Page 53 - Most Trusted Logistics and Supply Chain Brands & Booming Fintech Companies

TMT STEEL INDUSTRY HAD ALSO ON DOMESTIC COAL ARE SOME OF manufacturing process for high
SUFFERED A SETBACK. AS THE THE ISSUES THAT THE INDUSTRY grade pure FE500 & 500D. The
LOCKDOWN EASES, ARE THE IS GRAPPLING WITH. WHAT IS enhanced strength and ductility
STALLED PROJECTS BOTH IN YOUR TAKE ON THIS? of our product conforming to BIS
CONSTRUCTION AND INFRA- Agarwal: India is the global number standards makes it well suited
STRUCTURE ALONG WITH CAPITAL 2 when it comes to steel and stain- for use in modern construction
EXPENDITURE PLANS COMING less steel. The holistic approach and there is high demand. We will
BACK ON TRACK AND IS DEMAND adopted by the government and be ramping up our capacity to
FOR STEEL ITEMS RECOVERING policy support have contributed 50Lakh MT in the next 2 years
LOST GROUND? to this status. However there still through the franchisee route.
Agarwal: While the pandemic had remains some pain points such as
indeed put the brakes on on-going the ambiguity in duty structure RM: HOW MANY DEALERS-
real estate and infrastructure and in iron ore production for DISTRIBUTORS DO YOU HAVE
projects, demand for housing has example. The government must IN YOUR CHAIN? ANY PLANS TO
ballooned. With the lockdown take appropriate at the right time EXPAND ON THAT?
easing, stalled projects are being and in consultation with the various Agarwal: We have a committed
revived and we expect a surge stakeholders so that sectoral chain of over 11,500 dealers
in new projects to cater to the growth and potential of the sector and distributors throughout the
increasing demand. With capital are realised. country out of which 7,500 are
expenditure on infrastructure exclusive for steel business. We
creating reviving, the demand for RM: HOW IS THE OVERALL are looking at avenues to expand
steel items will not only recover it TMT BAR MARKET DOING IN our dealer-distribution network
will see an exponential growth. INDIA AND HOW DO YOU SEE to serve more customers and
THE MARKET GROWING OVER deliver more high quality products
RM: COULD YOU PLEASE THROW THE NEXT ONE YEAR? WHERE at affordable costs to discerning
SOME LIGHT ON HOW KAMD- DOES KAMDHENU TMT STAND buyers.
HENU TMT IS TWEAKING ITS VIS-A-VIS OTHER INDUSTRY
PLANS AND STRATEGIES TO COPE PLAYERS? RM: WHAT ABOUT YOUR PAINTS
UP WITH THE NEW SITUATION Agarwal: TMT bars have huge BUSINESS? IT MUST HAVE BEEN
AND GROW EVEN IN THESE CHAL- application and is a growth area HIT HARD BY THE PANDEMIC AS
LENGING TIMES? for the sector. Demand for TMT WELL. HOW IS THIS BUSINESS
Agarwal: Kamdhenu has been has been going strong over the DOING AND WHAT ARE YOUR
focussed on taking care of years. With covid related restric- PLANS IN THIS SPACE?
its employees/dealers and tions currently lifted in a majority Agarwal: The demand for paint has
supporting the government of the states, demand is reviving seen a marked increase from indi-
authorities in whichever way we gradually. If the massive vaccina- vidual buyers since the first lock-
can under the new normal. No tion drives and other interventions down was in place. This is mainly
Kamdhenu employee had been adopted by the government in due to people staying at home
let off and no reduction in salary the fight against Covid-19 are and engaging in home improve-
has been implemented. We have successful and another lockdown ment and renovation projects.
rolled out several initiatives to like restrictions can be avoided, However for institutional buyers,
help our people both in cash and the TMT bar market will see a the lockdown led to shutting down
kind. We have also donated to the high growth trajectory on account of work and hence there has been
PMCares fund as well as to several of latent demand and increased reduced demand from them. Paint
state and local administrations. We demand for residential houses. is an exciting business and we are
have activated our social media Kamdhenu is the market leader looking for growth avenues in the
platforms to spread awareness when it comes to TMT bars due to sector.
on precaution and importance of its affordable quality. Our business
vaccination to help the national model ensures that we are well
effort. We will look at tweaking prepared to expand rapidly and
business plans and adapting strat- deliver assured quality products to
egies in light of the new normal at buyers.
an appropriate time.
RM: WHAT IS YOUR CURRENT
RM: THE DIFFERENCE BETWEEN CAPACITY AND ANY PLANS TO
THE CONVERSION COST AND RAMP UP CAPACITY IN NEAR
COST OF STEEL PRODUCTION, FUTURE?
INVERTED DUTY STRUCTURE Agarwal: To meet existing demand,
RESULTING IN “ROYALTY ON we have an installed capacity of
ROYALTY”, THE COST BURDEN ON around 38Lakh MT TMT using the
THE MINERALS SECTOR AND CESS latest technology and world class

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