Hariom Pipe Industries is a vertically integrated steel manufacturer that turns scrap, iron ore and sponge iron into thin pipes, tubes and coils - the kind used in everything from bus bodies and greenhouses to solar structures and gym equipment. Founded in 2007 as a steel trader in Hyderabad, it spent the next two decades building its own furnaces, rolling mills and pipe plants across southern India, deliberately moving up the value chain so that by 2026 nearly all its sales came from finished, higher-margin products rather than raw steel. The recurring idea is backward integration with a twist: own every step from melting to coating, but stay in the 0.3-2.5 mm thin-steel lane where the big mills don't play, and sell direct to 900-plus dealers without a distributor middleman. # Business segments A single integrated steel business that makes everything from sponge iron to galvanized pipes - but earns its living from thin, value-added products sold through a direct-dealer network. ## 1. Thin steel pipes and coils: where the margin lives **The company makes its money on finished products under 2.5 mm thick - pipes, tubes and coated coils that command a premium because they are customized, and because the company is one of the few that can roll steel that thin.** - **Thin is the moat** - Hariom focuses on the 0.3-2.5 mm thickness segment, which accounts for roughly 15% of India's total steel consumption, and holds a 13% market share in that slice as of FY25. It deliberately avoids competing with producers of heavier pipes, so it operates in a fragmented, high-volume space where its integrated setup gives it a cost edge over smaller rivals. - **Customization earns the premium** - the company can tailor thickness, length and quality to customer orders, including joint-free pipes made from maximum-length coil strip and standard pipes cut longer or shorter than industry norms. A tandem cold-rolling mill at the newest plant can produce pipes as thin as 0.4 mm, which are in high demand and fetch higher prices. - **Value-added is almost everything** - 96% of sales volume in FY26 came from value-added products: auto components, fan stampings, greenhouse structures, solar mounting systems, scaffolding, irrigation pipes, furniture, gym equipment and more. The company introduced entirely new lines - fans, packaging strips, furniture, auto parts and pre-engineered building products - in FY24 alone. - **Two production routes, one hot advantage** - the induction-furnace route melts scrap and sponge iron into billets, then rolls them into strips and pipes; the cold-rolling route takes purchased hot-rolled coils through pickling, cold reduction and galvanizing into coated pipe. The hot-charging process eliminates the need to reheat billets, saving on logistics, electricity, coal and metal loss - and the company is one of the few players with this end-to-end capability. - **Direct to the dealer, no distributor** - about 80% of sales flow through a network of 900-plus dealers and B2B clients, with the remaining 20% going direct to B2B customers. By cutting out the distributor layer, the company passes better pricing to its channel partners and keeps tighter control on demand visibility. ## 2. Intermediate products: the flexibility valve **Sponge iron, billets and hot-rolled strips are mostly consumed in-house to feed the pipe mills, but the company can sell them externally whenever market prices make that more attractive.** - **Feedstock first, sales second** - sponge iron from the Anantapur plant (36,000 tonnes per year) and MS billets from the Anantapur plant (104,232 tonnes per year) are the raw materials for HR strips and pipes. The company uses a 30:70 ratio of steel-melting scrap to high-quality sponge iron in its melt, with roughly a third of its steel coming from recycled inputs. - **Sold when the price is right** - sponge iron, billets and HR strips can all be sold to outside buyers if margins are favorable, giving the company a release valve when finished-pipe demand softens or when intermediate-product prices spike. - **Location lowers the cost** - the sponge-iron unit sits close to the iron-ore-rich Bellary region of Karnataka, cutting inbound logistics costs on the heaviest raw material. The flagship plant in Mahabubnagar, Telangana, houses furnaces, rolling mills and pipe lines on a single site, so billets move hot from casting to rolling without transport or reheating. # Group structure and partners **A listed parent with five plants, a new solar subsidiary that will sell power under a 25-year government contract, and a trading arm that has yet to start operations.** - Hariom Pipe Industries Limited is the parent, operating five manufacturing units across Telangana, Andhra Pradesh and Tamil Nadu with a combined installed capacity of 785,232 tonnes per year as of FY26. - Hariom Power & Energy Private Limited was incorporated in March 2025 as a subsidiary to build a 60 MW AC solar project in Maharashtra under the PM Kusum scheme, with a 25-year power-purchase agreement at a fixed tariff of Rs. 2.96 per kilowatt-hour. As of March 2026, land for 123 acres had been acquired, 38 MW of capacity had been tied up, and the first two 5 MW projects were expected to be commissioned within a month. The parent raised its stake to 78.7% in May 2026. - Metal Mart Private Limited was incorporated in January 2026 as a 70%-owned subsidiary for trading metals, steel and allied products - positioned as the customer-facing arm of the group - but had not commenced commercial operations as of March 2026. - The company has no joint ventures or associates. It acquired operating assets from Ultra Pipes, a related partnership firm with common promoters, for Rs. 40.16 crores in cash, adding 84,000 tonnes per year of capacity under a 99-year lease arrangement.