One of the leading GI wire manufacturers in India, Systematic Group, is all set to introduce wires made from Green Steel in the country. They have recently acquired a new manufacturing unit in Kolkata to expand their operations and cater to the Eastern market region. This was revealed by Mr. Sidharth Agrawal, Managing Director of Systematic Group, during an interaction with Wire & Cable India magazine.
Wire & Cable India: Please share your views on the Indian vis-a-vis the global steel wire industry. What is the role of the Indian government in the growth of this sector?
Sidharth Agrawal: The Indian steel wire industry has come a long way since its establishment in the 1920s. India’s steel wire market is expected to grow faster at a CAGR of 6-7 percent per annum than global average of 2 percent per annum by 2030, driven by strong growth in sectors like infrastructure, automotive and agriculture.
The energy sector has also become one of the thriving sectors in the last few decades, with steel wires being predominantly used in manufacturing transmission lines, steel core wires, overhead power lines, and ground wires for wind power. Growing demand from the energy sector is one of the factors driving the steel wire segment’s market growth.
The Indian government has been providing support and nurturing the growth of the steel wire industry through a number of policies. Under the recent Production Linked Incentive (PLI) scheme for Specialty Steel with budgetary outlay of USD 6.32 billion over five years, the government aims to promote specialty steel manufacturing in India.
The government is providing incentives to put up steel wire plants in rural and semi-rural areas, providing export incentives for export of high carbon, alloy steel and spring steel wires, as well as reducing power tariffs for industries to make them a practical unit.
The government is also focusing on raising awareness on the emerging market of Green Steel. Green Steel, is steel produced through environmentally-friendly methods, aims to reduce CO2 emissions by utilizing renewable energy sources like solar, wind, or hydropower, along with alternative reductants such as green hydrogen or biomass-based charcoal.
This approach optimizes production processes, minimizing waste and energy consumption. The benefits of Green Steel include a reduced carbon footprint, improved air quality, and enhanced resource efficiency through increased recycling. Steel is a highly carbon-intensive sector & contributes 8 percent of global CO2 emissions.
For India, the sector is responsible for 11 percent of total emissions or about 250 MTCo2e in absolute terms. However, challenges include higher production costs, scalability issues, and the need for global standardization. Despite obstacles, Green Steel represents a significant stride towards a sustainable steel industry, driven by technological advancements and growing demand for eco-friendly materials.
Green Steel demand is rising faster than production can ramp up. The global Green Steel market was valued at USD 200 million in 2022, and is projected to reach USD 364,493.53 million by 2032, registering a CAGR of 113.6 percent from 2023 to 2032.
WCI: What are the major ongoing challenges in the Indian steel wire industry?
SA: The Indian steel wire industry faces several challenges that hamper operational efficiency, innovation, and growth. A significant obstacle lies in the difficulty of obtaining wire rod at international pricing. The government has restricted imports of wire rod to only those certified by the Bureau of Indian Standards (BIS), yet few wire rod mills possess this certification. Consequently, the availability of high-quality wire rod is limited, hindering the development of new products that meet international standards. The industry will have to prepare to provide the best quality products at competitive prices.
Another challenge shoots from the relatively lower consumption of steel wire rods in India compared to developed nations. Wire rod constitutes 5-6 percent of steel production in India (as compared to China with 15 percent and EU at 8 percent) and with 20 percent exports leading to a 4-5 percent domestic consumption. Although the industry has showed strong growth in recent years, it is currently experiencing a slowdown due to surplus productioncapacities across the sector.
One contributing factor to this low consumption could be the lack of awareness and understanding regarding new product development and the benefits of wire & wire products such as steel fibres and ripped weld mesh, which are extensively utilized globally but have limited penetration in India.
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WCI: How can these challenges of the industry be addressed? How is your company contributing towards this transition?
SA: Addressing these challenges is vital to safeguarding the industry’s competitiveness and fostering sustainable development. It is crucial for the industry to focus on delivering good quality wire rods at competitive prices. To tackle the surplus capacities manufactured, we will have to find ways to expand our export share in this market.
Additionally, there is a pressing need to educate consumers about the usage and advantages of new product developments, particularly in the area of Green Steel, which plays a pivotal role in reducing carbon footprint.
At Systematic, we are committed to responsible growth and embracing environmentally friendly practices. Over 30 percent of our manufacturing land is dedicated to green zone gardens, reflecting our dedication to preserving and enhancing natural spaces.
Furthermore, our investment in solar energy infrastructure and rainwater harvesting initiatives emphasizes our commitment to sustainability. Through these efforts, we strive to minimize our environmental impact while promoting a greener and a more sustainable future.
WCI: Brief us about your specialized products along with their USPs.
SA: We specialize in generating quality galvanized iron wire products in various grades. We offer GI wire in various sizes, coating, thickness and diameters. We are one of the leading technology companies in steel wire transformation and coatings.
At Systematic, we’re proud to be at the forefront of innovation in India, having developed zinc aluminium alloy coated wire under our brand name “GALVASYS.”
WCI: What have been the recent developments at your organization and what are your future growth plans?
SA: We have recently acquired a new manufacturing unit in Kolkata, enabling us to expand our operations and cater to the Eastern market region. We are excited to offer a diverse product range tailored to meet the needs of our customers in this region.
WCI: Share with us about your major projects and clientele you are catering to.
SA: Our steel wires are meticulously engineered to meet the stringent demands of highly specialized applications across various industries. From the power and transmission sector to infrastructure, auto-ancillary, agriculture, and allied engineering industries, our products excel in performance and reliability.
We take pride in supplying our premium steel wires to major industries and sectors, not only within India but also on a global scale. Through our unwavering commitment to quality, innovation, and customer satisfaction, we’ve become a trusted partner in delivering exceptional wire solutions worldwide.
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