VMS TMT Limited is engaged in the manufacturing of Thermo Mechanically Treated (TMT) Bars at its integrated facility located in Bhayla Village, Ahmedabad, Gujarat. TMT Bars are widely used in the construction industry due to their strength, ductility, and corrosion resistance, making them a preferred choice for infrastructure and real estate projects.

Business Operations

The Company primarily operates in Gujarat (excluding Saurashtra and Kutch), which contributes nearly 97–99% of its revenues from operations across FY23, FY24, FY25, and Q1FY26. TMT Bars contribute the majority of revenue, ranging between 91% and 97%, with the balance coming from the sale of scrap, binding wires, and billets. Sales are driven mainly through the retail segment (up to ~87% in Q1FY26), complemented by institutional customers.

Backward Integration & Sustainability

In September 2024, the Company completed backward integration of its CCM division, enabling production directly from scrap. Major raw materials include scrap, manganese, coal, dolomite, limestone, and bentonite, sourced domestically (majorly from Gujarat) and internationally (Hong Kong, UAE, Kuwait, Australia, Singapore, etc.). To reduce power costs, the Company is setting up a 15 MW solar power plant in Gujarat for captive use, under an MoU with Prozeal Green Energy Limited, furthering its sustainability agenda.

Distribution & Sales Network

i) Distribution network includes 3 distributors and 227 dealers as of July 31, 2025.

ii) The state is divided into Central, North, and South Gujarat zones, each managed by a distributor for optimal market penetration.

iii) Over 50 trucks managed by third-party logistics partners ensure doorstep delivery, providing a strategic edge in customer service.

iv) Retail license agreement with Kamdhenu Limited (since November 7, 2022) allows the Company to sell TMT Bars under the Kamdhenu Brand in Gujarat (excluding Saurashtra and Kutch).

Competitive Strengths

i) Strategic Positioning: Strong presence in Gujarat, benefiting from growth in the steel bar and rods industry.
ii) Large Distribution Network: Long-standing customer relationships with high retention (4 of top 10 customers associated for over 3 years).
iii) Integrated Infrastructure: Backward integration reduces costs and dependence on external billet suppliers.
iv) Sustainability Initiatives: Solar power project to reduce electricity costs and carbon footprint.
v) Consistent Financial Growth: High-capacity utilization, operational efficiency, and cost optimization drive resilience against sector cyclicality.