Our five-year strategic plan strongly emphasises India’s emerging market, which presents exciting prospects for the country’s rapid expansion.

In an interview with B2B Purchase, Ryan Kerr, President & CEO of Minova, and Naivedya Agarwal, Chairman of MRPL and CEO and co-founder of Runaya, walk us through India’s manufacturing potential and strategic expansion of Indian infrastructure and mining industries.

Considering India’s manufacturing potential, where do we stand regarding capacity and revenue?

Regarding total sales and India’s potential in manufacturing, we envision India contributing around 15 – 20 percent of overall Minova revenue. Currently, our export revenue stands at $5 million, with Africa and Australia ranking as the second and third largest segments in our portfolio. This achievement is noteworthy for a relatively new startup. Our five-year strategic timeline focuses on India’s less mature market, offering opportunities for accelerated growth. We plan to harness our experience and exposure to more developed markets to drive success within three to five years.

In light of the procurement constraints in the modern mining world, how do you deal with contractors and project procurement experts?

In the modern mining industry, addressing procurement constraints is of paramount importance. Our approach revolves around securing high-quality products at competitive prices. To achieve this, our proficient supply chain team employs diverse strategies, including reverse auctions, to secure favourable pricing while ensuring strict product compliance with required qualifications and standards.

Our procurement efforts are efficiently streamlined through our extensive global network, featuring specialised teams for chemicals and steel. These teams actively seek opportunities and negotiate deals worldwide, thus optimising the value acquisition process.

Staying competitive within the supply chain is paramount in the broader mining landscape. The procurement processes in mining are becoming increasingly sophisticated, often involving outsourcing to specialists who purchase on behalf of the project. Our primary objective is to establish a presence among key decision-makers who specify the products used in mining projects, including geotechnical engineers and infrastructure applicators.

Our focus remains on penetrating the supply chain, effectively demonstrating that our products adhere to the stringent quality standards demanded by the industry. By doing so, we aim to solidify our reputation as a dependable and competitive supplier in the mining sector.

The BCG report emphasises infrastructure and mining industries. Considering it, how do you estimate the market potential for these industries?

The ground support infrastructure business has reached a noteworthy 1200 crores in the current year, while the mining sector accounts for approximately 800/850 crores. This cumulative figure amounts to a substantial market potential of around 2000 crores within India this year. Historically, this market has demonstrated growth rates that outpace the GDP rate by 2-3 percent. With a projected GDP growth rate of approximately 6.5 percent for this year, it presents a promising opportunity.

To successfully enter these markets, it is imperative to possess a robust product portfolio. In this regard, we have laid the groundwork by establishing a foundational portfolio for the mining sector. Furthermore, we have allocated capital for developing a mesh bond and USDA loan, with plans to become operational within the next five to six months. This strategic approach is poised to facilitate our entry into the infrastructure sector. As our development progresses, our sales and marketing teams will introduce additional products, including injection chemicals and cementation products, further diversifying our offerings.

Have you conducted market surveys or studies to determine which products suit the Indian market?

Our approach is deeply rooted in insights from a BCG study (Boston Consulting Group). This comprehensive study primarily aimed to identify the optimal go-to-market strategy and pinpoint the right markets to target. While our initial presence in the Indian market was limited, our dedicated sales force has established relationships across various industries. We have recently initiated the sale of specific products to certain sectors. As these relationships develop and awareness of our offerings grows, we anticipate significant market expansion.

We strategically leverage the strengths of renowned brands such as Renault and Boscolo, which carry significant weight in the construction and mining sectors. Our longstanding presence in the industry further bolsters our reputation, facilitating our penetration into the market. Moreover, we actively collaborate with external experts, including tunnelling specialists and geotechnical engineers, to further solidify our presence in the market.

How does your benchmarking initiative align your steel and chemical businesses and provide insights into production capabilities?

Our production capacity varies significantly depending on the product type, encompassing steel and chemical products. Presently, we are in the process of implementing a benchmarking initiative aimed at aligning our businesses on a common platform, thereby facilitating benchmark measurement. This initiative will provide us with deeper insights into our production capabilities.

Tell us about the specialised cement developed with US agencies for ground stabilisation, and explain the benefits of the “Spray the Face” product in mining and safety.

Our cementation product range encompasses specialised cements and unique RFP formulations developed in collaboration with US intelligence agencies. These products, resembling a dense cement batch, are meticulously designed to facilitate rapid ground stabilisation. We offer cementation products optimised for quick application, which proudly carry an A-minus rating. Furthermore, our product lineup features “Spray the Face,” which significantly enhances safety and productivity in mining and related applications.

Can you provide more details about your new projects, especially those involving aluminium powder and rare earth magnets?

At MRPL Our products consistently deliver superior quality, surpassing local competitors by a remarkable 70 percent, all while maintaining competitive pricing. This quality advantage is a cornerstone of our value proposition across all our ventures.

We are currently in the process of expanding our manufactured product portfolio to also include high weld strength wire mesh and Self Drilling Anchors for the infrastructure segment.

Our market entry strategy is marked by its flexibility. We often initiate our entry into a market by trading a product, enabling us to assess market demand and preferences effectively. For example, if local manufacturing is not immediately feasible, we may source products such as self-drilling anchors from overseas suppliers. Once we have established a firm foothold in the market, we evaluate the potential for local production.

We prioritise comprehensive testing and publish third-party certifications to showcase the quality and performance of our products. This approach allows us to minimise risks and make informed decisions about production and market entry.

At Runaya, we are embarking on two exciting new projects which are in the incubation phase. The first project centres around the production of technologically advanced gas-atomised metallurgical aluminium powders. These powders hold immense significance due to their use in solar panels, as reflective coatings, , solid rocket propellant for commercial satellite launches, and automotive applications for achieving metallic finishes on cars. We are finalising a technology partnership to bring this project to fruition, with plans to commence construction in January or February of the upcoming year.

The second project is dedicated to rare earth magnets, pivotal in electric vehicle motors. Notably, India currently needs a manufacturer for these crucial magnets. The local demand for magnets in India stands at approximately 3,000 tonnes, and we have ambitious plans to establish a production capacity of 1000 tonnes to cater to this demand. We are in the process of finalising a technology partner for this project as well.