Sambhv Steel aims to become a global leader in the steel industry and one of the largest global pipe manufacturers by 2030. This was revealed by Mr. Vikas Kumar Goyal, Director, Sambhv Steel, during his interaction with Tube & Pipe India.
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Tube & Pipe India: Kindly walk us through the business journey of Sambhv Steel Pipes & Tubes, highlighting major milestones and crucial achievements.
Vikas Kumar Goyal: Established in 2017, the journey of our flagship company Sambhv Steel has been marked by knowledge, unwavering ethics, and remarkable success with a mission to excel in the steel sector. Despite having a background in plastic manufacturing, venturing into steel production was a bold step. It all 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 a span of 3-4 years, it became a fully integrated steel manufacturing unit. Sambhv’s rapid growth and sustained profitability has underscored our ability to overcome challenges and successful diversification. It is the flagship company of our group with approximately INR 1,300 crore revenue in FY 23-24.
TPI: Please give us information about your robust infrastructure and manufacturing capabilities.
VKG: Operating from our state-of-the-art vertically integrated plant in Raipur, spread over 90 acres, Sambhv Steel is a leading producer of sponge iron, blooms, HR coil, CR coil and ERW pipes. At the state-of-the-art steel melting shop in our plant, Sambhv integrates direct reduced iron (DRI) and ferroalloys, using oxygen generated from an in-house plant to make liquid steel. This process, meticulously monitored by highly skilled engineers, ensures the production of high-quality blooms that exhibit superior strength, pressure tightness and excellent heat & electrical conductivity. We have earned a significant place in our category, boasting a robust annual manufacturing capacity of 1,05,000 MT of sponges, 3,17,400 MT of blooms, 3,50,000 MT of HR coils, 2,50,000 MT of ERW pipes, 50,000 MT of cold rolled products, and 15 MW power.
Currently in an expansion phase, our finished goods capacity has increased up to 4,00,000 MTPA, which reflects a positive reception in the market. The pre-galvanized pipe production capacity is approximately 1,00,000 MTPA. We also plan to increase our premium quality door frame capacity to a whopping 72000 MTPA from our existing capacity of 36000 MTPA. 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.
TPI: What does the product basket of Sambhv Steel boast of? Which are the industries where your products find application?
VKG: Sambhv’s distinguished product portfolio includes ERW steel pipes, crafted meticulously within our vertically integrated plant in Raipur. Our premium product portfolio consists of SS coils, CR coils, HR coils, blooms/slabs, sponge iron & captive power, GI/GP pipes & tubes, and ERW pipes & tubes. Our coils come in 74 sizes, ERW black pipes in 130 sizes and GI pipes in 62 sizes.
These products find applications in the infrastructure industry as handrails, gates, building exterior fabrication works, scaffolding pipe, agricultural equipment, pre-engineered buildings, industrial & engineering parts and water supply, showcasing their versatility and quality. Our latest product: Sambhv Steel Door Frame, a one-of-a-kind robust door frame, is made of premium grade HR coils. With this initiative, Sambhv has complemented its well-loved products: steel door frames and tough steel door frames, which are fire and termite-resistant, sustainable, and easy to install. Our premium door frames are specifically designed to enhance the security and safety of houses. 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.
Sambhv Steel is coming up with a new plant by October 2024 in Kuthrel, Raipur, spread over 31 acres. This new GP pipes facility will increase our production capacity significantly. Many such projects are in the pipeline.
TPI: What is your USP that gives you an edge over others? Also give us information about your market footprint.
VKG: Sambhv’s indelible market footprint is characterized by a fully integrated operation from sponge iron production to steel pipe manufacturing. We are one-of-a-kind players in India, manufacturing steel pipe from HR coils. Our unique selling proposition (USP) lies in being the sole player in India having a backward 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 coils contribute to our distinctive competitive edge. With the latest AGC technology mill, we can provide a gauge thickness tolerance of around 0.05 mm, which is at par with the best industry standards. We are registered with major public sector companies of India and have executed various prestigious government projects in India. We have established a strong channel network in India with over 1000 partners, catering to the demands of our domestic & international customers.
TPI: Please share information about recent developments at Sambhv Steel.
VKG: We have recently increased our capacity to approximately 1 million metric tonnes per annum of high-quality intermediate and finished steel products. Sambhv Steel is coming up with a new plant by October 2024 in Kuthrel, Raipur, spread over 31 acres. This new GP pipes facility will increase our production capacity significantly. Many such projects are in the pipeline.
Also Read: JTL Industries: Forging the Future of Steel Structure
TPI: Please share your views on trade fairs. How do you think such events help the industry?
VKG: We believe trade fairs are a great way to meet people, make lasting relationships and crack new deals. They bring together the whole industry, including the manufacturers, suppliers, buyers and traders under one roof, thus giving every stakeholder a chance to revive old connections and make new ones. Besides giving recognition to a company, these fairs also enable the businesses to analyze themselves, as well as prepare to sell products & services in a competitive environment. The companies can launch new products and get instant feedback for the same.
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TPI: What are your expectations from Tube & Pipe Fair 2024?
VKG: We intend to showcase our diversified products range to the eminent guests, industry leaders, professionals, and project managers during the Tube & Pipe Fair 2024. Both the participants and visitors will have a good opportunity to know about our product portfolio, as well as the quality and strength of Sambhv steel products. We are also looking forward to meeting prospective clients, and learning about the latest technology, machineries and innovations prevailing in the industry. TPF 2024 has proved to be an excellent platform to see what other players are offering. This will help in our company’s future growth.
Visit Stand: Hall 1 / C-1 at Tube & Pipe Fair – Hyderabad