Satish Kumar Agarwal is Chairman and Managing Director of Kamdhenu Group

23 Aug 2023 , 04:58 AM

Give us an overview of Kamdhenu Steel’s journey in the TMT bars industry and its growth over the years.

Kamdhenu Limited was founded in 1994 with a vision to provide best quality TMT bars in the market at an affordable price. Through our retail network, we have been successful in reaching out to the common people of our country and raise awareness regarding the importance of using best quality construction steel. From a single reinforcement steel bars manufacturing plant at Bhiwadi, Rajasthan, the company now has more than 80 manufacturing units operating under its unique franchisee model across the country.

The dealership and distributor network associated with Kamdhenu had also witnessed swift growth. There are around ~8500 exclusive dealers and distributors for our steel business.

How has Kamdhenu Steel adapted to the changing demands and advancements in the construction industry?

Kamdhenu operates on a franchisee-based model and possesses an in-house Innovation Centre that is dedicated to strong research and development practices. This allows us to develop and manufacture products that align with the specific requirements of our customers. To maintain consistent quality standards, we provide comprehensive training to our technical staff at our own production facilities before deputing them to franchisee units.

Additionally, we offer support for technical upgrades and the adoption of the latest technologies. Our innovative business model enables us to swiftly incorporate process improvements and transfer technologies as needed. Moreover, our decentralized manufacturing units contribute to cost-effectiveness by bringing us closer to our customers.

How does Kamdhenu Steel TMT Bars build and maintain strong relationships with its customers and partners in a highly competitive industry?

Kamdhenu proudly associates its consumers and partners as its Family. My Kamdhenu Family, is now of more than ~8500 members and shares a bond of loyalty, trust and mutual respect. In order to maintain and cherish our relationship, we frequently organize gatherings, meets and award ceremonies for our members. These events allow us to establish more personal connections with them, gaining deeper insights into their needs and nurturing stronger collaboration.

Kamdhenu Steel TMT Bars has a wide distribution network. Can you elaborate on how the company ensures timely delivery and availability of products across different regions?

Kamdhenu works on a unique franchisee based business model, which serve around 8500+ dealers and 250+ distributers. With this, we have eased the communication process of a distributer with a local manufacturer. Turnover time for manufacturing is way faster with these many diversified manufacturers. Lastly, with manufacturing units nearer to the End Customer, we also save a lot in Freight & Transportation Cost.

Could you provide insights into Kamdhenu Steel’s future plans and initiatives to gain market share and expand its market presence?

Kamdhenu has always been about offering ‘Best Quality at Best Price’ and brand positioning of our products has always been a top priority. Looking at the demand for our products, we are planning to expand our capacity from 40 lakh MT of TMT steel bars to 50 lakh MT of TMT steel bars by FY24 through franchisee route.

Our decentralized production model has already made a huge difference in the market. Not only do we offer high quality at affordable prices, we are also always prepared to take the next step in efficiency and technology adoption. We look forward to undertake strategic alliances and tie-ups of unorganized and medium sized manufacturing units. Our target is to achieve a total brand revenue of Rs 25,000 crore in the steel segment by the end of financial year 24.

How does Kamdhenu Steel engage with stakeholders, such as contractors, architects, and builders to meet their specific needs?

Kamdhenu is an ardent believer of creating awareness among the stakeholders and equipping them with relevant knowledge and skills. We ensure the right information regarding material quality, parameters, safety norms, application and precautions reaches them. We have been organizing various meets across the country since 2009, where we disseminate latest information regarding the construction sector to the people who are involved in construction and masonry work. These meets are organized in various states of India in a phased manner every month.

Give us a snapshot of the company’s financial scorecard.

We have delivered a strong performance in Q1 FY24. Our revenue has grown by 9% YoY to Rs. 209 crores and PAT by 20% YoY to Rs. 12 crores. Our total Brand Sales Turnover has increased by 15% YoY to ~Rs. 6,131 crores with franchisee volumes growing 12% YoY for the same quarter. The revenue from Royalty income has gone up by 16% to Rs. 32 crores for Q1 FY24.