Leading stainless steel manufacturer Synergy Steels Limited, a USD 300 million revenue company, has revealed ambitious plans to set up an additional greenfield project to increase its production capacity to 300,000 tonnes, while also aiming to export 45 percent of its total capacity in the next two years. This was revealed by Mr. Anubhav Kathuria, Director at Synergy Steels Limited, during his interaction with Wire & Cable India magazine.
Wire & Cable India: Briefly describe Synergy Steels Limited’s journey and its current position in the Indian steel industry.
Anubhav Kathuria: Synergy Steels Limited has been on an extraordinary journey since its inception in 2000, under the visionary leadership of my father, Mr. Subhash Chander Kathuria. As a family-owned enterprise, our story began with my father’s passion for steelmaking. I joined this journey around 2012, bringing fresh perspectives and lessons from business school, and since then, I have continued to lead the operations at Synergy Steels.
Our trajectory over the years has been nothing short of exceptional. From a revenue of USD 30 million in 2012, we have grown tenfold to reach a substantial USD 300 million. This growth isn’t just numerical, we’ve also expanded our range of stainless steel products to include billets, bright bars, rebars, and fasteners.
We strive to fortify our position as the leading long product stainless steel manufacturer in India, and establish a significant global presence in the industry. Our vision, too, extends beyond mere financial success. We aim to create a mark, a legacy that future generations can look back on with pride. Through dedication and hard work, we strive to make Synergy Steels a household name, known not just for its quality products but also for the love and dedication that go into every piece of stainless steel we manufacture.
WCI: What are the biggest challenges and opportunities facing the Indian stainless steel industry?
AK: The stainless steel sector currently faces challenges in securing raw materials domestically, leading to imports. Existing basic custom duties (BCDs) on certain raw material imports have led to increased manufacturing costs. In this regard, it has been heartening to note that the previous budget called for an exemption of BCDs on ferrous scrap and nickel cathode. However, raw materials including ferronickel when being procured from countries outside of AFTA scope, as well as graphite electrodes, molybdenum concentrate and ferro molybdenum, still incur these duties.
Despite challenges, the Indian stainless steel industry stands to benefit from the country’s infrastructure boom. The government’s emphasis on infrastructure development, as evidenced by increased allocations in the budget (at INR 11.11 lakh crore), does present a lucrative opportunity for our stainless steel industry. Positive demand stimulants for the industry, including the expansion of affordable housing schemes and the modernization of railways, reiterate the government’s ‘push’ on infrastructure development.
In this regard, we look forward to the increasing utilization of stainless steel in large-scale infrastructure projects in order to build resilient and robust infrastructure, especially in coastal areas, due to its corrosion resistance properties, which can, as per estimates, curtail annual corrosion-related expenses significantly estimated at USD 100 billion.
Recently, the global steel and stainless sector has witnessed a number of technological innovations and research initiatives aimed at decarbonizing the sector. Initiatives such as producing green steel from aluminum production waste and developing stainless steel with enhanced corrosion resistance for green hydrogen production hold immense potential for our industry.
Embracing such technological advancements can not only drive sustainability but enable us to build a greener and more sustainable world. By addressing these challenges and leveraging emerging opportunities, we can navigate towards a more prosperous and sustainable future for the industry – and the world!
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WCI: India plans to achieve Net Zero by 2070. What steps are the company taking to reduce its environmental impact?
AK: As a company deeply committed to environmental sustainability, we wholeheartedly support India’s ambitious goal of achieving net zero by 2070. Our dedication to reducing our environmental impact is ingrained in our company ethos, and we are actively taking steps to contribute to this collective endeavor.
Over the years, we have shifted our focus to solar power to meet our energy needs. We have established alliances with solar companies to fulfill a substantial portion of our energy requirements. Additionally, we use green hydrogen generated by renewables that is used with direct reduced iron in our steel-making process. Year on year, we continue to improve our ESG performance.
Looking ahead, we are actively progressing towards our target of sourcing 50 percent of our energy needs from renewable sources by 2030. While we make these progressions, we are mindful of the associated investments and are planning and assessing the financial aspects. However, we believe that despite the initial costs, in the longer term, positive steps in this direction will not only be environmentally responsible but economically efficient for our operations, minimizing long-term energy costs.
WCI: How is the company preparing for the future demands of the wire and cable industry, such as Industry 4.0 and digitalization?
AK: Innovation and progress lie at the heart of Synergy Steels’ ethos. We firmly believe that embracing technological advancements and digital transformation is not just imperative but also transformative for our future as an industry. The Covid-19 pandemic had inadvertently called for the acceleration of digital transformation within the manufacturing sector.
At Synergy Steels, we are excited about the potential of digital technology and analytics in scaling our operations, increasing our efficiency, and improving our customer service. In the forthcoming years, our objective is to significantly increase our investment in the digital transformation strategy, aspiring to position ourselves as a technologically advanced company within the stainless steel industry.
Our primary focus is on fortifying our business competitiveness through effective utilization of data and digital technologies, incorporating innovations into both – our production and business processes. Thus, by harnessing the transformative potential of Industry 4.0, we aim to meet the evolving demands of the industry – driving sustainable growth, and delivering unparalleled value to our stakeholders in the digital age.
WCI: Please shed light on your product portfolio.
AK: At Synergy Steels, we are committed to continuous growth and innovation. We take pride in our diverse product portfolio designed to cater to a wide range of industry needs. Here’s a glimpse into our offerings:
Stainless Steel Rebars
In line with our mission to maintain a high-quality and diverse product line, we have recently launched our stainless steel rebars/reinforcement bars. These rebars are designed to offer exceptional corrosion resistance and fire resistance, making them an ideal choice for infrastructure and construction projects. These durable rebars provide enhanced structural integrity, longevity, and design flexibility, while minimizing maintenance needs.
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. We have also expanded our product range to include 5 mm stainless steel wire rods across various grades.
Stainless Steel Wire Rods and Wires
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. With their mechanical properties and dimensional accuracy, our wire rods enable the production of value-added products that find applications in sectors like construction, engineering, and electrical industries. In order to further expand our product range, we have recently introduced 5 mm stainless steel wire rod across various grades.
Stainless Steel Bright Bars
Known for their aesthetic appeal, our 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.
Stainless Steel Fasteners
Our extensive range of fasteners, 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.
WCI: Please share details about your production capacities and market footprints. What are your future growth plans or investments aimed at strengthening your market position?
AK: Guided by our mission statement, which reflects our aspiration to be a global leader, we are continuously striving to expand our production capabilities and market reach. 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 to 300,000 tonnes.
In terms of clientele, we predominantly operate in the B2B space, distributing our market presence across key regions such as Delhi-NCR, Maharashtra, and Gujarat. In these dynamic markets, we command a significant market share ranging from 30 percent to 35 percent. Our primary export destinations include prominent regions such as the European Union, Turkey, and Latin America.
Approximately 30 percent of our production is currently directed towards the export market. Building on this momentum, our objective is to increase our export share to 45 percent within the next two years, reinforcing our position as a frontrunner in the industry and aligning with our mission of becoming a global leader.
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