VRAJ Iron And Steel Board Approves Rs 35 Cr Rolling Mill At Bilaspur Plant
VRAJ Iron and Steel Limited announced a major capacity expansion with Board approval for a new rolling mill at its Bilaspur plant, featuring 150000 tons per annum TMT bar manufacturing capacity at an estimated cost of Rs 35 crores plus GST. The expansion is expected to generate approximately 125% revenue and will be funded through internal accruals, with completion scheduled for Financial Year 2026-27.
*this image is generated using AI for illustrative purposes only.
VRAJ Iron and Steel Limited has announced a major capacity expansion with the establishment of a new rolling mill at its Bilaspur plant. The Board of Directors approved this strategic initiative on February 24, 2026, during a meeting that commenced at 03:30 P.M. and concluded at 04:10 P.M., marking a significant step in the company's growth trajectory. The expansion is expected to generate approximately 125% revenue.
Regulatory Compliance and Disclosure
The company has filed the requisite intimation under Regulation 30 of SEBI (LODR) Regulations, 2015, with both BSE Limited and NSE Limited on February 25, 2026. The disclosure was made pursuant to Para B of Part A of Schedule III of SEBI regulations, ensuring full compliance with listing obligations and disclosure requirements.
| Exchange Details: | Information |
|---|---|
| BSE Security Code: | 544204 |
| NSE Symbol: | VRAJ |
| Filing Reference: | VISL/SE/REG-30/2025-26/32 |
| Board Meeting Date: | February 24, 2026 |
Project Overview
The new rolling mill will manufacture TMT bars with an installed capacity of 150000 tons per annum. The project carries an estimated cost of Rs 35.00 crores plus applicable GST, with the company noting that project costs may vary up to 15% from the estimated amount.
| Parameter: | Details |
|---|---|
| Manufacturing Capacity: | 150000 Tons per annum |
| Product Type: | TMT Bars |
| Location: | Bilaspur Plant |
| Project Cost: | Rs 35.00 Crores (plus GST) |
| Timeline: | Financial Year 2026-27 |
| Expected Revenue Impact: | Approximately 125% |
Current Operations and Capacity Utilization
The company currently operates a facility at Raipur with an existing capacity of 54000 tons per annum. The current capacity utilization stands at 67.22% at the existing Raipur unit, indicating room for growth and the strategic timing of this expansion.
| Operational Metrics: | Current Status |
|---|---|
| Existing Capacity: | 54000 T.P.A at Raipur Plant |
| Capacity Utilization: | 67.22% |
| Proposed Addition: | 150000 Tons per annum |
Financing Strategy
The company has outlined a clear financing approach for the project. The expansion will be funded primarily through internal accruals, demonstrating the company's strong cash position. If additional funding is required, VRAJ Iron and Steel Limited will utilize short-term unsecured loans from promoters up to Rs 10 crores at an interest rate of 7.5% per annum.
Strategic Rationale
The company has identified several key benefits from this expansion initiative:
- Enhanced Production Capacity: Significant increase in finished steel products manufacturing capability
- Operational Efficiency: Improved overall operational performance across facilities
- Revenue Growth: Expected increase in revenue and profitability from expanded operations with approximately 125% revenue generation
- Market Position: Strengthened competitive position in the TMT segment
The project represents a substantial investment in the company's manufacturing infrastructure and positions VRAJ Iron and Steel Limited for enhanced market presence in the steel industry. The expansion is scheduled for completion during Financial Year 2026-27, adding significant capacity to the company's existing operations.
Historical Stock Returns for Vraj Iron and Steel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.76% | -3.47% | -14.46% | -30.86% | -38.09% | -57.50% |
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