Starting with a single reinforcement steel bar manufacturing plant, Kamdhenu Group has grown to be a leading brand with over 80 manufacturing units across the country. The group is the first company to introduce KAMDHENU PAS (Power Alloy Steel) 10000, a state-of-the-art power alloy steel product specially designed to redefine the construction scenario of the country. They’re currently in the midst of a fund-raising round of approximately INR 100 crore and planning to expand their capacity from 40 lakh MT of TMT steel bars to 50 lakh MT of TMT steel bars. In a recent interaction with Tube & Pipe India, Mr. Sunil Kumar Agarwal, Director, Kamdhenu Limited shared about his company, an outlook for the steel industry in India, and the challenges and opportunities you foresee in the steel TMT bar industry. He also talked about the future plans of the company and recent developments.
Tube & Pipe India: Briefly describe Kamdhenu Limited’s journey in the steel industry and its current position in the market.
Sunil Kumar Agarwal: Kamdhenu Group, founded in 1994, is today a leading brand with a nationwide presence. What began with a singular focus on providing the best quality TMT bars in the market with a single reinforcement steel bar manufacturing plant at Bhiwadi, Rajasthan has today grown to more than 80 manufacturing units across the country via our unique franchisee-based business model. The rapid ascension achieved by the brand from a single unit to the leading brand with a nationwide presence is a benchmark in the industry.
The group pioneered a business model that is geared towards sustained growth and is receptive to the evolving nature of consumer demands. Our products are affordable, yet offer the best possible quality, which enhances their acceptability among end users. We are rigorously expanding to meet the current and future demands. Also, the government’s push towards ‘Make in India’, world-class infrastructure creation, and revival in consumer demand presents an exciting opportunity for us to ramp up and contribute to nation-building. The dealership and distributor network associated with Kamdhenu has also witnessed swift growth. There are around 8500 exclusive dealers and distributors for our steel business.
TPI: How do you view the current business outlook for the steel industry in India, considering recent market fluctuations and global trends?
SKA: As a fast-developing nation, India always had a strong demand for TMT bars. The demand from construction activity especially in the real estate and infrastructure sector has always been strong despite occasional hiccups. The government’s focus on infrastructure-led economic growth reflected in the budgeted capital expenditure also strengthens the positive outlook for the sector. Modern construction and design evolution has led to vertical as well as horizontal growth with increasingly intricate designs. This has led to increased demand for premium TMT products that can support such constructions.
TPI: What are the key challenges and opportunities you foresee in the steel TMT bar industry in the coming years?
SKA: India is heading towards an exceptionally bright and growth-oriented future. We don’t see India’s growth trajectory going for a descent anytime soon. The TMT sector heavily relies on real estate and infrastructural development, the more they flourish, the more it will benefit our sector. Fortunately, with the continuous urbanization of the nation, we are witnessing an upward shift in the demand for TMT bars and steel in general. We are confident and bullish on the future of the TMT sector in our country.
The main challenge to industries in a developing nation such as India has always been transporting materials/products from one place to another. If the transportation cost of a product increases, it is natural that the overall cost of the product will also increase. However, we are seeing initiatives being taken to tackle this issue. Projects such as Sagarmala, Bharatmala, and UDAN RCS are a much-needed step towards regulating the freight cost.
TPI: What are your views on the role of technology and digitalization in shaping the future of the steel industry?
SKA: In recent times, the field of steel structure design and construction has been significantly influenced by a range of innovative materials and technologies. Notable advancements include the utilization of high-strength steels, self-compacting concrete, and Building Information Modeling (BIM). Additionally, 3D printing, robotics, automation, and smart materials are also making an impact on the design and construction of steel structures. As these advancements progress, we anticipate witnessing further innovation and increased efficiency in how steel structures are designed and built.
Kamdhenu has always been at the forefront of innovation and technology. I would like to mention that we are the first company in India to introduce KAMDHENU PAS (Power Alloy Steel) 10000, a state-of-the-art power alloy steel product, specially designed to redefine the construction scenario of the country.
“We have covered brand sales turnover of INR 21000 crore in FY 23.”
TPI: What major trends do you foresee shaping the Indian steel industry in the coming years, and how will Kamdhenu position itself to thrive in this environment?
SKA: We foresee several transformative changes in the steel structure industry over the next decade. These changes are driven by evolving technologies, sustainability concerns, industry digitization, and shifts in consumer preferences. We anticipate a significant shift towards adopting advanced technologies in steel manufacturing and distribution processes. Automation, artificial intelligence, machine learning, and data analytics will play a crucial role in optimizing operations, improving efficiency, and ensuring the production of high-quality TMT bars.
We plan to invest in state-of-the-art manufacturing technologies and implement smart production processes to enhance the quality and precision of our TMT bars. This includes automated quality control systems and data-driven predictive maintenance to minimize downtimes and reduce operational costs.
Sustainability will be a paramount concern in the steel industry. There will be increased pressure to reduce the carbon footprint and implement eco-friendly practices throughout the entire steel production cycle. We are committed to adopting greener and more sustainable practices in our manufacturing processes. This includes investing in energy-efficient technologies, utilizing recycled materials, and implementing waste reduction measures. Additionally, we aim to obtain relevant certifications that highlight our commitment to sustainability.
We are proactively preparing our organization for the forthcoming changes in the steel structure industry by investing in technology, sustainability, digitization, and customer-centricity. These initiatives will ensure our ability to adapt, thrive, and maintain our position as an industry leader in the evolving landscape of the steel industry in India.
TPI: Have there been a ny recent developments at your company, if so kindly share them with us.
SKA: These are exciting times at Kamdhenu Limited! I’m happy to share that we’ve experienced significant growth and positive developments recently. We have covered brand sales turnover of INR 21000 crore in FY 23.
This reflects the hard work and dedication of our team, as well as the growing demand for our products and services. To capitalize on this momentum and fuel further expansion, we’re currently in the midst of a fund-raising round of approximately INR 100 crore. These funds will be strategically invested in acquiring stakes in select franchisee units, exploring new business ventures, and strengthening brand position and image. We’re confident that these developments will position us for continued success in the years to come. We’re passionate about our mission and excited to contribute positively to the industry.
TPI: Can you elaborate on your strategies for market expansion and building a global presence in the Steel TMT Bars market?
SKA: Kamdhenu has always been about offering “Best Quality at Best Price” and brand positioning of our products has always been a top priority. The demand for quality TMT bars from the housing sector in India is growing at a rate of 6-8 percent compound annual growth rate (CAGR) annually. Looking at the demand for our products, we are planning to expand our capacity from 40 lakh MT of TMT steel bars to 50 lakh MT of TMT steel bars through the franchisee route.
Our decentralized production model has already made a huge difference in the market. Not only do we offer high quality at affordable prices, but we are also always prepared to take the next step in efficiency and technology adoption. We look forward to undertaking strategic alliances and tie-ups of unorganized and medium-sized manufacturing units, guiding them through technical upgradation, implementation of a quality management system, and effective distribution through the exclusive dealer network.
