Satyam Iron & Steel Company Private Limited, a fully integrated steel plant, is planning to double its manufacturing capacity, upgrade product quality and enhance its presence across the country, especially down South, in the next three years. This was revealed by Mr. Rohit Pareek, Strategy and Business Development Manager, Satyam Iron & Steel Company Private Limited, during his recent interaction with Tube & Pipe India.
Tube & Pipe India: Kindly walk us through the business journey of Satyam Iron & Steel Company, highlighting major achievements and crucial milestones.
Rohit Pareek: Satyam Iron & Steel Company Private Limited is a pioneering sponge iron manufacturing enterprise and a fully integrated steel plant, which has been doing its business with a set standard of principles and ethics for the past 24 years. We have always maintained the philosophy of unity and growing together with all our stakeholders. Mr. Rahul Agarwal, Director, Satyam Iron & Steel Company Private Limited, has developed a very good market base and a great network of dealers and distributors, owing to his over 25 years of experience in the industry.
The bond we share with our dealers and distributors forms the core strength of our company. Satyam Steel believes that our people are our greatest assets. It is their hard work and dedication that has helped us become a fully integrated steel plant. Our focus on core values and maintaining good relations with our stakeholders, combined with our high-quality products, has helped us to achieve phenomenal growth in the tube and pipe industry.
TPI: Kindly tell us more about your market footprint and major clientele.
RP: Currently, we are not a pan-India group. Our clients are majorly based in Uttar Pradesh, Bihar, Jharkhand and West Bengal. We are currently doing very good business in these states. We plan to go pan-India in future with more products and capacity enhancement.
TPI: What does the product basket of Satyam Iron & Steel boast of? Which are the sectors where your products find application?
RP: The product basket of Satyam Iron & Steel boasts a diverse range of high-quality products designed to meet various industrial needs. Our setup includes sponge iron, DRI and power plant components, offering MS billets, HR strips, MS (ERW) pipes and various structural products. Our steel products are essential for constructing robust and durable structures. Billets and strips serve as raw materials for other manufacturing companies. The newly-launched MS ERW pipes are utilized in various frameworks and infrastructure, providing essential strength and stability across a wide array of projects. We make products for the betterment of the common man.
We have launched “Satyam Pipes”, a high-quality ERW pipes, and we are looking for dealers, and distributors pan-India.
TPI: Kindly give information about the challenges you face in the smooth running of your business.
RP: In the secondary market, the major challenge from the initial days has been to maintain the quality of the material. Our Director- Mr. Rahul Agarwal has taken up this challenge and handled it well. He has given us the best of machines to enhance the quality of our products. We take care of the whole process, starting from the raw material used to make the coil, to melting and end-finishing. We produce the best quality billets, MS strips and sponge. We even take care of the straight portion of pipe, to optimize its quality. Another challenge we face in the secondary market is the fluctuation of rates.
Since the secondary markets are highly volatile, it is also a big challenge to maintain robust relations with dealers and distributors. If we fail to develop their faith in us, we will not be able to survive. The company does not just sell them a product, it wins their confidence. We call them a part of the Satyam family. We give them the best price protection. As per our policy, we never force our dealers and distributors to purchase material when rates are down. We make sure that they do not suffer any loss. Whenever we ask our dealers and distributors to do something new, they’re very eager to collaborate with us. You will not find these kinds of ethics and lasting relations in secondary markets. Most of the companies in this market cannot match up to our ethics and standards.
The tube and pipe industry is poised for a big boom in the next 5-10 years. It’s going to be a major player in the development of the country in the next decade.
TPI: Please suggest some policies or regulations, which the government can introduce for the betterment of the industry.
RP: The government should come up with a policy to keep a tab on freight charges. There should be some uniformity in freight rates across the country. Though a lot has been done in terms of infrastructure, much work is needed on the logistics front to improve the demand and supply ratio.
TPI: Please share your views on the Indian tube and pipe industry.
RP: I have been part of this industry for the past 12-15 years. The market has witnessed ample growth in the last five years and the trend is expected to continue in future. In fact, the tube and pipe industry is poised for a big boom in the next 5-10 years. It’s going to be a major player in the development of the country in the next decade.
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TPI: Please share your future development plans.
RP: We are coming up with an INR 500 crore investment plan to upgrade the quality of our pipes and give better service to our customers. In the next three years, we plan to double our production capacity and increase our market presence across the country. Our current manufacturing capacity is 15,000 to 20,000 tonne pipes. We are planning to double this capacity in the next 1-2 years. We are also planning to capture 70-80 percent of the industry, at least in the five states we currently operate in. We are also looking forward to setting our footprint in South India. Major tube and pipe markets in Hyderabad, Bangalore and Chennai are currently governed by local players. We are confident of making ripples in the southern part of the country, on the basis of our high-quality products, core values, and strong dealer & distributor network.
TPI: Kindly share your experience at the s econd edition of Tube & Pipe Fair 2024 in Hyderabad.
RP: It’s a great show. The organizers have done a commendable job of bringing all channels of the tube and pipe industry, including major pipe manufacturers, pipe machine makers, dealers, distributors, suppliers and buyers, under one roof. You guys are doing a great job. Satyam Iron & Steel is looking forward to making lasting collaborations and getting some wonderful insights about the industry from this fair.
