trial production in March 2025, with commercial operations fully underway following power infrastructure completion.

2. Strategic Importance

The Odisha facility expands Vibhor's footprint in east India, facilitating faster delivery and reduced logistics costs for domestic customers.
It adds to the company's existing plants at Sukheli, Maharashtra (125,000 MTPA) and Mehboob Nagar, Telangana (96,000 MTPA).
The addition comes on the back of Vibhor's venture into infrastructure-focused steel solutions, with opportunities in sectors like power transmission and railway electrification.

3. Financial and Operational Outlook

Vibhor Steel Tubes saw its Q3FY25 net profit rising sequentially by 287% to ₹3.43 crore on the back of improved volumes and product mix.
Over 80% of revenue for the company now comes from its contract manufacturing pact with Jindal Pipes for the Jindal Star brand.
Revenue contribution of Odisha unit would be substantial from FY26 onwards, enhancing margins through value-added product segments.

Sources: Construction Business Today, Odisha Diary, Machine Maker