SIL eyes huge potential for steam supply to industries via pipelines

Visakhapatnam: Steamhouse India Limited (SIL), which has carved a niche for itself by supplying steam to industrial units in Gujarat projecting itself as the first of its kind community green-friendly boiler system in India eyes to make a mark in exploring huge potential in Andhra Pradesh and Telangana.

The company, which is making efforts to be fossil-free in a decade or so, has already held talks with Jawaharlal Nehru Pharma City (JNPC), the largest pharma cluster of Andhra Pradesh at Parawada in Anakapalle district, about 40 km from Visakhapatnam. It is also hopeful of getting offers for centralised steam generation from common boilers to provide steam as a utility to the industrial units through a grid of pipelines at the proposed Bulk Drug Park coming up at Nakkapalli near the city. The Central government has committed to fund Rs 1,000 crore towards creating the required infrastructure.

In a brief chat with Bizz Buzz, SIL Managing Director Vishal S Budhia, who was here to attend a conference on energy efficient India organised by the State unit of Confederation of Indian Industry, said that they have finalised an ambitious expansion plan after moving out of Gujarat and setting up a greenfield project in Maharashtra. “Our model of using steam through piped network supply is 40-50 per cent more efficient with a superior industrial safety mechanism,” he said.

The company started its first project in Surat and later expanded it to five locations in Gujarat. One new project is under construction in Maharashtra. The Government of India as well as the Central Pollution Control Board have also mandated the use of common boilers for industrial purposes.

Budhia said they are also into designing thermal efficient boilers. Their investment, he said, has risen from Rs 25 crore in 2014-25 when they learnt making baby steps has grown to Rs 400 crore to Rs 450 crore. In the next two to three years, they are planning to invest Rs 1,500 crore as part of expanding their business to become a pan India commercial venture.

SIL sees a good business potential for manufacturers of large boilers in Andhra Pradesh, Telangana, Tamil Nadu and other States. The company’s turnover, which is around Rs 400 crore this year, is expected to cross the Rs 1,000-crore mark next year.

Budhia said steam is required in large quantities for chemical, textiles, plywood, agro and food processing industries. He said their technology will reduce air pollution by 70-80 per cent. The Indian market potential, he said, is estimated at Rs 3 lakh crore. He said they have drawn inspiration on successful implementation of technologies on utilisation of steam for industrial purposes at Daego in South Korea.