Sambhv Steel Tubes Limited : Integrated, Customised, Future-Ready.

India is building—roads, homes, factories, and everything in between—and steel is the silent backbone of it all. One segment quietly powering this growth is steel tubes and pipes, used in construction, infrastructure, water supply, and even furniture. But in a largely commoditized and price-sensitive industry, how does one company stand out? 

Introducing Sambhv Steel Tubes Ltd. A company with a vision, backed by cutting-edge technology, with a state-of-the-art, single-location, fully backward-integrated manufacturing plant – right at the heart of India’s steel nerve centre – Raipur.  

At Niveshaay, we spotted this company’s unique trajectory two years ago, and our conviction has only grown stronger with time. 

Industry Overview

The structural steel tube segment (~9 million TPA), comprising welded pipes, hollow sections, and related products, accounts for roughly ~6% of India’s finished steel consumption and is expected to expand to 8% by FY30 (~16 million TPA), buoyed by increasing preference for steel over traditional materials like RCC in bridges, stations, airports and high-rise buildings. 

The Indian steel pipe industry, valued at over ~Rs 1,00,000 crores, and about half of that comes from ERW pipes (Electric Resistance Welded)—and that share is rising. 

These pipes play a critical role in irrigation, water supply, telecommunications, and structural projects. Their high strength-to-weight ratio, design flexibility, and faster construction timelines (An ERW-based slab can go up in just 8 days v/s 24 days for RCC) offer cost and environmental advantages. Coupled with policy support such as the National Steel Policy’s push to raise per-capita consumption to 158 kg by 2030 and safeguard duties on imports, the industry outlook remains compelling. 

Sambhv Steel Tubes: An Innovator in Steel Manufacturing 

Founded in 2018 by the Goyal family in Raipur, Sambhv Steel Tubes Limited transformed a non-performing sponge-iron kiln into a profitable, fully backward-integrated steel-pipe manufacturer.

The Goyals have demonstrated a consistent ability to identify and turn around stressed industrial assets and scale them profitably—an uncommon trait in the cyclical and capital-intensive steel sector. 

Sambhv's evolution into a fully integrated steel manufacturing company is testament to that. 

1. Sambhv’s Backward Integration Edge 

• Raw materials in-house: From sponge iron → blooms/slabs → narrow-width HR coils → ERW & GP pipes, all within a single-campus setup. 
• Precision coils: Only one of two Indian players to make narrow-width HR coils via Hydraulic Automatic Gauge Control (±0.05 mm), ensuring tight thickness tolerances and uniform surface quality. 
• Location advantage: Raipur’s proximity (~250 km) to Navratna iron-ore mines cuts haulage costs and secures a steady raw-material supply. 

This end-to-end control slashes costs, tightens quality tolerances and locks in margins. By melting DRI in an induction furnace rather than buying pricey HRC, Sambhv achieves primary-grade properties at secondary costs, sustaining margins even in steel down-cycles. 

• Stainless Steel Coils: Commissioned AOD route for stainless HRAP/CR coils, unlocking higher margins in corrosive-resistant applications (telecom towers, solar racking). 
• GP Pipes with Advanced Threading: Entry into water-supply, plumbing, and coastal infrastructure, with quality on par with steel-door frames and pricing below conventional semi-coils. 

This shift is significant because these segments offer higher realizations and stronger EBITDA per tonne compared to standard ERW pipes.
As of FY25, Sambhv operates across two integrated facilities in Sarora and Kuthrel, Raipur.
In response to growing market demand, the company is also expanding its capacity with 1.2 Million MTPA Kesda plant (Chhattisgarh) in three phases.

3. Strong Financial & Distribution Metrics 

• Dealer network: 43 distributors → 700 dealers across key states in India. 
• Lean working capital: A cycle of just ~40 days keeps cash moving through the business. 
• Capacity growth: From 0.39 million MTPA in FY22 to 1.70 million MTPA by March 2025. 
• Expansion done by deploying internal accruals, culminating in a ₹440 Cr IPO fresh issue dedicated primarily to debt reduction. 
  

Niveshaay’s Partnership and Strategic Backing 

In sectors like steel pipes, where capital intensity is high and margins are often a function of operational excellence, we believe execution and promoter capability play a defining role in long term value creation. Our investment in Sambhv Steel Tubes is anchored in the company’s strong execution track record, efficient internal capital deployment, and end-to-end integration that gives it unmatched control over cost, quality, and supply chain.  

Our journey with Sambhv began in 2023. On-site diligence, meetings with management, visits to the Raipur facility and distributor touchpoints confirmed a culture of disciplined execution, swift decision-making and strong brand pull. Its unique ability to produce narrow-width HR coils in-house (controls the thickness and surface quality of steel with high precision) not only enhances efficiency but positions the company to compete on both cost and quality fronts. 

Another thing that struck out was despite a demand slowdown during the 2024 general elections, Sambhv continued to grow volumes, driven by rising adoption of ERW pipes over RCC structures. Within months of our Rs. 150 crore investment at a Rs. 750 crore valuation, the company had commissioned a stainless-steel coil line and added an advanced galvanizing unit—moves that placed Sambhv in an exclusive club of just three or four Indian players. The promoters’ ability to scale the business and build a reliable brand stood out. Since its inception in 2018, the company has rapidly scaled, commissioning stainless steel coil and GP pipe capacities, and expanding total installed capacity from 390,000 MTPA in FY22 to 1.70 million MTPA by March 2025. 

For us at Niveshaay, Sambhv fits our investment framework: a niche play within a large industry, fortified by deep cost advantages, alignment across the value chain, and aggressive yet disciplined expansion. Backing a company that integrates everything from DRI to ERW, GP and stainless-steel pipes under one roof—and consistently delivers on its growth ambitions—remains exactly the kind of high-impact, under-the-radar opportunity we seek.