Sambhv Steel Tubes Private Limited, a subsidiary of Sambhv Steel, has acquired land (in Chhattisgarh) for the establishment of a greenfield project. The company has also expanded its product portfolio by manufacturing specialty alloy steel pipes, including Corten steel pipes, and has increased the installed capacities for ERW (Electric Resistance Welded) and GI (Galvanized Iron) pipes to better meet the rising demand from both domestic and international markets. In an exclusive interview with Tube & Pipe India, Mr. Vikas Goyal, CEO & Managing Director of Sambhv Steel Tubes, shares valuable insights into the company’s recent developments and its ambitious expansion strategies aimed at boosting production capacity across the tube, pipe, and stainless steel segments; driving sustainable growth; enhancing operational excellence and expanding global presence.
Tube & Pipe India: Please share your views on the Indian vis-a-vis the global steel industry. What is the role of the Indian government in the growth of this sector?
Vikas Goyal: The global steel industry is undergoing a transformation, driven by decarbonization, digitalization, and dynamic trade policies. While developed markets are maturing, India is clearly in a growth phase, both in terms of consumption and capacity creation.
The government’s focus on infrastructure, renewable energy, railways, and electric vehicles is further fuelling demand. Initiatives like PLI schemes and the National Steel Policy 2017 have created an enabling environment for domestic players to scale, integrate, and innovate. India is well-positioned to be a global hub for value-added steel and steel products and government-industry collaboration will be the key in realizing this potential.
TPI: What are the major ongoing challenges in the Indian steel industry?
VG: The steel industry is facing few headwinds. Some of them are:
Macroeconomy: With the global economy facing a slowdown, the government and individual spending may slow down as well, affecting demand for steel.
Global demand-supply scenario: Typically, when global demand is high, steel availability in India for domestic consumption gets impacted. The cost of imported raw materials in India, such as iron ore and coking coal can be affected by fluctuations in global demand and supply.
Raw material availability: India is self-sufficient in iron ore, but it has high dependence on imports for coal and scrap. Factors such as regulatory issues, environmental concerns, international trade restrictions and logistical constraints pose challenges to the availability of raw materials. Any disruption in the availability of raw materials can result in increased production costs, decreased profitability and reduced competitiveness for steel manufacturers.
Raw material prices: Raw materials account for ~70% of production cost in the steelmaking process. Iron ore, coal, melting scrap, etc., are the major raw materials used in steelmaking. Any variation in the prices of these raw materials can significantly affect the margins of steelmaking companies, thereby affecting their competitiveness.
Decarbonisation: With the global steel industry moving towards achieving net-zero emissions from its steelmaking process, major countries are imposing restrictions on the trade of steel that does not meet their decarbonisation standards. The European Union (EU) has introduced the Carbon Border Adjustment Mechanism (CBAM) to support its rising climate ambition, which is expected to impact steel imports into the nation.
Trade restrictions negatively affect India’s steel exports, thereby impacting the overall growth of the industry. Domestic steelmakers are making capital investments to upgrade their facilities to produce green steel, in line with the government’s climate targets and to remain competitive in the market.
At Sambhv Steel, we have developed the capability to produce steel directly from ore, and subsequently convert it into our final product, thereby reducing our dependency on the external market and allowing greater control over quality and cost.
TPI: How can these challenges of the industry be addressed? How is your company contributing towards this transition?
VG: Addressing these challenges needs a multi-pronged approach.
Firstly, the steel industry needs to enhance raw material security by adopting backward integration. At Sambhv Steel, we have developed the capability to produce steel directly from ore, and subsequently convert it into our final product such as steel pipes and tubes, and stainless steel coils. This reduces our dependency on the external market and allows greater control over quality and cost.
Secondly, in order to reduce input cost, especially power cost, we have to promote captive renewable energy generation. We have set up a 25MW captive power plant to optimize our power cost.
The industry also needs to strengthen logistics and infrastructure by upgrading last-mile connectivity. At Sambhv Steel, we are leveraging our natural geographical advantage. Being located in the central region of India, we enable efficient pan-India distribution and quicker access to key demand centres.
Lastly, the industry must accelerate decarbonisation by offering incentives on green steel adoption, and encouraging R&D for energy efficient processes. We, at Sambhv Steel, have invested in sustainable energy practices like installing a 16MW captive power plant from renewable source and Waste Heat Recovery Boiler (WHRB), reducing our environmental footprint
TPI: Can you tell us about the recent developments at your organization?
VG: Over the past 12 months, we have achieved significant milestones that have expanded our production capacities, and broadened our product portfolio. We have increased our installed capacity of ERW and GI pipes to increase our ability to meet rising domestic and international demand. We have also expanded the production capacities of our intermediate products, including captive power generation, striving to achieve greater self-reliance.
We have manufactured specialty alloy steel pipes, such as corten steel pipes to further diversify our product offerings, and have also introduced value-added products like pre-galvanized (GP) coils and pipes which are widely used across diverse industries particularly in coastal regions.
Further, we have also entered into the stainless steel segment with integrated production of stainless steel flat products.
Our subsidiary, Sambhv Steel Tubes Private Limited has acquired land, where we are planning to commission a greenfield project, with one of the critical machinery (HR Mill) already procured and in process of being imported. We are also proud to have been officially certified as a Great Place to Work® in 2025.
TPI: Brief us about your specialized steel products along with their USPs. Where do your products find their applications?
VG: We specialize in manufacturing ERW steel pipes and tubes and stainless steel coils offering a range of size, thicknesses, and value added options tailored to customer needs.
Our USPs include end-to-end customization, quick turnaround time, strategic geographic location, advanced galvanizing unit, specialized alloy steel capabilities, and captive and sustainable power infrastructure.
With control over the end-to-end supply chain, we offer customization in terms of size and thickness striving to ensure that each product aligns with our customer’s requirement. Further, our backward integration strategy minimizes reliance on external markets for raw materials (such as HR coils), and provides our company with the ability to fulfil orders in faster lead times. Situated in the central part of India, we are able to achieve logistics and supply chain efficiency, enabling timely delivery across diverse markets.
We have set up a galvanizing line based on advanced technology ensuring superior coating quality with less consumption of Zinc. We also manufacture alloy steel pipes, including Corten steel pipes which expand our product basket to meet industry specific needs. Lastly, our captive power plant that includes a Waste Heat Recovery Boiler (WHRB) system enables us to conserve energy as no fuel is required for power generation.
Our steel pipes, tubes including GP pipes and stainless steel coils are integral to a wide range of critical sectors. Key application areas include architecture, building, and construction which include modern building frames, pre-fabricated buildings, purlins, fencing, handrails and industrial and manufacturing applications. Further, these products are used in automobiles, railways, and transport (ART).
Steel pipes and tubes are also solar energy sector products, where they are utilized in the fabrication of module mounting structures for solar panels.
The urban infrastructure such as airports, telecom towers, transmission poles, signage and display structures etc. and the general engineering such as the construction of HVAC systems, fire safety systems, electrical panels, cable trays etc also use steel products. Lastly and most importantly agriculture uses steel pipes and tubes for water pipeline and irrigation systems, and manufacturing of agriculture equipment like tractors, cultivators etc.
Also Read: Vardhman Special Steels Plans to Increase Rolling Mill Capacity to 270,000 TPA
TPI: What are your future growth plans or investments aimed at strengthening your market position?
VG: As we look to the future, our focus remains firmly on expanding capacities, driving sustainable growth, enhancing operational excellence and expanding our global presence.
Our strategic priorities include capacity expansion of our pipes and tube segment with backward integration, as well as our stainless steel segment from our greenfield project. In addition to it, we also plan to increase our international footprint, and focus on renewable energy sources including solar power which will further reduce green-house gas emissions and carbon dioxide emissions, thereby reducing our power costs and enhancing operational sustainability.
Our integrated approach to capacity expansion, global outreach, and sustainable energy adoption positions us for long-term growth, improved operational efficiency, and a reduced environmental footprint—reinforcing our commitment to responsible and future-ready business practices.
Disclaimer
SAMBHV STEEL TUBES LIMITED is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its Equity Shares and has filed the draft red herring prospectus dated September 30, 2024 and the corrigendum dated November 28, 2024 (“DRHP”) with the Securities and Exchange Board of India (“SEBI”), BSE Limited and National Stock Exchange of India Limited. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” of the red herring prospectus, when filed. Potential investors should not rely on the DRHP for making any investment decisions.
For the preparation of the report, CRISIL MI&A has relied on third party data and information obtained from sources which in its opinion are considered reliable. Any forward-looking statements contained in the report are based on certain assumptions, which in its opinion are true as on the date of the report and could fluctuate due to changes in factors underlying such assumptions or events that cannot be reasonably foreseen. The report does not consist of any investment advice and nothing contained in the report should be construed as a recommendation to invest/disinvest in any entity. The industry report is prepared for use in the Offer Documents to be filed by the Company with the RoC, SEBI and the Stock Exchanges in India.
