Vishal Nirmiti IPO

Vishal Nirmiti Limited IPO Strengths

Established Financial Resilience and Profitability

Vishal Nirmiti Limited possesses a robust financial track record, demonstrating consistent revenue growth and strong profitability. This financial strength is validated by audited statements and a healthy cash flow. The company’s resilience provides the capacity to adapt to market changes and execute large-scale contracts confidently, ensuring long-term stability and reliability for its partners and projects.

Integrated and Client-Centric Business Model

The company’s business model focuses on building long-term client relationships through transparent communication and on-time delivery. It manages the complete project lifecycle in-house, minimizing third-party reliance for superior cost, quality, and timeline control. Strategic vendor partnerships and modern management tools ensure efficient resource utilization and consistent operational excellence across all projects.

Diversified Portfolio for Risk Mitigation

Vishal Nirmiti maintains a strategically diversified presence across PSC sleepers, MS pipes, construction services, and infrastructure projects. This diversification creates multiple, resilient revenue streams, reducing dependence on any single sector. It enhances the company’s agility, enables effective risk management, and allows it to offer integrated, end-to-end solutions to a broad client base.

Pan-India Execution Capability

The company demonstrates a proven ability to successfully execute projects across diverse geographies and terrains. Supported by multiple manufacturing facilities and a flexible operational strategy, Vishal Nirmiti can scale quickly into new regions. This geographical flexibility minimizes logistics costs and delivery times for clients, establishing the firm as a reliable, nationwide partner.

Specialized Expertise in Sleeper Manufacturing

Vishal Nirmiti has deep expertise in manufacturing a wide range of precision-engineered sleeper types, including mono-block, twin-block, and turnout sleepers. By integrating optimized production, in-house quality control, and certified personnel, the company delivers high volumes of critical railway components at competitive costs, meeting the stringent demands of national rail infrastructure.

Efficient MS Pipe Production System

The company’s MS pipe business model is designed for cost-efficiency, high output, and consistent quality. It leverages modern production processes, robust supply chain management, and strategic plant locations. Bulk procurement and embedded quality control at every stage enable Vishal Nirmiti to deliver high-quality products with speed and cost competitiveness for various infrastructure and industrial applications.

End-to-End Infrastructure Project Mastery

Vishal Nirmiti is capable of handling the full lifecycle of complex infrastructure projects, from feasibility and design to construction and commissioning. Its strong in-house technical team, comprising civil, mechanical, and structural engineering expertise, ensures projects are delivered on time, on budget, and to the highest quality standards, meeting all regulatory and client expectations.

More About Vishal Nirmiti Limited

Vishal Nirmiti Limited is recognised for its expertise in on-site fabrication of Mild Steel (MS) pipes, especially large-diameter pipes, through automatic longitudinal submerged arc welding. This approach minimises transportation and logistics costs, ensuring efficiency and precision. With over two decades of industry experience, the company has successfully fabricated more than 10,00,000 metric tonnes of MS pipes to date.

Its manufacturing capabilities extend beyond fabrication to include anti-corrosive and protective coatings such as sandblasting, painting, cement mortar lining, and guniting. The company primarily produces hot-rolled MS pipes in circular shapes up to 7,500 mm diameter and 3 mm to 36 mm thickness, serving diverse sectors including infrastructure, hydropower, lift irrigation, and water supply projects.

Service Verticals

Sub-Contracting Services

Vishal Nirmiti Limited executes sub-contracting projects for renowned infrastructure and construction firms such as Samruddhi Industries, Kalpataru Projects International Limited, and Raj Infrastructure Development (India) Pvt. Ltd. These projects include the manufacturing of pre-cast elements, prestressed products, and MS liners for major civil, irrigation, and infrastructure developments. The company also produces precast concrete noise barriers and cable ducts for the Mumbai–Ahmedabad High-Speed Rail Corridor.

Power Generation through Windmills

As part of its renewable energy initiatives, Vishal Nirmiti operates wind turbine generators (WTGs) in Maharashtra. Power generated from these assets is sold to electricity distribution companies under long-term power purchase agreements, contributing to sustainable revenue.

Scrap Sale and Leasing Activities

The company systematically disposes of scrap generated during production, selling it to third-party recyclers, which enhances efficiency and adds supplementary income. Additionally, under a Build-Operate-Transfer (BoT) model with the Solapur Municipal Corporation, it leases commercial office units and earns rental income.

Revenue Distribution

For FY 2025, Vishal Nirmiti derived 76.18% of its revenue from manufacturing and 23.82% from services. Its top five customers, including Indian Railways, Larsen & Toubro, Samruddhi Industries, and Kalpataru Projects, consistently contributed over 85% of total revenue, showcasing strong client relationships and recurring business opportunities.

Industry Outlook

The Indian steel pipes market reached approximately 13.56 million tons in 2024, and it is projected to grow to about 27.76 million tons by 2033, representing a CAGR of around 7.65% during 2025-2033. Concurrently, the broader steel pipes & tubes market in India is estimated at USD 32.88 billion in 2023 and expected to grow at a CAGR of about 6.43% to reach USD 37.69 billion by 2030.

Growth Drivers

• Infrastructure investment (railways, highways, water supply, irrigation) fuels demand for large-diameter welded and welded-fabricated pipes.

• Growth of oil & gas, pipelines, petrochemicals, and industrial projects creates demand for seamless and high-strength welded steel pipes.

• Urbanisation and renewable energy deployment (hydro power, wind) expand requirements for water supply, pump-storage, and large MS/liner pipe fabrication.

• Government focus on “Make in India”, import-substitution, local fabrication and manufacturing gives domestic manufacturers a competitive edge.

Relevant Product Segments

For companies manufacturing mild steel (MS) pipes, large diameter liners, PP (pre-stressed) concrete products and fabrication services:

• The MS pipes segment in India is set for strong growth owing to large diameter, heavy-walled applications in hydro-mechanical, irrigation and civil engineering.

• The seamless/welded pipe segments for oil & gas and water-transport functions are expected to grow at moderate to strong rates, derived from the overall pipe market CAGR above.

Outlook Summary

The Indian steel pipes & tubes industry presents a favourable growth outlook with double-digit volume expansion (volume CAGR ~7.6%) and strong value growth (~6-7% CAGR) through the remainder of the decade. For firms engaged in large-diameter MS pipes, fabrication, water/irrigation and infrastructure segments, the tailwinds are especially strong. As infrastructure, power, rail and water-project investments scale, companies positioned across fabrication plus heavy steel-pipe supply chains stand to benefit significantly.

How Will Vishal Nirmiti Limited Benefit

• The surge in water supply, irrigation, and hydro power projects will drive higher demand for on-site fabricated MS pipes — a core area of Vishal Nirmiti’s expertise.

• Expanding government infrastructure spending supports recurring contracts from major public and private clients.

• The growth of renewable energy, particularly hydro and wind, enhances opportunities in penstock pipes and related fabrication works.

• Increasing focus on local fabrication under “Make in India” strengthens the company’s competitiveness and contract pipeline.

• Rising industrial activity ensures steady demand for coated and heavy-walled pipes, reinforcing Vishal Nirmiti’s revenue stability and capacity utilisation.

Peer Group Comparison

Name of the Company	Face Value (₹)	Revenue (₹ in million)	EPS (₹)	P/E Ratio	RONW (%)	NAV (₹)
Vishal NirmitiLimited	10	31,85.17	11.94	[●]	47.63	30.87
Peer Group
GPT Infraprojects Limited	10	11,880.71	6.55	17.10	14.31	42.83
Indian Hume Pipe Company Limited	10	14,912.31	105.93	3.6	40.54	261.32

Key Strategies for Vishal Nirmiti Limited

Deepen Focus on Current Business Verticals

Vishal Nirmiti Limited (VNL) will concentrate on growing its core manufacturing of PSC sleepers and MS pipes, alongside its services business. The company intends to increase market share and strengthen customer loyalty by improving efficiency, reducing costs, and leveraging its specialization in the rail infrastructure sector and large-diameter MS pipes for irrigation projects.

Maintaining Profitability and Financial Stability

VNL aims to sustain a healthy financial position by ensuring continued profitable growth and financial discipline. The strategy focuses on expanding revenue while protecting margins, maintaining strong cash flow and balance sheet ratios, and prioritizing high-ROI investments. It will avoid over-leveraging and unsustainable growth, emphasizing long-term value creation.

Enhance Automation for Cost Effectiveness

The company is committed to improving cost and operational efficiency by enhancing the automation and mechanization of its internal manufacturing processes. VNL believes investing in automation solutions will lead to higher productivity, lower employee costs, and reduced rework, sustaining a long-term cost advantage in both its manufacturing and construction activities.

Targeted Penetration of New Geographies

VNL plans to expand its market presence into additional states across India, subject to viability and market research. This strategy aims to reduce concentration risk, enhance market reach, and cater to higher demand. The company will establish necessary infrastructure, talent, and compliance to effectively increase its customer base and brand visibility in new high-potential regions.

Innovation and Adoption of Modern Technologies

VNL will strategically invest in innovation and modern technologies to enhance efficiency, productivity, and deliver superior output. The plan includes utilizing spiral welded pipe technology and integrating cutting-edge tools to streamline workflows. This continuous technological upgrade is imperative for maintaining high quality, staying competitive, and reducing time-to-market.

Focus on High-Value and Scalable Projects

The company’s growth strategy is centered on bidding for higher-value projects that offer clear commercial and strategic benefits. VNL intends to leverage its expertise, such as in precast concrete for the High-Speed Rail corridor, by implementing a project evaluation framework to select opportunities with a balance of high reward and low risk for profitability and scalability.