Sambhv Steel Tubes Ltd. has entered into a Memorandum of Understanding (MoU) with the Ministry of Steel under the Government of India’s Production Linked Incentive (PLI) Scheme for Specialty Steel. The agreement marks a key step in the company’s plans to expand its presence in value-added steel manufacturing.
The MoU was signed on 9 February 2026 and involves an aggregate investment commitment of ₹361.75 crore by Sambhv Steel Tubes Ltd. along with its wholly owned subsidiary, Sambhv Tubes Private Limited. The proposed investment will be executed over a three-year period spanning FY 2025–26 to FY 2027–28, in line with the framework of the PLI Scheme.
Investment and Capacity Expansion
As part of the agreement, Sambhv Steel Tubes Ltd. plans to invest ₹181.75 crore to establish capacity for manufacturing thin precision gauge stainless steel sheets, with a targeted annual capacity of 1,16,000 tonnes. In parallel, Sambhv Tubes Private Limited will invest ₹180 crore to develop facilities for alloy steel and stainless steel rolled products, with an annual capacity of 24,000 tonnes.
The combined expansion is expected to add approximately 1.40 lakh tonnes per annum of specialty steel capacity across the two entities, strengthening the group’s position in higher-value steel segments.
Regulatory Disclosure
The company has stated that the MoU complies with the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It has clarified that the agreement does not qualify as a related-party transaction and does not involve any equity participation, board representation, or special rights granted to the Ministry of Steel.
Strategic Context
Participation in the PLI Scheme is expected to support Sambhv Steel Tubes’ long-term growth strategy by enhancing its specialty steel product portfolio. The investment also aligns with the government’s objective of promoting domestic production of specialty steel, reducing import dependence, and strengthening India’s manufacturing ecosystem.