We are banking on growth opportunities in key sectors such as infrastructure, railways, renewable energy, and the electric vehicle ecosystem, says Anubhav Kathuria, Director at Synergy Steels
Please give us an overview of the structural steel market in India
The demand for structural steel in India is expected to experience significant growth in the coming years. This growth is likely to be fuelled by various factors such as the government's push on infrastructure development. With a number of upcoming projects, we see increased demand for structural steel in projects encompassing roads, bridges, railways, airports, and metro systems. Additionally, the expansion of industries such as automotive, manufacturing, power, and telecommunications is set to drive the need for structural steel. In this regard, we hope that long-form stainless steel products remain the preferred choice for such projects, owing to the multitude of benefits that they tend to offer.
How has your organization performed in the last two years?
In the last two years, our organization has delivered exceptional performance. An ISO 9001:2015 certified company, we've maintained state-of-the-art industrial facilities equipped with cutting-edge technology-driven machinery. Our commitment to excellence in quality, service, and timely delivery has positioned us as a leading manufacturer of top-quality stainless steel flats, billets, and wire rods. With a capacity to produce 250,000 tonnes of stainless steel annually, a turnover of more than USD 315 million, and a continuous expansion into value-added products, we have emerged as a key player in the stainless steel long products market and are poised for continued advancement in the future.
What types of stainless steel products do you offer?
Our most recent launch, stainless steel rebars are corrosion-resistant and durable, making them ideal for infrastructure and construction projects. These rebars provide enhanced structural integrity, longevity, and design flexibility while minimizing maintenance needs. Our wire rods serve as a vital raw material for the production of wires and bright bars. These wire rods are widely used in the construction and infrastructure sectors. In order to further expand our product range, we have recently introduced 5mm stainless steel wire rod across various grades.
Known for their aesthetic appeal, our stainless steel bright bars are extensively used across various industries, including kitchens, home appliances, and consumer durables. Bright bars are processed to manufacture handles, shafts, etc, enhancing the visual appeal and functionality of a wide range of products. Our extensive range of fasteners encompasses 26-27 different types, making them versatile and suitable for a wide range of industries. These fasteners are known for their strength, durability, and corrosion resistance. They provide reliable and secure connections in industries such as construction and infrastructure development, ensuring the longevity and safety of assemblies. Synergy Steels has been the pioneer in stainless steel flats, and we have been instrumental in delivering and catalyzing the growth of the utensil market in India.
Which are the sectors you are banking in for growth in this calendar year?
What are the steps you have taken to protect your products against counterfeiting?
At Synergy Steels, safeguarding the authenticity of our products against counterfeiting remains of utmost importance to us. To this end, we employ rigorous quality control measures at every stage of our manufacturing and supply chain processes. Our stainless steel products undergo thorough inspection and testing to ensure they meet our high standards of quality and authenticity. We also invest in advanced packaging and labelling solutions that incorporate tamper-evident features, in addition to attaching barcodes, bartags and QR codes, making it easier for our B2B and B2C customers to verify the authenticity of our products.
Which are the sectors you are banking in for growth in this calendar year?
In this calendar year, we are banking on growth opportunities in key sectors such as infrastructure, railways, renewable energy, and the electric vehicle (EV) ecosystem. In this context, we’re happy to note the recent interim budget’s substantial allocation of Rs 11,11,111 crore towards infrastructure development – for we believe it will significantly drive demand for stainless steel, especially when it comes to coastal infrastructure projects. Further, in line with the government’s plans to modernize the railways across the country, we do foresee a surge in demand for stainless steel. We believe that these key sectors present promising avenues for our growth strategy, and we are strategically positioning ourselves to be able to capitalize on these opportunities that appear to be the key demand drivers for this calendar year.
Please take us through your manufacturing facility
An ISO 9001:2015 certified company, we have a state-of-the-art industrial set-up with customised plants equipped with the latest technology-driven machinery. We operate three state-of-the-art manufacturing setups, including a Steel Melting Shop, Wire Rod Mill, and Alwar Rolling Mill. Our facilities are equipped with advanced testing infrastructure and automated machinery, ensuring high-quality production. We also have a Corporate Office based out of New Delhi India.
Located in Matsya Industrial Area, Alwar Rajasthan, we have a wire drawing facility, precision heat treatment, SMS with AOD, and continuous caster. The Integrated Stainless Steel Melt Shop in Alwar has an integrated Raw Material Handling Yard, Test Furnaces, Quality Control Labs for Metallurgical Research, Induction Furnaces, AOD, and Billet Caster with a Melting Capacity of 250,000 MT Per annum. The Integrated Wire Rod Mill is Fully Automated with a Reheating Furnace, Precision Heat Treatment & annealing facilities, a Pickling Facility and a Garret Coiler to produce Wire Rods between 5-34 MM. We have a Super Specialized downstream value additive product portfolio with advanced testing infrastructure that includes Wire Drawing lines to produce Fine Wires, Stainless Steel Flats, Bright Bars, Fasteners and Stainless Steel Rebars.
To keep abreast of the competitors a company has to continuously innovate and improve on its products. What are the R&D efforts you are taking in this regard?
At Synergy Steels, we recognize the importance of continuous innovation and product improvement to stay competitive in the market. To this end, we've built a robust research and development (R&D) department devoted to driving innovation across our product lines. We focus on optimizing our manufacturing processes for increased efficiency, reduced costs, and minimized environmental impact. Our R&D team explores novel production techniques, equipment upgrades, and automation solutions to elevate productivity and uphold quality standards. In line with our mission to consistently innovate and maintain a diverse product line, we have recently launched production of Stainless Steel Rebars/Reinforcement bars. By introducing these rebars, we aim to provide our customers with efficient, reliable, and durable solutions that enhance the durability and strength of concrete structures, especially in coastal areas. Further, we have also expanded our product range to include 5mm stainless steel wire rod across various grades.
Further, we have also placed immense focus on sustainability – we've conducted a thorough carbon mapping exercise to gauge emissions at our manufacturing facility. We are also in the process of transitioning towards solar power to fulfil a significant portion of our energy needs, building partnerships with solar companies. Additionally, we use green hydrogen generated by renewables that is used with direct reduced iron in our steel-making process. We have also installed carbon capture top gas recycling technology that can recycle upto 90% of the furnace exhaust gas.
How does volatility in steel prices affect your business?
We do understand that volatility in stainless steel prices, and more so in raw material costs, poses a significant challenge for our business and the industry at large. Any fluctuations in this regard directly impact various aspects of our operations, including production costs, raw material procurement, and finished goods export strategies, ultimately affecting our overall profitability. To this end, we closely monitor raw material price trends, implement flexible pricing strategies, maintain diversified supplier relationships, and engage in proactive risk management measures.
Which are the geographies you cater to in India? Are there plans to expand your product range into more markets?
Our market presence is strategically distributed across key regions, with significant influence in Delhi-NCR, Maharashtra, and Gujarat. In these dynamic markets, our established market share ranges from 30% to 35%. Building upon this foundation, our strategic objective is to further improve our market presence, and we intend to achieve this through a combination of innovative strategies, and customer-centric initiatives, along with our consistent dedication to quality and excellence. By delivering value and fostering lasting relationships, we are poised to reinforce our market standing and emerge as a preferred choice for our customers in the stainless steel long products market.
What are your growth plans for your organization for the next three years? Are there plans to expand capacity or a new manufacturing plant in the offing?
Currently, our production capacity for stainless steel stands at 250,000 tonnes annually. However, we are constantly engaged in charting a path for further growth. As part of our expansion vision, we are in the process of setting up an additional greenfield project to increase our stainless steel production capacity further.
