A GLOBAL ACKNOWLEDGEMENT – ELECTROTHERM (INDIA) WINS THE CONSTRUCTION WORLD GLOBAL AWARDS
Continuing its winning streak, Electrotherm (India) Limited has won the Construction World Global award, 2019, as one of ‘India’s Top Challengers’. ET TMT received the award in a grand ceremony at New Delhi from Mr. Pratap Padode, founder and president of the Construction Council and Editor-in-Chief of the Construction World magazine.
Instituted by the Construction World magazine, the award is given to recognize companies that have grown both their top-line and bottom-line business processes and have maintained good financial health within defined debt limits. Companies were assessed on an exhaustive range of parameters such as net sales, PBDIT and net profit after tax.
This award is a proud achievement for ET TMT as an acknowledgment of its sound financial practices, where other awards have already credited the company for other aspects of its business. These include the “Ispat Agrodoot Award” for their “integrated iron-ore – induction furnace – LRF route of steelmaking”, the Frost and Sullivan Silver Award in the ‘Metal category’ at the India Manufacturing Excellence Awards (IMEA) 2019, and the ‘Gujarat Growth Ambassador Award’ from the government of India, in 2019, for being one of the growth drivers in the state of Gujarat.
CRITICAL INFRASTRUCTURE – THE SOLID FOUNDATION FOR LASTING PROGRESS
At Electrotherm (India) Limited, we believe that critical infrastructure is the backbone of a nation to assure the safety, health, welfare and economic progress of its citizens. As India is a fast-developing nation, building reliable critical infrastructure is our top priority. Networks of roads, dams, flyovers, bridges, water-ways and high-rise buildings are just a few of the structures that are a crucial foundational requirement to support the needs of our burgeoning economy. Thus, it is important that these are built right, not just with the right designs and planning, but also with the right materials.
TMT STEEL BARS – KEY TO BUILDING RIGHT
We know that TMT steel bars are one of the key materials that contribute to the reliability, strength, and longevity of critical infrastructure. Hence, to build right, using top quality TMT steel bars goes a long way in imparting strength and resilience to a structure.
ELECTROTHERM (INDIA) LIMITED – PIONEER – VISIONARY – LEADER.
Electrotherm (India) Limited was established in 1982. The company has a state-of-the-art fully integrated steel and pipe plant in Kutch, Gujarat. The plant has the world class technology and manufacturing methods including a blast furnace, sinter plant, induction melting furnace, ladle refining furnace, rolling mills and ductile pipe-making facilities. The company is the market leader in Gujarat for its TMT bars and is among the largest ductile iron pipe producers in the country. Today it supplies construction steel to 52 different countries around the world.
Besides engineering and steel, the company also has a presence in manufacturing electric vehicles, transformers, transmission line towers, and education. It achieved gross integrated sales of Rs 46.81 billion in FY18-19, registering a growth of 31.66 percent over the previous year. Over the past 35 years, the company has not only built highly technologically efficient and uniquely modeled businesses but it is also a proud owner of strong brands and products that have acquired the status of industry standards.
CONFIDENTLY TRAVERSING ROUGH PATHSz
The company increased its steel and TMT manufacturing capacity in the financial year 2017-18. However, the year 2018-19 showed a slowdown in steel demand and also registered a shift in demand from lower-quality grades like Fe500 to more critical grades like Fe500D and Fe550D. At that time the company did not have a strong presence in the infrastructure sector.
Electrotherm (India) Limited met this challenge head-on and initiated major sales and marketing efforts to successfully position itself in the infrastructure material supplies space. As a result, the company increased its TMT bars sale from 400,642 tonnes to 526,900 tonnes, a significant increase of 31.51 percent. This is a major achievement considering that the steel supplies market was facing a slowdown at this time.
FORESIGHT – CREATING OPPORTUNITY FROM SCARCITY
The company also foresaw major demand coming from critical infrastructure projects for products like epoxy-coated TMT bars, especially in the Mumbai region (coastal belt). There was no integrated producer in the country manufacturing these specially-coated bars. The company saw this as a big opportunity and in another of its series of pioneering moves it set up its own plant to manufacture epoxy coated TMT steel bars, with India’s first BIS certification.
The sale of ET epoxy coated TMT bars alone contributed to Rs 1.07 billion in FY18-19 and helped the company capture a completely new market where it did not have a presence earlier. In the process, the company contributed to strengthening and building this category and fuelling a robust demand for epoxy-coated bars in the country.
SUCCESSFULLY FACING CHALLENGES
Electrotherm (India) Limited has a simple philosophy – “Build it Right”. This has always helped it to create positive outcomes where initially there were hurdles. The steel market in FY18-19 was extremely volatile and prices were fluctuating widely. Following good business sense, the company resisted the usual practice of booking large quantities of raw material and selling large quantities of finished goods at one go. This ensured that the average realization of finished goods and the average cost of raw material balanced with each other and generated good margins for the company in a difficult market.
The company has established a strong presence for its TMT steel bars selling under the brand ET TMT bars, in the infrastructure space. It has registered increasing demand coming from this sector, where more and more roads, bridges, tunnels, ports, and airports are being built. The company expects this demand to continue unabated and hence plans to sell over 0.5 million tonnes of TMT, epoxy-coated and C&B bars during the year, all produced using state-of-the-art integrated induction-Ladle refining furnace (LRF) technology to achieve a sizeable growth in the TMT steel bar market.
Electrotherm (India) Limited has received glowing acknowledgment for its hard-earned success and sound business. Not one to rest on its laurels, the company shall continue its efforts to build for the future.