Sambhv Steel Tubes Limited has announced a significant expansion plan aimed at doubling its manufacturing capacity for key products. The company's Board of Directors approved this strategic move during a meeting held on December 8, 2025.

Expansion Details

The expansion plan focuses on two primary product lines:

1. Cold Rolling Mill (CRM) with Bright Annealing (BA) Line
2. Continuous Galvanizing Line (CGL)

For both product lines, the company plans to increase its annual capacity from 58,000 to 116,000 metric tons. This expansion will take place at the company's Kuthrel unit, located in Raipur, Chhattisgarh.

Financial Investment and Timeline

• Investment: ₹500.00 million
• Funding Source: Internal accruals
• Target Completion: Q4 FY26

Capacity Overview

All figures represent annual capacity in metric tons

Strategic Rationale

Sambhv Steel Tubes cited two primary reasons for this expansion:

1. To meet captive requirements
2. To address the growing market demand for their products

This move suggests that the company is positioning itself to capitalize on increasing market opportunities in the stainless steel sector, particularly in cold-rolled coils and pre-galvanized (GP) coils.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting that approved this expansion plan commenced at 07:20 PM and concluded at 07:45 PM on the day of the announcement.

This expansion plan represents a significant step for Sambhv Steel Tubes, potentially enhancing its market position and production capabilities in the steel industry. Investors and market watchers will likely keep a close eye on the execution of this plan and its impact on the company's future performance.

Sambhv Steel Tubes Limited , a key player in India's steel industry, has announced plans to significantly expand its manufacturing capabilities. The company's Board of Directors approved two major capacity expansion projects on November 8, 2025, with a combined investment of approximately ₹9,350 Millions.

Cold Rolling Mill Expansion

The first project involves setting up a new Cold Rolling Mill for stainless steel at the company's Kuthrel Unit-II in Raipur, Chhattisgarh. This expansion will increase Sambhv's cold rolling capacity:

The company reports that its existing cold rolling mill is operating at 86% capacity utilization.

Greenfield Integrated Steel Manufacturing Project

The second project is a Greenfield Integrated Steel Manufacturing facility to be constructed at Village Kesda, Chhattisgarh. This project, originally planned to be executed through the company's subsidiary, will now be undertaken directly by Sambhv Steel Tubes Limited. The expansion includes:

The estimated investment for this project is approximately ₹7,550 crore. Both expansions are scheduled to be operational by the fourth quarter of FY2027.

Financing and Strategic Rationale

Sambhv Steel Tubes plans to finance these expansions through a combination of internal accruals and debt. The company stated that the rationale behind these investments is to meet growing market demand for their products and to fulfill captive requirements.

Current Operations

The company's existing facilities are operating at high utilization rates:

• Induction furnace: 84% capacity utilization
• Hot rolling mill: 62% capacity utilization
• Power plant: 88% capacity utilization

These expansions represent a major step for Sambhv Steel Tubes Limited, potentially positioning the company for growth in India's evolving steel market. The announcement comes at a time when India's steel sector is seeing increased demand, driven by infrastructure development and economic growth.