As India invests in infrastructure, agri-mechanisation, telecom and industrial growth, the demand for quality steel pipes and tubes will continue to be strong. Sambhv Steel Tubes is at the centre of this opportunity, an integrated manufacturer of ERW steel pipes and stainless steel products, set to list on the public markets soon.
Backed by consistent financials, asset heavy manufacturing and wide distribution network, Sambhv Steel is a promising company aligned with India’s industrial and infrastructure priorities.
Industry Outlook: Riding on India’s Infrastructure & Global Steel Cycles
The global steel industry worth over USD 1 trillion (~INR 86.82 lakh crore) is the backbone of economic development across infrastructure, automotive, energy and construction sectors. The pipes and tubes segment – a downstream application of flat and long steel – is expected to grow at 7-9% CAGR globally over the next 5 years driven by energy transition, water infrastructure upgrades and urban expansion.
🇮🇳 India: Fastest Growing Steel Consumer
India is the 2nd largest steel producer globally and will be a demand engine in the coming decade led by:
- INR 100 lakh crore capex pipeline under the National Infrastructure Pipeline (NIP)
- Government push for housing, sanitation, smart cities and irrigation projects
- Growing demand for farm equipment, telecom towers and transportation infrastructure
Within this, the ERW steel pipes market in India is expected to grow in double digits with private and public sector investments in water supply, oil & gas and agriculture.
🏭 Sambhv’s Place in the Market
Sambhv Steel is at the crossroads of this growing demand — with integrated facilities and presence across OEMs, infrastructure clients and distributors. While bigger players like APL Apollo have volumes, Sambhv has:
- Vertical integration — from raw material to value added products
- Ability to serve both retail and project based customers
- Mid-size agility to expand efficiently into new states or product segments
With plans to reduce debt, improve working capital and scale up products, Sambhv is positioning itself to capture the emerging opportunities — especially in non-urban, project driven and OEM led consumption zones where customization and turnaround time matters.
🏭 Integrated Manufacturing with Operational Resilience
Sambhv Steel operates across the value chain — from iron ore and coal sourcing to sponge iron and finished steel tubes production. The company serves diverse end use sectors like telecom tower manufacturers, tractor and cultivator OEMs, infrastructure companies and retail hardware channels.
It has 43 distributors and over 700 dealers across 15 states and one union territory. A key strength is its captive power capability which ensures stable operations and energy efficiency. Further, ISO certifications across quality, environment, energy and safety reiterates its focus on manufacturing excellence and sustainability.
📈 Consistent Financial Growth and Capital Efficiency
The company has demonstrated consistent topline growth, with revenue from operations increasing from INR 819.30 crore in FY22 to INR 1,285.7 crore in FY24. For the nine months ending 31 December 2024, consolidated revenues stood at INR 1,016.10 crore.
Sambhv has also maintained healthy profitability, with FY24 standalone Earnings Per Share (EPS) at INR 3.79 and a Return on Net Worth (RoNW) of 25.42%, reflecting strong capital efficiency.
Its balance sheet strength is notable, with tangible fixed assets (including plant and land) comprising a large share of total assets. The proposed IPO includes a fresh issue primarily intended for debt repayment, expected to improve the company’s financial ratios and enhance operational flexibility going forward.
🔩 Wider Industry Presence with Diversified Customer Base
In addition to its strong domestic distribution, Sambhv also supplies directly to infrastructure and construction companies, government entities and OEMs through its distributor network. This mix of retail and institutional demand helps the company to navigate market cycles better.
Raw materials like iron ore and coal are sourced from reputed public sector and private players, including a Navratna PSU, Godawari Power and subsidiaries of a Maharatna PSU. Long term agreements ensure raw material security.
IPO Objectives: Strengthening the Balance Sheet for Future Growth
A key objective of the IPO is to prepay or schedule repayment of INR 390 crore of borrowings to:
- Reduce debt servicing costs and improve profitability
- Improve debt equity ratio for future scalability
- Free up internal resources for business expansion and operational efficiency
This strategic fund utilisation reflects Sambhv’s prudent financial approach and positions the company for long term stability as it enters the public markets.
📊 Strategic Differentiators Among Peers
While Sambhv operates in a competitive industry with several listed players, it has carved out certain strengths that differentiate its profile:
- Superior Capital Efficiency: Sambhv’s RoNW of 25.42% (FY24) is highest in its peer group, indicating efficient asset utilisation and return focused growth.
- Product Integration and Vertical Control: Unlike peers who only focus on downstream products, Sambhv’s backward integration into sponge iron and intermediate processing (including HR coils and GP/CR) gives it better cost control and flexibility.
- Captive Power and ISO 50001 Compliance: With captive power setup and international energy management certifications, the company has ensured operational continuity and energy cost optimisation — an edge not uniformly seen across mid-sized peers.
These structural differentiators along with its growing footprint positions Sambhv as a company pursuing both resilience and scale.
🧮 Position Among Industry Peers
| Peer Company | Revenue (INR Cr) | RoNW (%) | EPS (INR) | NAV/Share (INR) |
|---|---|---|---|---|
| Sambhv Steel (FY24) | 1,285.80 | 25.42 | 3.79 | 18.19 |
| APL Apollo Tubes | 18,118.80 | 22.21 | 26.40 | 129.60 |
| Hariom Pipes | 1,153.20 | 13.56 | 20.34 | 160.50 |
| JTL Industries | 2,040.20 | 19.15 | 6.63 | 43.72 |
While it operates at a smaller scale than some larger peers, Sambhv’s return profile and vertical integration offer a compelling narrative within its segment.
🔍 What Lies Ahead: Strategic Roadmap Beyond IPO
As Sambhv Steel prepares to enter the public market, the company is not merely seeking funds — it is laying the foundation for its next phase of transformation and growth. The future roadmap appears anchored around five focused themes:
- Capacity Expansion: Land acquired at Kesda, Chhattisgarh signals upcoming investment in a new manufacturing facility — a move aimed at scaling capacity and product portfolio.
- Balance Sheet Strength: Debt reduction through IPO proceeds will improve leverage, free up cash flow, and enable better capital allocation.
- Deepening Market Reach: Sambhv plans to expand into underserved Tier 2/3 industrial zones and strengthen its presence in project-driven and OEM-based demand centers.
- Product Customisation: Its ability to offer tailor-made tubes for OEMs and infrastructure clients gives it an edge in retaining and growing key B2B relationships.
- Digitisation & Operational Efficiency: With ERP systems and ISO-compliant energy management, Sambhv is focused on scaling smartly while maintaining cost and energy efficiency.
📌 Final Words
Sambhv Steel Tubes’ IPO is more than a fund raise – it’s the company’s transition to a new phase of visibility, governance and scalability. With integrated operations, consistent financials and industrial linkages it’s a player to watch in India’s steel and infrastructure space.
As it builds its balance sheet and continues its disciplined growth path Sambhv Steel is laying the foundation for long term participation in the country’s growth story. As it enters the listed space the market will watch how the company sustains its performance, optimizes its capital structure and unlocks the next layer of value.
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