Shiv Aum Steels is a steel service centre that solves a simple but stubborn problem: steel mills produce in bulk, but customers need small, customised quantities - so the company buys big, stocks deep, and delivers exactly what each buyer wants, when they want it. The business began in 1982 as a small partnership trading structural steel from a plot in Mazgaon, Mumbai, and over four decades graduated from dealing with secondary manufacturers to becoming an authorised distributor for India’s largest primary steel producers - SAIL, RINL and JSPL. That same consolidator logic - use scale in procurement to serve fragmented demand, and earn on the margin between the two - still defines the company today.
Business segments
A single steel trading and distribution engine, built on authorised partnerships with India’s largest mills, serving over a thousand end-customers from one primary warehouse hub near Mumbai.
1. Steel trading and distribution: the bridge between the mill and the small buyer
The company buys steel in bulk from top-tier primary producers, holds an inventory of 12,000 to 15,000 tonnes at any time, and sells it in the exact sizes and quantities that over 1,000 customers need - earning its keep on the spread between bulk procurement and customised sale.
- Authorised distributor for India’s steel giants - the company holds formal MOUs (memorandums of understanding) and distributor rights with SAIL, JSPL and RINL (Vizag Steel), relationships built over decades starting with its first dealer agreement in 1995, so it has assured access to high-quality, branded steel that smaller traders cannot easily replicate.
- One-stop range across long and flat products - the portfolio spans structural steels, plates and coils, including angles, universal beams, channels, TMT bars, rails, universal columns and chequered sheets, which means a single customer can source multiple product types from one supplier instead of dealing with several mills.
- Inventory as the service - the company stocks over 12,000 to 15,000 tonnes across its godowns, so customers who need small or irregular lots - which steel mills, with their minimum order sizes and specialised transport requirements, will not supply directly - can get just-in-time delivery without tying up their own working capital.
- Defined process from enquiry to payment - the business follows a repeatable sequence: bulk purchase, warehousing, customer enquiry, quantity confirmation and quotation, order confirmation, dispatch, and payment, with revenue earned once per transaction on the margin between procurement cost and sale price.
- Diversified demand across industries - the customer base spans infrastructure, construction, automotive, affordable housing, railways, capital goods, and oil and gas, so demand is not tied to any single sector’s cycle.
Group structure and partners
A family-led promoter group with multi-generational steel trading experience runs the company, supported by one wholly-owned subsidiary and an associate real-estate entity.
- Promoter families in day-to-day roles - the Bansal and Mehta families have been involved since the partnership days, with Sanjay Bansal (over 40 years’ experience) overseeing raw-material sourcing and fund mobilisation, Jatin Mehta (over 43 years) handling product sourcing and diversification, and Krishna Mehta (over 43 years) managing sales and customer relationships.
- Next generation already embedded - Rishabh Mehta works in procurement and product-base modification, while Utsav Bansal focuses on day-to-day operations and management information systems covering sales, purchases, debtors and stock positions, giving the company continuity beyond its founding generation.
- Wholly-owned subsidiary for allied steel trade - Shivoham Ventures Private Limited is a subsidiary that transacts with the parent for the supply and purchase of iron and steel in the ordinary course of business, effectively extending the trading engine under common control.
- Associate company with a significant stake - Mobi Realtors Private Limited is an associate that held 23.57% of shares as of March 2020, creating a cross-holding structure between the steel trading business and a real-estate entity within the promoter group.
- Listed SME with main-board ambitions - the company listed on the NSE Emerge platform in 2019 and has applied to migrate to the NSE Main Board, while its bank facilities of Rs. 90 crore carry a CRISIL long-term rating of BBB/Stable and a short-term rating of A3+.