At a time when demand has been slowing down in the residential as well as commercial property segment, steel manufacturer Kamdhenu Ispat is upping the ante. Bullish about its marketing skills, the company is expanding its TMT bar manufacturing capacity at its Mehsana plant in Gujarat.
"Input costs have been rising for the steel industry. Plus, the demand in the real estate market is also slowing down. But we are bullish about our marketing abilities and want to reduce our input costs by increasing volumes. Hence, we are expanding our steel manufacturing capacity by another 50,000 tonnes per annum which should commission by 2013," said Sunil Agarwal, managing director, Kamdhenu Ispat Limited. Currently, the company manufactures about 100,000 tonnes of steel per annum from its Mehsana plant near Ahmedabad.
Talking about its new technology, Agarwal elaborated that the company has introduced some of the most advanced innovations in steel segment. "We are making upgraded 500D and 415D TMT in the remotest parts of the country. The new and improved varieties of our rebars; 500D and 415D are the best. Both the varieties are tested under extreme weather conditions with anti-water borne damage quality. Since these TMT bars are used as support pillars for all construction, all engineers recommend a strong base to set the building upon. In case of earthquake these two technologies is very useful which is why both 500D and 415D are earthquake resistant as well," he added.
Also, in a bid to reduce input costs through higher volumes, the company has also opened up a retail outlet recently in Ahmedabad. "Retail is also one of the ways that we are looking at enhancing our volumes. So far, we already have around 300 dealers across the state of Gujarat. However, from the government side, the interest rates have to come down to sub-10 per cent if the industry has to survive," said Agarwal.
Moreover, Kamdhenu Ispat has a strong franchisee network comprising of over 50 associates those are providing excellent service in all part of our country with a view to make advance grade steel products available swiftly and economically.
In Gujarat, apart from being a one of the leading providers of TMT, Kamdhenu Ispat has also launched its PVC pipes and plywood in the region. Meanwhile, of its total turnover of Rs 5,000 crore, the state already contributes about Rs 400 crore annually. "Post expansion, we expect Gujarat to do an annual turnover of Rs 600 crore," Agarwal added.
The government today said it has granted Maharatna status to Bharat Heavy Electricals Ltd and Gas Authority of India Ltd.