Steamhouse expansion targets 180 TPH but orders remain unplaced

Steamhouse India Limited plans three 60-tonnes-per-hour (TPH) steam boilers in Gujarat for 2028, adding 180 TPH, but has not placed plant-and-machinery orders or signed definitive vendor agreements. The projects require Rs 114.13 crore from proposed net proceeds, with costs based on quotations, management estimates and technical assumptions.

Why do Steamhouse expansion plans depend on unplaced orders?

Steamhouse expansion plans depend on quotations rather than binding procurement contracts. For Ankleshwar Phase 3, Panoli Phase 2 and Dahej GIDC Phase 2, Steamhouse says it had not placed orders for plant and machinery or entered definitive agreements with vendors as of the red herring prospectus date. The quantities of equipment and materials are based on management estimates.

The company has obtained quotations for boiler parts, machinery, steel structures, electrical systems, instruments, labour and pipelines. Quoted prices can be revised for market conditions, raw-material prices and changes in taxes or duties. Steamhouse says any increase arising from revised quotations would be met through internal accruals; for additional project costs, it may also seek debt from existing or future lenders.

The same procurement condition applies across all three 60-TPH projects. Boiler-and-parts quotations of Rs 9.31 crore for each project came from Thermax Babcock & Wilcox Energy Solution Limited and were valid until April 30, 2027. Steamhouse states that the quoted vendors may not ultimately supply the equipment and actual costs may differ if quotations expire or other vendors are selected.

What capacity would Steamhouse add through the three boilers?

Steamhouse would add 180 TPH through one 60-TPH boiler at each of Ankleshwar, Panoli and Dahej. TPH means tonnes of steam generation capacity per hour. Steamhouse operated seven community steam boilers in Gujarat, six owned and one leased, with aggregate installed capacity of 345 TPH as of July 31, 2026.

If all three projects are commissioned, the disclosed installed base would rise to 525 TPH, based on adding 180 TPH to the reported 345 TPH. Steamhouse reported capacity of 270 TPH in Fiscal 2024, 285 TPH in Fiscal 2025 and 345 TPH in Fiscal 2026. Its installed pipeline network increased from 41,539 metres in Fiscal 2024 to 47,526 metres in Fiscal 2025 and 57,041 metres in Fiscal 2026.

Ankleshwar Phase 3 would add a third 60-TPH boiler to two existing 60-TPH units, increasing site capacity from 120 TPH to 180 TPH. The brownfield project is on land at Plot No. 302, Ankleshwar GIDC, under a lease valid until December 31, 2030. Steamhouse identifies coal, including Indonesian coal, as the main raw material for the expansion.

Panoli Phase 2 would add a second 60-TPH boiler to an existing 60-TPH unit, taking the facility to 120 TPH. The brownfield site is subject to a deed of assignment dated January 31, 2022 that runs until 2121, and imported coal is the proposed main input. Dahej GIDC Phase 2 is planned as a greenfield 60-TPH facility using imported coal.

How is Steamhouse funding the 2028 expansion plan?

Steamhouse proposes to allocate Rs 114.13 crore of net proceeds to the three 60-TPH projects. Ankleshwar Phase 3 and Panoli Phase 2 are each estimated at about Rs 37.98 crore excluding goods and services tax, while Dahej GIDC Phase 2 is allocated Rs 38.17 crore from net proceeds.

For each brownfield project, boiler and boiler parts account for Rs 9.31 crore, plant and machinery for Rs 9.32 crore, and a three-kilometre pipeline for Rs 8.83 crore. Labour is estimated at Rs 5.90 crore at Ankleshwar and Panoli. Dr. P. J. Gandhi, Chartered Engineer, certified the estimates on September 3, 2026, but Steamhouse says no bank or financial institution has appraised the projects’ funding requirements.

Dahej has differing disclosed cost descriptions. Steamhouse states that the facility’s total estimated cost is approximately Rs 40.34 crore excluding goods and services tax, says Rs 7.22 crore had been paid as advance consideration for the site lease from internal accruals, and identifies Rs 38.17 crore as the project-cost schedule amount proposed from net proceeds. The Dahej schedule includes Rs 8.97 crore for plant and machinery and Rs 6.45 crore for labour, compared with Rs 9.32 crore and Rs 5.90 crore respectively for each brownfield project.

What work and approvals remain before Steamhouse can operate?

Steamhouse had not commenced civil or construction work on Ankleshwar Phase 3, Panoli Phase 2 or Dahej GIDC Phase 2 as of the red herring prospectus date. The company says early land, layout and pollution-control permissions cover the current scope, but several approvals are scheduled for later project stages.

At Ankleshwar, the Gujarat Pollution Control Board issued consent to establish on June 23, 2025, while Gujarat Industrial Development Corporation approved the layout on April 18, 2025. Panoli has consent to establish dated April 22, 2026 and an approved GIDC plan dated September 26, 2024. Dahej has a GIDC licence agreement dated March 25, 2025, a Dahej GIDC plan approval dated October 28, 2025 and consent to establish dated January 3, 2026.

The Dahej licence has an initial two-year period and is to increase to 99 years if construction is completed within that initial period. Across the three sites, Steamhouse lists later-stage requirements including building-and-other-construction-workers registration, electricity and water permissions, Indian Boiler Regulations approval, factory licences and consent to operate. Dahej also lists pipeline right-of-use approval before installation and boiler approval after boiler installation.

What must happen for the 2028 commissioning dates to hold?

Steamhouse’s 2028 commissioning targets depend on receiving net proceeds by September 30, 2026, timely procurement and completion of subsequent approvals. The company says the targets for Ankleshwar Phase 3, Panoli Phase 2 and Dahej GIDC Phase 2 are management estimates and may be revised if net proceeds are not received by that date.

Dahej provides the most detailed schedule. Steamhouse plans to appoint civil and structural contractors in October 2026, place bought-out-item orders between January and April 2027, erect boiler pressure parts from March to July 2027, and conduct the boiler hydro test in August 2027. The schedule places commissioning and stabilisation between February and May 2028, with commissioning targeted for May 2028.

Steamhouse’s existing customer base provides a disclosed demand backdrop, although it does not remove execution requirements. Repeat customers contributed 91.49% of revenue from operations in Fiscal 2024, 88.01% in Fiscal 2025 and 90.72% in Fiscal 2026. The company served 154 repeat customers out of 202 total customers in Fiscal 2026, compared with 74 repeat customers out of 125 customers in Fiscal 2024.

Conclusion

Steamhouse has defined a three-project Gujarat expansion that would add 180 TPH to its reported 345-TPH boiler base, but procurement remains a central execution condition. The Rs 114.13 crore proposed allocation is supported by project reports and supplier quotations, not by placed equipment orders, definitive vendor agreements or bank appraisal of the funding requirements.

The next disclosed milestones are receipt of net proceeds by September 30, 2026 and Dahej’s planned bought-out-item orders from January to April 2027. Investors can also watch whether Steamhouse starts construction, converts quotations into procurement agreements and obtains the electricity, boiler, water and operating approvals listed for later stages.