India's Top 500 Companies 2016

India's Top 500 Companies 2016


Please give us a brief overview of your company and its product portfolio.

Rimjhim Ispat is a leading name in the Indian Stainless Steel Industry. Our company was established in 1995 and has been working ever since with the sole aim of manufacturing world class Stainless Steel products in India. Today, we are recognized not just in India but also worldwide with 10% of our turnover coming from exports. We have grown to become 17th largest Stainless Steel Long products manufacturer in the world.

Primarily, we are a stainless steel manufacturing company with a small exposure in the mild steel segment. Our facilities include Steel Melt Shop, Wire Rod Mill, Wire and Bright Bar plant, HR Coil mill, CR Coil mill, Structure mill, TMT Rebar mill and Round and Flat mill. We have oriented our product mix to keep pace with the market demand. A wide product range and a large market share helped us achieve a turnover of over Rs.1300 crores in 2015-16. The reason for our success lies in the expertise of our team, strong focus on customer need and ability to adapt quickly & efficiently.

What are the key factors that differentiate your company from your peers?

Rimjhim Ispat has the widest range of product offering in Stainless Steel in India. We are the only company in the country offering both Long-products (Wire Rod, Wire, Bright Bar) as well as flat-products (HR Coil, CR Coil) in Stainless Steel. This has only been possible because of our universal product acceptability, due to our philosophy of never compromising with quality. We have stringent quality checks, starting from raw material segregation to testing of finished product, to ensure only the best quality material goes out in the market. Diverse product portfolio helps us cater to varying segments

Another factor differentiating us from our peers is cost-efficient best practices adopted by my team. We understand that the only way to survive through the downturn is to cut down our cost of production. We have invested on men and machinery to make up for our geographical disadvantage. We are based in Bundelkhand region of UP, far away from the port, which is a huge disadvantage. 90% of our raw material is imported and a huge demand of Stainless Steel products is overseas, so we have to bear additional to and fro transportation.

Most steel companies are reeling because of heavy debt burden. I believe in using internal cash accruals to fuel growth and capital spending instead of increasing leverage. This has helped us with low debts on our books and keeps us in good stead in the coming times.

What are your company?s plans for the next five years?

We have always been moving forward with one eye on the market scenario and one eye on our customer demand. In the coming years, we want to push aggressively in our newest segment of flat products. We plan to increase our cold-rolling capacity to cater to the growing demand of Stainless Steel Pipes & Tubes. With that being said, we don?t want to leave long-products too far behind. Our plan for next five years include:

How will the Government?s ?Make in India? program affect the steel industry and impact your company?

?Make in India? program is a positive step, which will definitely help the manufacturing sector grow but the government shouldn?t forget about already existing manufacturing units. Steel industry has been provided relief through imposition of MIP and safeguard duty but Stainless Steel has been left out from the list. I expect government to review the dumping of Stainless steel goods from china and protect the domestic industry.

Overall, ?Make in India? will definitely provide impetus to not just Stainless Steel but Steel industry in India. A huge portion of Stainless Steel goes into industrial consumption so growth of manufacturing sector will help in growing Stainless Steel industry. I?m also excited about the Smart City initiative and the increased funding in the infrastructure, that has been announced in the current budget. Stainless Steel use in household sector and city infrastructure is increasing. The new initiative will definitely provide a big boost to the steel industry.

How is oversupply from Chinese steel industry impacting the Indian steel players? What measures is your company taking or planning to take in order to reduce the impact?

Indian steel industry was bleeding because of dumping of Chinese steel. Chinese mills have lot of spare capacity due to global demand weakness, which is forcing them to dump the material in India. These mills were getting export subsidies from their government, which was helping them make up for the excessive low selling price.

Steel Industry has got a breather from the imposition of MIP, which will definitely help their bottom line but the government has turned a blind eye on the problems of the stainless steel industry. I hope they will look into the problem soon. There is not much that the company can do against such dumping, other than cutting down our cost of production to compete with them. Low cost of production is helping us compete with the Chinese products domestically as well as in overseas markets.

Keeping our customer?s demands in mind, we keep up our quality and ensure timely delivery. This has led to high customer satisfaction and a customer base, which has been associated with us for a long time. We strive to provide the best product and service to prevent our customer from defecting towards the Chinese product.

What is your outlook for the Indian stainless steel industry for the next 10years?

Stainless Steel industry in India is currently going through a rough patch due to dumping of material in China. Most of the Stainless Steel mills are suffering heavy losses and have idle capacity. I expect a turnaround soon with government planning on anti-dumping duty. Also, global stainless steel demand has been growing with CAGR of 5.44% over last 25 years. It is way above the growth rate of Carbon Steel, Aluminum or Copper. I expect the growth to continue with India leading the growth as we have a very miniscule stainless steel consumption of 1.6 Kg/capita as opposed to over 45 Kg/capita in Taiwan and China.

Stainless Steel is already a huge part of our daily lives and we are surrounded by it. I expect the use to grow due to strength, noncorrosive nature and aesthetics of the material. Stainless Steel Pipes & Tubes are finding increased use in household as well as the industrial use. It will be a major growth sector in the upcoming years. I expect Indian Stainless Steel industry to recover from the current slowdown and grow to become the second largest SS producing nation after China in the next 10 years.