Sunil Agarwal, Director of Kamdhenu Group in an interview with B2B Purchase.

How are the present market trends for steel impacting the TMT bars manufacturing in India?

Steel prices are hardening due to the combination of constant price rise for iron ore, and the impacts of COVID-19 and other factors. Whiles these high prices are unsustainable in the long run, we are witnessing a healthy rise in the demand for TMT bars as per the reopening of the economy, and due to latent demand. Also there is a strong focus on infrastructure development to power the next phase of development in the country and this is a huge positive development for the TMT bars manufacturing sector in the country.

With the steep increase in urbanisation, how do you view the demand for quality TMT bars in the construction and infrastructure segment in India?

The increase in urbanisation has led to amplified demand for additional infrastructure to support and sustain society. Urban centres are also marked by an increase in spending power, this manifested in the demand for grand designs and spectacular constructions along with international standards. All these results in an increasing demand for high-quality TMT bars that can support modern infrastructure and construction trends, and relevant norms.

How the pricing and demand trends are impacting the quality of efficiency and productivity of TMT bars?

While pricing and demand are closely related and are linked closely to market conditions, the efficiency and productivity of TMT bars are more a product of the quality of input materials such as iron ore. The price of iron-ore has a direct bearing on the price of TMT bars as manufacturers pass on an increase in input cost to the end customers. Any disruption in the supply chain or an unforeseen rise in demand can cause a demand-supply scenario where there is a shortage in availability and hence pressure on pricing.

Which significant challenges are being faced by the TMT bar manufacturers, especially in terms of price, technology & innovation?

TMT bar manufacturers are often faced with challenges such as access to capital. TMT manufacturing is a cash-intensive process requiring significantly large investments and access to required credit is often at high cost which pose a challenge to the expansion plans of manufacturers. Also, the demand for TMT bars fluctuate in a cyclical pattern and the risk of bankruptcy is high in the event of a downturn.

How do you evaluate the need for investments in R&D in TMT bars, for the construction and infrastructure segment?

The design, use case and construction methods evolve over time to change aesthetics and requirements according to the times. With safety criteria becoming ever more stringent, intricate designs and size of construction evolving there is a need to invest in research and development of TMT bars so that they not only satisfy current safety, construction and design requirements but are future-ready and can support changes in design or construction patterns.

How is your company contributing to delivering high-quality products in the market amid the pandemic? What are your future endeavours for the construction and infrastructure sector?

The safety and security of our employees and staffs is paramount to us and we followed all government advisories and restrictions during the pandemic. Following government-mandated guidelines we have downed shutters in our plants and no manufacturing or distributing was possible during the lockdown. With the easing of restrictions and issuance of safety guidelines to be followed, we restarted operations as per the protocols that are being revised from time to time.