MPL Group, a renowned name in the industry, is planning to achieve 1 million tons of steel finished products capacity in the next five years. According to Mr. Hitesh Agarwal, CEO, MPL Group, the company is setting its eyes on the export market, which it considers to be a lucrative option for future.
Tube & Pipe India: Kindly Walk us through the illustrious business journey of MPL, highlighting major achievements and crucial milestones.
Hitesh Agarwal: MPL started in 1959 by manufacturing CTD (Cold Twisted Deformed) bars or steel rebars. It was the first steel re-rolling mill in the southern state of Andhra Pradesh. Since then, we have grown multifold and today span an empire having turnover of INR 1500 crore. We manufacture and supply finished steel pipes to 15 states across the country and export to around 5-7 different nations. We are currently amongst the top 10 manufacturers in our segment in India. We have taken our product offering under the MPL brand further and expanded to other materials as well. We have already laid down our roadmap for achieving 1 million tons of steel finished products in the next five years.
TPI: According to you, what has helped the company to reach the pinnacle of success?
HA: We firmly believe in the value system and integrity of our company. MPL is known for honoring all its commitments and delivering superior quality products on time. Being an integrated steel manufacturer has helped us to control the costs and get the best quality, which has been well-accepted in the market. It has also enabled us to deliver our products across various regions of the country. The brand visibility we have built in the industry is the result of all the hard work put in by three generations of my family, and the contributions made by many people who stood with us through thick and thin. It has been a long and satisfying journey.
TPI: What does the product basket of MPL contain? In what sectors are your products majorly used and what new sectors are you eyeing at the moment?
HA: MPL offers a wide range of products, including high-quality steel pipes, cement, logistics solutions. Our steel pipes are used in over 4,000 applications across various industries, meeting international standards with command high brand value in South Indian Market. We have created a niche for ourselves in the engineering components and general engineering product market. The cement division produces OPC and PPC grade cement, catering to construction and infrastructure. MPL is also expanding its logistics hub, providing modern supply chain services. In terms of new sectors, MPL is eyeing renewable energy with a proposed solar rooftop project and power plant.
TPI: Where in India do you enjoy a strong demand?
HA: South is definitely our forte. MPL has been here for so many years. We personally know a lot of our dealers and distributors at the very grassroot levels of our country. They have an emotional connection with our company because our businesses have flourished and we all have grown together.
TPI: In the backdrop of the European Commissions’ Carbon Border Adjustment Mechanism (CBAM), which is still in the transition stage, what role does sustainability play in your business operations?
HA: Sustainability is definitely the talk of the hour and also features on our future roadmap on a priority basis. Since we are eyeing the export markets, CBAM is something we should be prepared for. Keeping our energy competencies in line with sustainable goals, we have installed a 4 megawatt solar rooftop. We have increased the use of more reprocessed or recycled steels coming from scrap. We are also exploring other lucrative energy options such as hydro or solar to meet the CBAM requirements. All these efforts contribute to achieving our sustainability goals.
TPI: What are some of the innovations that you’ve been relying on to stay ahead of the curve?
HA: Being a steel manufacturer, we procure scrap, which is a very tricky part in the domestic scenario. We are currently on a nobel way of curving technology integration. Apart from that, we’re trying to focus on more value-added products, which are not easily available in the market, such as smaller dia tubes with particular applications.
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TPI: As a manufacturer, what are some of the major challenges that you have encountered in the past few years?
HA: The skill level of the human resources really needs to be improved because even though we have a huge pool of talent, they are not business ready or future ready. We appreciate both the state government and the centre for taking initiatives in this direction and giving priority to upskilling of the workforce. This would help businesses to grow and thrive faster because the learning curve on the job would decrease.
TPI: The industry has become more organized in the past few years and the government has implemented certain policies and measures in this regard. What regulations would you like the government to introduce further for the ease of doing business?
HA: Being a Telangana-based manufacturer, I’m all praise for the state government. They have something called a single window clearance with time-bound approval deadlines. It has really helped the businesses. Telangana is one of the highest ranked states in the country in terms of ease of doing business. We get approval sitting in our offices or online using e-governance and related tools. It aids transparency and puts accountability on part of the public sector officers. Electricity is one sector that really needs improvement. Though there have been efforts in the past, the sector has remained non-aligned till date. This is one segment, which needs urgent government intervention.
TPI: Please share your experience at the second edition of Tube & Pipe Fair in Hyderabad.
HA: It’s the second day and the place is still buzzing with a lot of energy. Everyone is very upbeat about the future of what India holds for the world. It’s great to see all our industry peers here, growing year over year. Their journey and success inspire us to go further and strive for a better tomorrow, while continuing to do what we have been doing for all these years.
