Mukand Limited is looking forward to solidifying its position as the leading stainless steel manufacturer in the country as the Indian real estate market is predicted to grow at 12-15 percent CAGR in next 5-7 years. This was revealed by Mr. S.V. Panse, CEO, Stainless Steel Business, Mukand Limited, during his 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?
SV Panse: The stainless steel wire market is a dynamic sector witnessing robust growth in recent years. This market encompasses the production, distribution, and application of various types of stainless steel wires across industries. The demand for stainless steel wire is primarily driven by its versatile applications in construction, automotive, manufacturing, and aerospace sectors. Factors such as increasing urbanization, infrastructure development, and the automotive industry’s expansion contribute significantly to the market’s growth.
In the evolving landscape of the global stainless steel wire industry, India stands as a resilient player, demonstrating remarkable growth and adaptability, and has the potential to become a major player in the global market. The Indian stainless steel sector, particularly in the domain of SS wires, has showcased substantial potential, leveraging technological advancements and a skilled workforce. The nation’s commitment to quality production and innovation has positioned it favorably on the global stage.
Today, India is the world’s second-largest producer of crude steel, with 125.32 million tonnes (MT) of crude steel production in FY23 and the steel sector in India has grown significantly over the last decade. It goes without saying that the Indian government has played a pivotal role in nurturing this growth trajectory. Initiatives such as ‘Make in India’ and the National Steel Policy have provided a strategic roadmap, fostering an environment conducive to investments and technological advancements.
The government, in its budget for FY 2023-24, announced a massive capex plan, a significant part of which will go towards building infrastructure and has surely contributed towards pushing up domestic steel demand growth. Overall, we also see an increase in per capita steel consumption, which was 2.5 kg in 2022 and increased to 2.8 kg in 2023. However, it is still lower than the global average of 5.7 kg. Though the per capita consumption has not seen a massive increase, we are quite positive that with the recent thrust on several key sectors, this figure will surely go up further.
WCI: What are the major ongoing challenges in the Indian steel wire industry?
SVP: Some of the challenges for the Indian steel wire industry are sourcing of raw materials: fluctuations in the prices and availability of raw materials, especially scrap material, which can impact the production costs and margins.
Having a robust technical infrastructure can help us in manufacturing special quality steel wires, meant for specific usage in critical application industries. Adhering to stringent quality and environmental regulations requires substantial investments in technology and process upgrades. The market is highly fragmented, leading to intense competition and price pressures, particularly for smaller players.
In addition to these, global issues like weak recovery in China’s economy, slow growth rate in the US and Europe, turmoil in global financial markets, and supply-chain issues due to the Russia-Ukraine war and the Red Sea crisis, have surely created some new challenging situations.
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WCI: How can these challenges of the industry be addressed? How is your company contributing towards this transition?
SVP: In the face of challenges within the stainless steel wire industry, Mukand is committed to proactive and strategic measures to navigate complexities and foster sustainable growth. Our approach involves a multi-faceted strategy aimed at addressing these challenges.
Diversification and Innovation
We continually invest in research and development, fostering a culture of innovation that allows us to diversify our product offerings. This enables us to meet the diverse demands of the market and mitigate the impact of market volatility.
Agile Production Planning
To tackle market demand volatility, Mukand has implemented agile production planning processes. By closely monitoring market trends, and maintaining robust communication with clients, we adapt our production schedules to align with changing demands swiftly.
Employee Training and Skill Development
To address the challenges related to workforce skills and development, Mukand places a strong emphasis on training and skill enhancement programs. By investing in our workforce, we ensure that our team is equipped with the skills necessary to navigate technological advancements and industry complexities.
Environmental Sustainability Practices
Given the growing emphasis on environmental sustainability, Mukand is actively incorporating eco-friendly practices into our operations. This includes investing in cleaner technologies and adopting sustainable production methods, aligning with global standards and addressing regulatory challenges.
WCI: Could you please take us through the business journey, milestones and achievements of your company?
SVP: Mukand Limited, a Bajaj group company, is a leading manufacturer of specialty steel long products and heavy machinery in India. Mukand Iron & Steel Works Limited was registered on November 29, 1937 and operated its re-rolling mills and foundry in Lahore and at Reay Road, Bombay. In 1939, two new rolling mills and an electric arc furnace were commissioned at the factory in Lahore. Mr. Lala Mukand Lal, who at that time had a controlling interest in the company, expressed his desire to Mahatma Gandhi to wind up the business due to severe financial crisis. Mahatma Gandhi, in turn, asked Jamnalal Bajaj and Jeewanlal Motichand to take over the company and steer it into the future. In 1941, an ‘Electric Arc Furnace’ was built and commissioned at the Bombay factory along with a large rolling mill. In 1953, shifting of the factory from Reay Road to Kurla was completed and the new ‘rolling mills’ commenced operations at Kurla.
Going forward in 1965, the steel plant at Kalwe commenced operations with the commissioning of the ‘Electric Arc Furnace’ and ‘Continuous Casting Machine’, followed by a Swedish ‘wire rod mill in 1966. These two events heralded indigenous production of high-carbon steel wire rods for the first time in the country and gave a significant boost to the goal of import substitution.
In 1981, the modernization push of the wire rod mill at Kalwe was completed with the installation and commissioning of an ‘Eight-Stand, High-Speed Finishing Block’ and an ‘Easy-Draw Continuous Cooling System’. Mukand was only the fourth plant in the world at the time to adopt this technology for wire rods. In 2005-06, Mukand’s stainless steel got approval for use in the manufacturing of nuclear reactor equipment.
Mukand became the first steelmaker in India having products approved for use in such critical applications. In 2009-10, the enhanced specialty steel making, rolling, heat treatment, pickling, bright drawing, peeling, and wire drawing facilities were commissioned.
Today, the company has two divisions namely steel and industrial machinery. The steel division manufactures specialty steel long products in the form of wire rods, bars, wires and bright bars that feed into the automobile and engineering industries. The industrial machinery division designs, manufactures, assembles and commissions heavy duty cranes, bulk material handling equipment, process plant machinery and turnkey projects. Mukand produces alloy steel from its facility in Hospet, Karnataka and stainless steel from its facility in Thane, Maharashtra.
Mukand has a long history of firsts and achievements that help us stand apart in a sea of competition, from being the first indigenous stainless steel producer in India, to being the first to use the VOD production process, we are the only company in the country capable of producing nuclear-grade stainless steel for the Kalpakkam Nuclear Power Station. Our track record of success is unparalleled in the Indian steel industry.
While these are just a few examples of our commitment to innovation and excellence, we continue to set the standards for quality and performance that the rest of the industry strives to follow to date, we are Mukand!
WCI: Brief us about your specialized products along with their USPs.
SVP: Our comprehensive range of steel offerings encompasses wire rods in sizes ranging from 5.5 mm to 34 mm in diameter, available in various supply conditions such as annealed, pickled and phosphated, as well as hardened and tempered. Our bright bars are manufactured in the sizes ranging from 3 mm to 155 mm in diameter. These high-performance stainless steel products find their applications in the automotive, oil and gas, architectural applications and engineering industries, serving as vital components for manufacturing springs, wire ropes, machined components, heat exchangers and much more.
A closer look at our repertoire unveils a diverse array of stainless steel offerings, including bright bars, wire rods and bars. More than mere products, these offerings embody our commitment to precision and resilience, meticulously engineered for optimal efficacy. Innovation is ingrained in our ethos, propelling us beyond generic solutions to engage in a collaborative dialogue with our clients. This synergy gives rise to tailor-made stainless steel applications, intricately aligned with specific industrial needs, showcasing our dedication to personalized excellence.
Mukand has emerged as a premier force in the realm of premium stainless steel manufacturing in India. Our distinction is rooted in an unwavering commitment to excellence, underpinned by a rich heritage of delivering robust solutions that play a pivotal role in sectors ranging from manufacturing to automotive applications.
WCI: What have been the recent developments at your organization and what are your future growth plans?
SVP: As we cast our vision towards the future, the trajectory for Mukand within the downstream applications and other key end-user sectors for stainless steel is distinctly optimistic. Projections paint a picture of robust demand for stainless steel, underscoring a promising landscape for growth and expansion.
Within the architectural sector, the horizon appears particularly bright. Forecasts anticipate a significant upswing, with the real estate and infrastructure growth touching all-time high.
According to recent forecasts, the Indian real estate market is projected to grow at a compound annual growth rate (CAGR) of around 12 percent to 15 percent over the next five to seven years. This growth is expected to be driven by strong demand from domestic buyers. These substantial growth figures signify a burgeoning market, presenting Mukand Limited with ample opportunities to cater to the evolving demands of this industry.
This optimistic outlook seamlessly aligns with our steadfast commitment to excellence, innovation, and customer satisfaction. As we navigate this dynamic landscape, Mukand Limited stands well-prepared to make significant contributions to the growth and success of the Indian manufacturing landscape, solidifying our position as one of the key stainless steel manufacturers in the country.
WCI: Share with us about your major projects and clientele you are catering to.
SVP: At Mukand Limited, we take pride in our diverse portfolio of major projects and esteemed clientele. Our company has been involved in a range of significant projects spanning various sectors, including infrastructure, automotive, aerospace, oil and gas, and construction. Mukand has been exporting its products to several countries like Italy, Turkey, Austria, Germany, UAE, Malaysia etc. In the automobile sector, our stainless steel products have been integral to the manufacturing of fasteners, shafts, turbo chargers, spring, exhaust etc. In the dairy industry, our products are being used to manufacture agitators and centrifuges whereas in the kitchenware, our products are very high in demand for making cutlery as well as basket units.
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