Sai Infinium Limited IPO

Relationship with Our Customers

Sai Infinium Limited has established long-term relationships with customers in steel and ship recycling industries. This success is built on delivering consistent product quality, ensuring on-time delivery, offering competitive pricing, and benefiting from a strategic location. These factors have helped the company build strong trust and a solid reputation among its clientele over the years.

Raw Material Sourcing

Sai Infinium sources scrap iron and steel from multiple channels, including local Alang shipyards, its own recycling unit, imports, and the Gujarat market. This diversified approach secures a steady supply of raw materials at competitive prices, reduces logistics costs due to proximity, and ensures smooth billet production, giving the company a cost advantage over competitors in the market.

Ability to Mitigate Operational Risk

Sai Infinium’s revenue streams span steel manufacturing, ship recycling, and real estate, effectively spreading operational risks. This diversification allows the company to navigate market cycles and raw material shortages better than single-industry competitors. Multiple income sources ensure consistent cash flow, helping maintain financial stability and operational continuity even during industry fluctuations or economic downturns.

Plant Location

Sai Infinium’s manufacturing facility is strategically located just 60 km from the Alang shipyard. This proximity offers a clear logistical advantage, ensuring easy access to key raw materials like scrap steel. Reduced transportation distance lowers costs and shortens supply lead times, enabling more efficient production and contributing to the company’s competitive positioning in the steel industry.

Certified as Green Products by the CII

Sai Infinium’s TMT bars carry the prestigious green certification from the CII Green Products and Services Council. This recognition highlights the company’s adherence to sustainable and eco-friendly manufacturing practices. It enhances the company’s eligibility for government tenders and supports broader efforts to reduce the carbon footprint in construction and infrastructure sectors.

Experienced Directors and Key Managerial Persons

The company is led by an experienced Board of Directors and skilled senior management who actively guide its strategic direction. Their expertise enables Sai Infinium to anticipate market trends, diversify its product offerings, optimize operations, strengthen customer relationships, and adapt swiftly to changes in industry dynamics and consumer preferences, driving sustained business growth.

Consistent Track Record of Financial Performance

Sai Infinium has demonstrated steady financial performance, overcoming pandemic challenges in 2022. Revenue has shown consistent growth over recent years, reflecting improved balance sheets and cash flows. This resilience underscores the company’s effective financial management and operational strength, positioning it well for future growth opportunities within the steel and related sectors.

More About Sai Infinium Limited

Sai Infinium Limited began its TMT manufacturing operations in December 2022. From April to December 2024, the company reported a production volume of 67,868 MT, with 56,373 MT of TMT bars sold. The capacity utilisation for this period stood at 83.79%, compared to 53.34% in Fiscal 2024 and 28.62% in Fiscal 2023. The annual plant capacity is 108,000 MT, assuming one shift (eight hours) for 360 working days.

Production Performance (Per One Shift)

• Capacity: 300 MT

• Production (FY24): 241.90 MT

• Utilisation: 80.63%

TMT Bar Manufacturing Process

In-House Rolling Mill Operations

Sai Infinium uses in-house manufactured hot billets for TMT bar production, employing advanced Tempco quenching technology for strength.

Key Processes:

• Billet Rolling: Red-hot MS billets pass through roughing stands for reduction, followed by shaping and ribbing in successive stands.

• Shearing: Automatic hot billet shearing machines are used; gas cutting is kept as a backup.

• Cooling and Strapping: Bars cool at room temperature before bundling via automatic strapping machines.

Stages in TMT Production

• Rolling Mill Stands: Segregated into roughing, intermediate, and finishing stages for accurate sizing.

• Quenching: Thermex system hardens the outer layer while retaining core softness.

• Self-Tempering: Heat transfer from the core tempers the outer shell.

• Atmospheric Cooling: Achieves ductility through slow cooling on a cooling bed.

• Cutting and Quality Check: Final bars undergo strength and composition tests.

Raw Material Sourcing

For MS Billets

Sai Infinium sources scrap iron and steel mainly from:

• Own ship recycling unit (0.53% of total scrap in Apr–Dec 2024)

• Local Alang ship recyclers (18.28%)

• Imports (37.30% from UAE, UK, Singapore)

• Gujarat market (43.89%)

For TMT Bars

• Raw Material: MS Billets

• Source: Entirely from in-house production

Utilities Infrastructure

• Power: Supplied by PGVCL, with a connected load of 33,700 KVA

• Water: Sourced from Gujarat Water Infrastructure Ltd., used extensively in various cooling processes

Industry Outlook

India’s steel industry is poised for significant expansion, driven by infrastructure development and urbanization. In 2023, the market was valued at USD 119.5 billion, with projections indicating a rise to USD 154.7 billion by 2030, reflecting a CAGR of 3.8% .

Key Drivers:

• Infrastructure Initiatives: Government programs like PM Gati Shakti and Smart Cities Mission are accelerating steel demand.

• Urbanization: Rapid urban growth necessitates increased steel usage in construction.

• Industrialization: Expansion in sectors such as automotive and manufacturing boosts steel consumption.

TMT Bar Segment: Strengthening Foundations

Thermo-Mechanically Treated (TMT) bars, essential for reinforced concrete structures, are experiencing heightened demand. The Indian TMT bar market is projected to grow at a CAGR of 9.1% from 2025 to 2032, reaching nearly USD 22.55 billion .

Growth Catalysts:

• Construction Boom: Surge in residential and commercial projects increases TMT bar usage.

• Infrastructure Projects: Roads, bridges, and metro systems require substantial TMT bar inputs.

• Quality Standards: Preference for high-strength, corrosion-resistant materials favors TMT bars.

How Will Sai Infinium Limited Benefit

• Sai Infinium Limited benefits from strong industry growth with the Indian TMT bar market expected to grow at a 9.1% CAGR, aligning well with its production capacity.

• High capacityutilization (83.79%) demonstrates efficient use of resources and operational excellence, boosting profitability potential.

• In-house billet manufacturing ensures consistent raw material quality and reduces dependence on external suppliers, enhancing supply chain stability.

• Advanced Tempco quenching technology improves product strength and durability, meeting rising quality standards and customer demand.

• A production capacity of 108,000 MT with one shift allows room for scaling output as market demand increases.

• Strategic raw material sourcing from own ship recycling, local, and imported scrap secures steady inputs at competitive costs.

• Reliable utilities infrastructure (power and water) supports uninterrupted manufacturing processes, critical for meeting deadlines and quality benchmarks.

• Growing infrastructure and urbanization trends in India provide a robust demand base for Sai Infinium’s TMT bars, driving future sales growth

Peer Group Comparison

Companies	Face Value (₹)	Sales (₹ in Lakhs)	PAT (₹ in Lakhs)	EPS (₹)	P/E Ratio	RoNW (%)
Sai Infinium Limited	10.00	47,578.70	905.41	3.22	–	-7.31%
Peer Groups
Kamdhenu Limited	1.00	73,829.48	5,013.35	18.61	1.60	23.52%
Vraj Iron & Steel Limited	10.00	42,427.00	1,849.90	23.22	6.44	9.23%
VMS Industries	10.00	27,084.31	631.53	3.83	7.66	9.88%

Key Strategies for Sai Infinium Limited

Continuous Focus on Capability Building

Sai Infinium Limited plans to expand its product portfolio with more value-added products to improve profit margins and cash flow. Leveraging management and engineering expertise, the company will adopt latest technologies to optimize manufacturing efficiency, reduce costs, and boost productivity and financial performance.

Commitment to Environment-Friendly Energy

The company is committed to sustainable energy by proposing a 66.20 MW hybrid solar and wind power plant. This initiative aims to provide uninterrupted, eco-friendly power to the manufacturing facility, reducing dependence on conventional energy and supporting the company’s environmental responsibility goals.

Setting Up 17.4 MW Hybrid Power Plant in Gujarat

Sai Infinium is establishing a 17.4 MW hybrid solar-wind power plant in Gangiyavadar, Gujarat. The generated electricity will feed into the local grid, with credits offsetting the company’s manufacturing plant electricity consumption, thereby lowering operational energy costs and enhancing cost efficiency.

Expansion with Mild Steel Structures Rolling Mill

The company proposes to add a Mild Steel Structures plant in Bhavnagar, Gujarat, with 43,200 MT annual capacity. This expansion will produce various steel shapes widely used in construction, infrastructure, and power projects, broadening Sai Infinium’s manufacturing capabilities and product offerings.

Acquisition of Cargo Vessel “CORSICA”

To boost its ship breaking operations, Sai Infinium plans to acquire the cargo vessel “CORSICA” for USD 2.19 million. The purchase, formalized through a Memorandum of Agreement, will strengthen raw material sourcing by improving operational capacity at its Alang, Bhavnagar ship breaking facility.