Pricing of steel can have an immediate and lasting impact on construction and infra industry
Steel is a basic input in the construction and infrastructure industry and hence the availability and pricing of steel can have an immediate and lasting impact on construction and infra industry. As the country transitions into an economic powerhouse, infrastructure creation too went on an overdrive. The share of construction (B& C and Infrastructure) in steel demand is high at 60-65% for India of which building and construction segment constitute 70-75% share.
- Sunil Agarwal
Director, Kamdhenu Limited
How is steel driving the demand in the construction and infra industry?
Steel is a basic input in the construction and infrastructure industry and hence the availability and pricing of steel can have an immediate and lasting impact on construction and infra industry. As the country transitions into an economic powerhouse, infrastructure creation too went on an overdrive. The share of construction (B&C and Infrastructure) in steel demand is high at 60-65% for India of which building and construction segment constitute 70-75% share.
What is the present demand and supply scenario of steel in the country and what are the challenges faced by industry in terms of raw material input cost?
Steel is an important input in the manufacturing of TMT bars and prices have been on an upswing owing to the global turmoil. The demand for steel is high and will grow by about 10% through 2022. Market variations in other input materials such as oil & gas are also key concerns impacting input cost.
Can you give an overview of the product portfolio of Kamdhenu Steel which are being supplied for the construction industry and which is your biggest market in the country?
Kamdhenu Limited is truly a one-stop construction material solutions company, manufacturing and supplying a variety of products including but not limited to TMT bars, structural steel and colour coated sheets, etc. Our wide range of products caters to various kinds of structural, aesthetic and luxury requirements in construction and is growing by doing brisk business.
KamdhenuNxt is a next generation TMT bar with angular double rib design. Manufactured with cutting-edge technology which is at par with the futuristic national and international quality standards, KamdhenuNXt is best suited for modern architectural patterns and designs meant for newly engineered structures.
Kamdhenu PAS 10000 is a state-of-the-art power alloy steel product, first introduced in the country by Kamdhenu. Conforming to BIS and international quality standards, PAS 1000 has superb corrosion-resistant properties and anti-degradation properties. With 360-degree locking technology, it offers effective earthquake resistance and also comes with innovative ribs for ultra-strong grip with concrete.
Structural steel: Kamdhenu manufactures a variety of structural steel under franchisee agreement. High quality angles, channels, beams, flats, round and square are manufactured at partner facilities.
Colourmax colour-coated PPGI/PPGL sheets: These roofing sheets are low maintenance and offer high resistance to weather elements. These colour metal products comply with international RAL systems, the international standard for the standard colours used in architecture, construction industry and road safety.
Quality and affordability are the distinguishing hallmarks of any Kamdhenu product. Our model of decentralised production through strategic tie-ups with medium sized manufacturing units and providing technical upgradation, implementation of Quality Management System (QMS) and effective distribution through the exclusive dealer network has helped the company scale great heights. Today, Kamdhenu products are widely available across the country and are the number one products in the respective markets they are in.
How is innovation and technology playing its role in manufacturing steel as the emphasis is on lowering carbon emission?
Manufacturing of steel products such as TMT bars are highly energy-intensive operations, contributing to green-house gas emissions including CO2. To reduce cost as well as emissions, innovation and technology are playing a key role in streamlining production and reducing energy wastage among others. Kamdhenu has an in-house Innovation Centre with a strong R&D practice that develops and produces products based on customer requirements. Kamdhenu deputes technical staff at all franchisee units after training them at our own production facilities so that the same quality standards at par with what is produced at our in-house plants. Apart from deploying trained staff and periodic inspection at regular intervals, we also provide support for technical upgradation and adoption of latest technologies as well as in the implementation of Quality Management System in their manufacturing process.
Our pioneering business model also ensures that we are agile in process upgradation and technology transfers. The decentralisation of manufacturing also helps us in keeping cost low as we are close to our customers.
How do you envision growth for your company for the next five years? What is the future growth projection the company looking at?
Our range of quality products in the steel TMT sector already commands a leading position in the markets where we are present. We are stepping up our efforts at expanding into more geographies. We will look at launching new products into the market depending on emerging demand and in-line with our growth strategy.
We are looking forward to expand our capacity from 38 lakh MT of TMT steel bars to 50 lakh MT of TMT steel bars in next two years through franchisee route. Also, we are targeting to achieve a total brand revenue of Rs 22,000 crore in the steel segment by the end of financial year 2023-24.
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