“We are continually emphasizing on Research and Development and you will be seeing many more announcements with respect to new products from our side in the near future.”
Excerpts of the interview with Mr. Sidharth Agrawal, Managing Director, Systematic Group:
Challenges to reckon with:
This pandemic has brought a lot of uncertainty and vulnerability in the system. There will be many ups and downs in the demand pattern. Companies will be required to have robust systems in terms of technology and human resources. We, at Systematic, have always taken care of our employees and this became clearly evident during the COVID-19 crisis. Companies which have lower fixed costs are bound to benefit and survive in the coming times. In the recent times, there has been a lot of vulnerability in prices and the wire industry needs to get used to these norms. Since the wire industry is a processing industry, the speculation in prices can create havoc.
We are sure to see a lot of consolidation happening in the coming times in the wire industry. The demand for wires has to grow by 0.5 million tonnes annually to reach the government’s dream of 300 million tonnes by 2030. As per the World Steel Association, China is producing 996 million tonnes of steel followed by India (111mt) and Japan (99mt) and USA (88mt). While the per capita consumption in China was 663 kg, in India, it was only 74.3 kg in 2019. We have a lot of catching up to do. Thus, we remain quite hopeful for the demand in future.
“It should be ensured that there is wire rod availability at international prices and the government should put export taxes for all wire rods being exported below Indian prices.”
Expectations from the Government:
The wire industry has a number of expectations from the government:
Firstly, it should be ensured that there is wire rod availability at international prices and the government should put export taxes for all wire rods being exported below Indian prices. Also, it would be quite equitable to bring gas and electricity under GST so as to make the industry more competitive at a global level.
Secondly, it is suggested that the government should have a special fund for research and development, as this will provide an edge to the Indian manufacturers to be at par and even be superior to the foreign counterparts.
Finally, there should be an incentive for companies making efforts for reducing carbon and other pollutants in emission. We have to create a healthy environment in and around us.
Strategies to strengthen the economy post-COVID:
We are continually emphasizing on Research and Development and you will be seeing many more announcements with respect to new products from our side in the near future.
Fast forward to 2021 – the way ahead:
At Systematic, we are going to focus on three key areas:
Implementation of technology in the system: We are happy to announce about the implementation of Salesforce in our system. Also, at various levels, technology has been integrated to minimize human interference to a great extent.
Robust HR Policy: We have introduced many changes in our HR policy to accommodate the changing needs ad believe in empowerment and delegation and that has paid us quite well.
Research and Development: At Systematic, we are always keen to meet the customers’ new requirements and thus, our customers regard us as their dependable partner.
Moreover, we are quite pleased to announce about our new venture in alloy steel at our new production facility in Khopoli, Maharashtra.
