“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.” Vijay Kaushik, Chairman and Executive Director, Vibhor Steel Tubes
Vibhor Steel Tubes Limited, a Hisar-based maker of high-quality steel tubes and pipes, announced the successful commencement of trial production at its Unit III plant in the Sundargarh district, Odisha, on 1st March 2025. The 120,000 MTPA plant’s trial production commenced using generators, and the company expects commercial production in the unit to begin at the end of March 2025, with the installation of an electricity connection.
The Unit III at Sundargarh is located at a land parcel of 23.98 acres and accounted for a total project cost of ₹119.83 crore – funded through a blend of debt and internal accruals. Upon commencement of commercial production (targeted by the end of March 2025), Unit III, with an installed capacity of 120,000 MTPA, will also produce value-added products, including crash barriers, high mast lighting poles, octagonal poles, and monopoles. Located in Odisha, Unit III will also enable the company to tap new market demand across eastern India more efficiently.
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 FY2025 -26 onwards.”
The plant’s commissioning witnessed unprecedented delays due to the need to secure the electricity connection from contractors and the Odisha Industrial Infrastructure Development Corporation (IDCO). Since then, Vibhor Steel has coordinated closely with authorities to expedite the electricity connection process.
The company specializes in the manufacture, export, and distribution of steel pipes and tubes. It produces a diverse portfolio that includes ERW black pipes, galvanised pipes, hollow sections, and primer-painted pipes, catering to the construction, domestic, agricultural, and industrial sectors. The company operates two 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.
In February 2025, the company also posted a standalone net profit of ₹3.43 crore for the quarter ended December 31, 2024. On a sequential basis, net profit is up by 287 per cent compared with ₹0.88 crore in Q2FY25. Operating income on a standalone basis decreased by nearly 1.5 per cent at ₹247.25 crore during the quarter under consideration as against Rs 251 crore last year. EBITDA stood at ₹9.81 crore in Q3FY25. For the nine months ended December 31, 2024, net profit was at ₹7.34 crore, as against ₹12.83 crore in the same period last year. Operating income stood at ₹708.08 crore during the period under review.
VSTL, which has a contract manufacturing agreement with Jindal Pipes to produce and supply finished goods under the brand name Jindal Star, currently derives over 80 per cent of its total turnover from this single segment.
The company launched a new product, specifically the fabrication and galvanising of structures
required for power transmission lines and substations (33 kV to 400 kV), railway electrification, rural electrification, telecom services, and railway overbridges, among others.
