Vishal Nirmiti

India’s railway concrete-sleeper industry has a strong structural demand outlook supported by network expansion, track renewal, freight corridors and higher axle-load requirements. Annual concrete-sleeper consumption by Indian Railways increased from 10.1 million units in FY21 to 16.7 million units in FY24, representing an 18.4% CAGR, and was estimated at 17.9 million units in FY25. D&B projects annual consumption to increase further to 29.4 million units by FY31, creating sustained replacement as well as incremental demand for PSC sleepers.

The key details are:

• Concrete-sleeper consumption increased from 10.1 million units in FY21 to 17.9 million units in FY25

• D&B projects consumption at 19.3 million units in FY26E, 22.5 million units in FY28E and 29.4 million units in FY31E

• Dedicated Freight Corridors and higher axle-load railway networks require heavy-duty PSC sleepers, creating incremental demand beyond routine track replacement

• Indian Railways procurement requires compliance with stringent RDSO and IRS technical specifications, creating qualification and execution barriers for new entrants

India’s mild-steel pipes and tubes market is benefiting from investments across water supply, irrigation, urban infrastructure, oil & gas, industrial projects and renewable-energy infrastructure. Based on the D&B market estimates, the industry expanded from approximately INR 120,350.0 Cr in FY21 to INR 185,090.0 Cr in FY25. The market is projected to reach approximately INR 322,870.0 Cr by FY30, implying an 11.8% CAGR during FY25-FY30.
The key details are:

• Market size: Approximately INR 185,090.0 Cr in FY25, projected to reach INR 322,870.0 Cr by FY30

• Historical market size: Approximately INR 120,350.0 Cr in FY21, indicating substantial expansion over FY21-FY25

• Domestic MS-pipe production increased from 6.1 million tonnes in FY21 to 9.2 million tonnes in FY25 and is projected to reach 15.2 million tonnes by FY30

• Domestic consumption increased from 4.6 million tonnes in FY21 to 7.1 million tonnes in FY25 and is projected at approximately 12.0 million tonnes by FY30

India’s increasing renewable-energy capacity is creating a structural requirement for grid-scale energy storage. Pumped Storage Projects are emerging as one of the principal solutions because they can provide large-scale storage and grid balancing. Such projects require large-diameter, high-pressure steel penstocks and liners, directly aligning with Vishal Nirmiti’s MS-pipe fabrication capabilities.

The key details are:

• Identified PSP potential: Approximately 267 GW across India

• Under construction: Approximately 15.87 GW across 11 projects

• CEA-concurred pipeline: Approximately 8.14 GW across another six projects

• Required pumped-storage capacity is projected to rise from approximately 7.45 GW in FY27 to 26.69 GW by FY32

The railway sleeper, MS pipe and infrastructure fabrication industries face risks from raw-material price volatility, dependence on government infrastructure spending, stringent quality requirements and competition from alternative materials. Steel, cement and other key inputs can experience significant price fluctuations, affecting margins where contracts offer limited pass-through. Railway procurement is also closely linked to tender awards and project execution schedules. At the same time, manufacturers must continuously comply with RDSO, Indian Railways and BIS standards, while environmental requirements may increase compliance and capital costs.

The key risks are:

• Steel and cement prices can fluctuate materially, creating margin pressure where higher costs cannot be immediately passed on to customers

• Railway and infrastructure demand is linked to government budgets, tender awards and project execution timelines, which can create uneven order flows

• Failure to meet stringent RDSO, Indian Railways or BIS specifications can result in rejection of supplies, penalties or loss of vendor eligibility

• Composite sleepers, HDPE/PVC pipes and other substitutes can compete with traditional products, while tighter environmental standards may require additional investment

Vishal Nirmiti operates in segments that are directly linked to government-led infrastructure spending, particularly railway sleepers, MS pipes and infrastructure fabrication. The policy environment remains supportive, with the Government continuing to raise capital expenditure on railways, freight corridors, water infrastructure and domestic manufacturing. Indian Railways has received record capital allocations for network expansion, safety and new lines, while programmes such as Jal Jeevan Mission support sustained demand for pipes and water-distribution infrastructure. In addition, Make in India and domestic procurement preferences for iron and steel products can support local manufacturers participating in government and PSU tenders.

The key policies are:

• Indian Railways has planned INR 2.93 lakh crore of capex for FY27, with spending directed toward capacity expansion, safety, track development and modernisation. This supports long-term demand for railway sleepers and associated infrastructure products

• The Union Budget 2026–27 proposed seven high-speed rail corridors and a new 2,052-km Dankuni–Surat Dedicated Freight Corridor, supporting continued railway network construction and demand for track-related components

• The Government extended JJM until December 2028, with an enhanced total outlay of INR 8.69 lakh crore. Continued investment in rural piped-water infrastructure can support demand for MS pipes and related fabrication products

• Government procurement policy provides preference to domestically manufactured iron and steel products, encouraging local production and creating a supportive environment for Indian steel-product