Ajay Kumar Kanoi highlighted MSafe Equipments’ integrated model of manufacturing, sales and rentals as a key differentiator in the scaffolding industry. He noted that the company operates 18 warehouses across India and is expanding its footprint to support growing infrastructure demand while maintaining a strong focus on safety.
Anjali Palod: Hello and welcome, you’re watching Small Cap Spotlight and today on this episode, we are joined by Ajay Kumar Kanoi, who is the whole-time director at MSafe Equipments. Welcome Mr. Kanoi to SmallCap Spotlight. Thank you so much for having this conversation with us.
But we want to start by talking about what MSafe Equipment does, what is the core business model for the company, how do you make money?
Ajay Kumar Kanoi: Ma’am, MSafe Equipment Limited is a scaffolding company. We manufacture aluminium scaffolding, steel scaffolding, aluminium and FRP ladders. We manufacture this and we have 18 different warehouses all over India.
We have a company-owned distribution model. From these warehouses, we sell and rent both.
Anjali Palod: And can you take us through the journey of the company? When was it started? Who was it started by?
Ajay Kumar Kanoi: This company is promoted by Mr. Pradeep Agarwal and myself, Ajay Kanoi. We started this company in the end of 2019 and last year we closed at around 72 crores and this year 100 crore plus will be closing.
Anjali Palod: And give us a sense of both of your backgrounds. What have you done before MSafe and what led you to starting this company?
Ajay Kumar Kanoi: I have a business experience of nearly 20-25 years
After that, for some corporate experience, I worked in a domestic company for 8 years. After that, in 2019, I decided to quit that company and start my own business. Similar profile but Pradeep Agarwal has been working in big MNCs throughout his career and he also was working in the same company.
We decided to quit and start our own venture.
Anjali Palod: And give us a sense of the industry right now. There are a bunch of other companies like yours that are in this space. What gives you a competitive edge?
Ajay Kumar Kanoi: The scaffolding industry is more or less an unorganised industry. We are one of the only players who is doing steel scaffolding, aluminium scaffolding, sales, manufacturing, rentals. That has been an edge to us.
Being a one-stop solution for our customers with utmost safety. We don’t compromise on safety. Safety is the first priority to offer.
Anjali Palod: Yeah, but in terms of growth drivers, you said that 2019 you started, you’ve already listed, you closed the last year at 72 crores. So what is it that is driving the growth for scaffolding?
Ajay Kumar Kanoi: The year-on-year, the infrastructure growth is one of the main factors and we had a vision of creating the infrastructure first. Every year, we have been adding three or four new warehouses in new locations so that the customer does not have to pay more on the delivery charges and we can give faster delivery.
Anjali Palod: Right. So you’ve talked about expanding your footprint across the country. So give us a sense of where all you currently serve and where do you want to take it?
Ajay Kumar Kanoi: We have about 18 warehouses currently.
Currently, we are present nearly every 500 kilometres and our target is to be present in every 250 kilometres. So every year, we’ll keep adding a few more warehouses.
Anjali Palod: Right. Sort of doubling your current footprint.
Ajay Kumar Kanoi: We have recently introduced our steel scaffolding division. In that also, we are planning to introduce ring lock scaffolding. We are planning to introduce H-frame scaffolding. We are going into aluminium formwork and other products also. But you know scaffolding earlier, it used to be other materials.
Now we have aluminium and things are getting more sophisticated. There are scaffolding assets is a very vast field. Right.
One by one, we are trying to penetrate into all types of scaffolding so that our customer gets a solution at one place at a reasonable price and with an organised player.
Anjali Palod: Right. But what about the competition that you might be facing from, let’s say, you know, more modern solutions for reaching at height? Is that proving to be difficult now?
Ajay Kumar Kanoi: It’s not like that.
Every of the product has its own application. The convention scaffolding has its own application. The slowly India is developing and safety is getting its importance.
So the usage of aluminium scaffolding has gone up multiple fold and we have bridged the gap of that requirement. And that’s the main reason for our success story. Right.
Anjali Palod: And give us a sense of what you are trying to achieve. Let’s see in the next five years, what are the big milestones that you have in mind?
Ajay Kumar Kanoi: In near future, we will be increasing our top line multifold like the steel scaffolding is a commodity product. We want to be present in every tier two, tier three city in India.
Anjali Palod: Right. And any new products that you will be launching, any new areas you will be?
Ajay Kumar Kanoi: I told you like we are planning to launch a steel scaffolding and my one scaffolding very soon.
Anjali Okay, understood. Thank you so much, Mr. Kanhoi for having this conversation with Small Cap Spotlight. It was a pleasure having you and understanding MSafe equipment as a business. I just like to also mention that last month, our company has gone limited and we are now listed in BFT.
Anjali Palod: Right. All right. That was Mr. Kanoi for Small Cap Spotlight.
Thank you so much for watching. Do like, share and subscribe.