While deploying my application's ClientSetup.msi I need to pass the Server IP address as a parameter. I have been advised to use Orca.exe to create MST file. I need command line to do this as it needs to be automated from my Application.
Creating an MST is extremely overkill for just passing a parameter to the install. It sounds like what you actually want is a public Property. Those get passed on the command line like:
msiexec /i path\to\your.msi YOURSERVERIP=0.0.0.0
Then put [YOURSERVERIP]
in the right place in your MSI. I have a video about doing just this using the WiX Toolset.