Synergy Steels Limited is one of the leading and most trusted stainless steel companies in the country. The company offers a range of high-quality value-added stainless steel long products, catering to various industries and applications. Their latest product, the stainless steel rebar, is an ideal choice for infrastructure and construction projects as it is corrosion-resistant and durable. The company witnessed a 10x growth in revenue, with an increase from USD 30 million in 2012 to USD 315 million in 2019. In a recent interaction with Wire & Cable India, Mr. Anubhav Kathuria, Director, Synergy Steels Limited talked about his company’s journey and growth, recent developments, product portfolio along with his inputs on the challenges in the Indian and global steel wire industry, and how to overcome them.
Wire & Cable India: Could you please take us through the business journey, milestones and achievements of your company?
Anubhav Kathuria: Established in 2012 in Alwar, Synergy Steels is one of the fastest growing stainless steel manufacturing companies in the country. Throughout our existence, we have remained committed to continuous improvement, focusing on innovation and adopting new technologies to enhance our products and services. We have experienced significant growth in revenue, with an increase from USD 30 million in 2012 to USD 315 million in 2019, representing a substantial growth of 10x. This achievement corresponds to a CAGR of 42%. Additionally, our operations consistently generate positive EBITDA within the industry, contributing to month-on-month stability. Our overall business strategy is aligned to ensure consistent year-on-year growth.
Currently, our strategic focus lies in expanding our operations to include value-added products such as wire, bright bars, and fasteners. To support this expansion, we have been steadily increasing our melting capacity and diversifying our product portfolio. One of our significant achievements is our dedication to sustainability. We have forged alliances with solar companies to ensure that 50% of our energy requirements come from renewable sources. This commitment to clean energy not only contributes to our environmental stewardship but also aligns with our efforts to reduce our carbon footprint and create a more sustainable future. Furthermore, we prioritize ESG performance and continually strive to improve in these areas year after year. Our focus on sustainable practices, technological advancements, and diversified product offerings positions us as a dynamic and responsible player in the stainless steel industry. As we continue our business journey, we remain dedicated to delivering high-quality products, embracing innovation, and adhering to sustainable practices, all while striving for excellence in every aspect of our operations.
“ The government has implemented reforms and programs such as the Production-Linked Incentive (PLI) Scheme for specialty steel, foreign direct investment (FDI), establishment of Steel Zones and Clusters, promotion of greenfield investments, research and development for better quality and cleaner steel production, and trade agreements. ”
WCI: Brief us about your specialized products along with their USPs?
AK: We offer a range of high-quality value-added stainless steel long products that cater to various industries and applications. Our most recent launch, the stainless steel rebars are corrosion-resistant and durable, making them ideal for infrastructure and construction projects. These rebars provide enhanced structural integrity, longevity, and design flexibility while minimizing maintenance needs. Our stainless steel 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 stainless steel 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 5mm stainless steel wire rod across various grades. Known for their aesthetic appeal, our stainless steel bright bars are also 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. Our extensive range of stainless steel fasteners encompasses 26-27 different types, 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. Synergy Steels has been the pioneer in stainless steel flats, and we have been instrumental in delivering and catalyzing the growth of the utensil market in India. With our focus on quality, innovation, and customer satisfaction, we strive to deliver exceptional products that meet the unique requirements of our clients.
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WCI: What have been the recent developments at your organization and what are your future growth plans?
AK: At Synergy Steels, we are committed to continuous growth and innovation. In line with our mission to maintain a high quality and diverse product line, we have recently launched production of stainless steel reinforcement bars (rebars). These rebars are designed to offer exceptional corrosion resistance and fire resistance, making them an ideal choice for construction projects. 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. Further, we have also expanded our product range to include 5mm stainless steel wire rod across various grades. As we look ahead, diversifying our product portfolio remains a key focus area for us. We aim to expand our range of value-added products to cater to evolving market demands and customer requirements. We will also continue to invest in research and development to stay at the forefront of technological advancements, ensuring that our products meet the highest quality standards and offer innovative solutions to our customers.
WCI: Could you tell us about your major projects and clientele you are catering to?
AK: As an ISO 9001:2015 certified company, we have a state-of-the-art industrial set-up with customized plants equipped with the latest technology-driven machinery. With our commitment to delivering excellent quality, exceptional service, and timely delivery, we have established ourselves as a leading manufacturer of top-quality stainless steel flats, billets, and wire rods. With a capacity to produce 2,50,000 tonnes of stainless steel, a turnover of more than USD 315 million, and a continuous expansion into value-added products, we have emerged as a key player in the stainless steel long products market. Our major stainless steel and rolling mills are based out of the Matsya Industrial Area in Alwar, Rajasthan, which is at a 140 km distance from Delhi. Over the past two decades, we have built a vast clientele across India, Europe, the Middle East, South America, Southeast Asia, and North America, solidifying our position as a trusted name in the industry. All major fastener and wire producers around the world remain our customers.
WCI: Describe your infrastructure and manufacturing setup for the steel wire sector along with their manufacturing capabilities.
AK: We operate three state-of-the-art manufacturing setups, including a steel melting shop, wire rod mill, and Alwar rolling mill. Our facilities are equipped with advanced testing infrastructure and automated machinery, ensuring high-quality production. We also have a corporate office based out of New Delhi, India. We have a wire drawing facility, precision heat treatment, SMS with AOD, and continuous caster located in the Matsya Industrial Area in Alwar, Rajasthan. The integrated stainless steel melt shop in Alwar has integrated raw material handling yard, test furnaces, quality control labs for metallurgical research, induction furnaces, AOD, billet caster with a melting capacity of 250,000 MT per annum. The integrated wire rod mill is fully automated with a reheating furnace, precision heat treatment and annealing facilities, pickling facility and garret coiler to produce wire rods between 5-34mm. We have a super specialized downstream value additive product portfolio with advanced testing infrastructure that includes wire drawing lines to produce fine wires, stainless steel flats, bright bars, fasteners and stainless steel rebars. We have recently introduced stainless steel rebars to our product lineup, in addition to the introduction of 5mm stainless steel wire rods in various grades. With these new additions, we reaffirm our commitment to innovation. We constantly strive to deliver high-quality value-added stainless steel long products and enhance our product offerings.
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WCI: Please share your views on the Indian vis-a-vis the global stainless steel wire industry. What is the role of the Indian government in the growth of this sector?
AK: The stainless steel wire industry plays a crucial role in the global economy, with applications in construction, automotive, and transportation. The industry has witnessed significant growth due to the increasing demand for stainless steel wire products worldwide. The global stainless steel market had a value of USD 112 billion in 2022. It is projected to reach USD 223.89 billion by 2032, with a CAGR of 8-9% during the forecast period, driven by investments in the construction industry, which are anticipated to augment market growth during the forecast period. India is a key player in the global steel wire business, benefiting from a substantial domestic market. The Indian government has been actively supporting the steel and stainless steel industry through various initiatives, including the National Steel Policy 2017, which aims to increase the country’s steel production capacity to 300 million metric tons by 2030. Additionally, the government has implemented reforms and programs such as the Production-Linked Incentive (PLI) Scheme for specialty steel, foreign direct investment (FDI), establishment of Steel Zones and Clusters, promotion of greenfield investments, research and development for better quality and cleaner steel production, and trade agreements. With growing demand across industries, the stainless steel wire industry is expected to expand globally. By embracing sustainable practices considerations, the industry can successfully meet market demands, while also contributing to a greener and more sustainable future.
WCI: What are the major ongoing challenges in the Indian stainless steel wire industry?
AK: There are several challenges that face the Indian stainless steel wire industry today. These challenges are crucial in nature and need to be addressed to ensure the industry’s competitiveness and sustainable development. The industry is facing a shortage of skilled labour, including technicians, engineers and operators, hindering operational efficiency, innovation, and growth. The industry also lacks the technical infrastructure that is required for improving quality and productivity, thereby affecting the overall cost effectiveness of the production process. Many manufacturers, especially the MSMEs are facing challenges in accessing the necessary funds and expertise to upgrade their production processes.
“ Incentivizing the adoption of environmentally friendly technologies and cleaner production processes will help the industry reduce its environmental impact and ensure compliance with regulations. ”
WCI: How can these challenges of the industry be addressed? How is your company contributing towards this transition?
AK: To address these challenges, it is important to focus on bridging the skill gap through training programs and providing opportunities for workforce development. Investing in research and development will enable the adoption of advanced manufacturing technologies, leading to increased innovation and productivity. Additionally, incentivizing the adoption of environmentally friendly technologies and cleaner production processes will help the industry reduce its environmental impact and ensure compliance with regulations. These measures will contribute to the growth and sustainability of the Indian stainless steel wire industry.
