Steel is at the heart of India’s construction and infrastructure development, and Raipur’s steel industries are making significant contributions to this growth. Established in 2017, Sambhv Sponge Power Private Limited’s journey has been marked by knowledge, unwavering ethics, and remarkable success with a mission to excel in the steel sector. Despite a background in plastic manufacturing, venturing into steel production was a bold step. Sambhv’s indelible market footprint is characterized by Raipur’s 90 acres state-of-the-art vertically integrated plant from sponge iron production to steel pipe manufacturing. With approximately INR 1,000 Crore revenue in FY 22-23 and finished goods capacity of 4,20,000 MTPA, Sambhv is currently in an expansion phase, targeting revenue potential of approximately INR 2,300 Crores; 2,00,000 MTPA capacity addition in a span of 2 years; an increase in the number of distributors; state-wise expansion in plant capacity; and the establishment of own stockyards in major parts of India. They have recently started an export business unit to cater international customer demands, inaugurated their Jammu stockyard, launched its latest product- Sambhv Steel Door Frame, and are on the brink of launching a pre galvanised pipe plant.
Sambhv’s Journey, Major Milestones, and Crucial Achievements
We embarked on our journey with a vision to cater to mainstream businesses and went on to establish Sambhv Sponge Power Private Limited in the year 2017. Since in the past we had already developed 3 companies which were mainly involved in the steel sector, it wasn’t a new venture for us to explore, but although we were stepping up from one stage to another, it was necessary for us to understand the broader market and its needs which led to the journey that we have undertaken and gained new insights that have made us more accustomed to the customer requirements domestic as well as globally.
The Sambhv journey began with the strategic acquisition of a struggling sponge iron unit in Raipur, transforming it into a profitable venture from the very first year. Within the span of the first 3 to 4 years, it became a fully integrated steel manufacturing unit. Key milestones include the establishment of our integrated plant, marked by the production of sponge iron, blooms, HR coil, CR coil, and ERW pipes. Sambhv’s rapid growth and sustained profitability underscore our ability to overcome challenges and successfully diversify.
This company is the flagship company of our group with approximately INR 1,000 Crore revenue in FY 22-23 with the entire group’s turnover being approximately INR 2,450 Crores in FY 22-23. We have the vision to fulfil the demands and cater to the market needs with the best quality at the most competitive prices. We have continuously strived to become better as a team whose skills, craftsmanship and dedication aim to bridge any gap between what we commit and deliver in the first place. We would always carry on these values and ethics forward and make sure that these values are passed on to our offerings and to each and every stakeholder.
“Currently in an expansion phase, our finished goods capacity has increased up to 4,20,000 MTPA which reflects the positive reception in the market. Further another 2,00,000 MTPA capacity will be added in a span of 2 years.”
Product Portfolio and Applications
Sambhv’s distinguished product portfolio includes ERW steel pipes, crafted meticulously within our vertically integrated plant in Raipur. Our operations span the production of sponge iron, blooms, HR coil, CR coil, and ERW pipes, catering to a diverse range of industries. These products find applications in the infrastructure industry as handrails, gate, building exterior fabrication works, scaffolding pipe, agricultural equipment, pre-engineered buildings, industrial & engineering parts, and water supply with showcasing their versatility and quality.
Sambhv Steel, recently launched its latest product: Sambhv Steel Door Frame, which is deemed to be a one-of-a-kind, robust door frame, made of premium grade HR coils. Following the launch, the steel giant has geared itself to producing a whopping 3000 to 5000 metric tonnes per month of premium quality door frames, specifically designed to ensure security to enhance the safety of our houses. Moreover, with this initiative, Sambhv Steel hopes to complement another of its well-loved products, Steel Door Frames, and tough steel door frames that are fire and termite-resistant, sustainable, and easy to install.
Infrastructure Setup, Manufacturing Capabilities and Production
Operating from our state-of-the-art vertically integrated plant in Raipur, which is spreading in more than 90 acres of land, Sambhv Sponge Power Private Limited engages in the production of sponge iron, blooms, HR coil, CR coil, and ERW pipes. Currently in an expansion phase, our finished goods capacity has increased up to 4,20,000 MTPA which reflects the positive reception in the market. Further another 2,00,000 MTPA capacity will be added in a span of 2 years. Our manufacturing process, involving high-grade iron ore fines and pellets, ensures the production of top-notch products. With robust quality tube pipe mills in Raipur boasting several sizes of requirements by variety of applications, our commitment to excellence shines through.
“The ongoing capex plan, with a target revenue potential of approximately INR 2,300 Crores, reflects our unwavering commitment to growth.”
Market Footprint and USP
Sambhv’s indelible market footprint is characterized by a fully integrated operation from sponge iron production to steel pipe manufacturing. We are one of its kind players in India who are manufacturing steel pipe from narrow width HR coils. Our unique selling proposition (USP) lies in being the sole player in India with an integrated steel pipe plant. This integration results in higher EBITDA/tonne, a strategic plant location, and cost savings through a captive power plant. Superior cost structures, enhanced margins to distributors, and efficient production from narrow-width HR coil contribute to our distinctive competitive edge. With the latest AGC technology mill, we can provide gauge thickness tolerance of around 0.05 mm which is at par with the best industry standards.
With over two decades of rich experience in steel making, Sambhv produces high quality ERW steel pipes (black & galvanized) of various models, specifications & lengths in accordance with all major Indian standards (IS- 3601, IS-1079, IS-1161, IS-1239, IS-2830, IS-2062, IS-4270, IS-3183, IS-9295 etc) and international standards of ASTM, DIN & EN etc. We are registered with major public sector companies of India and we have executed various prestigious government projects in India. We have established a strong channel partner network in India which is above 1000 in numbers to cater our domestic & international customer demands.
Ongoing or Upcoming Developments
Sambhv Sponge Power Private Limited is in an exciting expansion phase, with plans for rigorous exports in black, galvanised & pre galvanised pipes. By adding some product lines, our total capacity has increased up to 4,20,000 MTPA. The pre-galvanised pipe making facility will produce approximately 1,00,000 MTPA in coming months. Our vision includes an increase in the number of distributors, the establishment of our own stockyard, and state-wise supplies. Recently we have inaugurated our Jammu stockyard to cater nearby areas where Sambhv brand demand is increasing on a daily basis. This facility will give our end customer an edge of quick choice for a variety of products at one place. Similarly, we are adding more stockyards in various locations to meet customer demand on time.
“This company is the flagship company of our group with approximately INR 1,000 Crore revenue in FY 22-23 with the entire group’s turnover being approximately INR 2,450 Crores in FY 22-23.”
Comment on the Indian Tubes and Pipes Industry
The Indian government is increasing its capex by more than 35% with new developments in housing, infrastructure & commercial building which includes projects of new railway stations & airports. Hence the data foretells a promising outlook for the Indian steel pipe industry, particularly in the structural steel tube segment. Driven by government infrastructure initiatives and increased construction activities, the industry is poised for exponential growth. The shift to structural steel tubes, with advantages like a high strength-to-weight ratio and environmental friendliness, further propels this growth. Anticipating a tenfold expansion, Sambhv Sponge Power Private Limited is well-positioned to contribute significantly to this flourishing sector.
Future Long-Term and Short-Term Plans
Sambhv Sponge Power Private Limited’s vision extends to both the short and long term. Our future plans encompass an increase in the number of distributors, state-wise expansion in plant capacity, and the establishment of our own stockyards in major parts of India. We have recently started an export business unit to cater international customer demands. The ongoing capex plan, with a target revenue potential of INR 2,300 Crores, reflects our unwavering commitment to growth. In the short term, we prioritize elevating customer service and product quality. Additionally, we are on the brink of launching a pre galvanised pipe plant, marking a pivotal step in diversifying our offerings. Looking ahead, our long-term vision includes venturing into stainless steel production and pre galvanised pipes, solidifying our position as industry leaders.