Steamhouse India Ltd
Steamhouse India operates large-scale centralized community boilers to generate and distribute steam and industrial gases through a pipeline network to industrial clusters in Gujarat, using both coal and non-fossil fuels.
Overview
About the Company
SteamHouse India is an industrial gas company incorporated in June 2015, specialising in the generation and centralised distribution of steam and nitrogen through its extensive pipeline network spanning over 45 kilometres across key industrial hubs in Gujarat including Sachin, Vapi, Ankleshwar, Sarigram, Panoli and Nadesari. The company provides industrial customers with community-based systems as an alternative to developing individual infrastructure. Its business encompasses generation and distribution of steam, purchase and distribution of steam from other generating entities, separation and compression of nitrogen from atmospheric air, coal trading, and co-generation of electricity. The company serves marquee clients including Aether Industries Limited, Anupam Rasayan India Limited, Globe Enviro Care Limited, and Gujarat Polysol Chemicals Private Limited among others. Steamhouse utilizes a flexible plug-and-play model where customers control consumption through on-site valves and pay based on actual usage or minimum contractual commitments under contracts ranging from one to ten years.
Company Details
📋 Objects of Issue (Use of Proceeds)
- › Repayment or prepayment of outstanding borrowings: ₹180 crores
- › Capacity expansion of the Ankleshwar Facility (Phase 3): ₹37.98 crores
- › Capacity expansion of the Panoli Facility (Phase 2): ₹37.98 crores
- › Setting up manufacturing facility for generation of steam at Dahej SEZ: ₹38.17 crores
- › General corporate purposes
✅ Strengths
- ✓ High customer retention with long-term supply contracts spanning up to ten years
- ✓ Flexible plug-and-play solution allowing customers to pay based on actual consumption
- ✓ Strategic facility locations near major industrial clusters in Gujarat reducing transmission losses
- ✓ Integration of non-fossil fuels such as plastic waste, textile waste and agro-waste to reduce environmental impact
- ✓ Consistent revenue growth driven by high volume of repeat orders and established infrastructure
- ✓ Leading market position offering energy efficient solutions across industries with high growth potential
- ✓ High barriers to entry for competitors in the community boiler space
- ✓ Marquee customer base with long-term relationships driven by strong value proposition
- ✓ Track-record of implementing eco-friendly solutions and promoting sustainable development
⚠️ Risks
- ! Revenue concentration risk with top ten customers contributing 47.87% of operations
- ! Profitability substantially dependent on price and availability of imported coal
- ! Geographic concentration in Gujarat making operations vulnerable to local regulatory changes
- ! Significant reliance on related party transactions with group companies for sales and purchases
- ! Past non-compliances with pollution control board approvals could result in future operational penalties