Shyam Metalics shares its expansion into the stainless steel long products segment following the acquisition of Metal Core in 2022. With integrated operations and a focus on special electrode grades, the company aims to meet rising demand despite pricing pressures in the market.
Mubina Kapasi: We’ve all known Shyam Metalics to be primarily in the business of manufacturing ferro alloys. But here and today on SmallCap Spotlight, we’ll be talking about their more newly acquired business, that of stainless steel. And for that, I have with me Mr. Pradeep Kumar Marisetty.
He’s the Senior GM and Export Head for the Stainless Steel Long Products Division of Shyam Metalics. Thank you so much, sir, for joining us today. To begin with, I think let’s give all of our viewers an overview of Shyam Metalics.
Pradeep Kumar Marisetty: We have acquired in 2022, we have bought metal core and when we bought, they have a wire rod black only. Now we have added like forward integration. We have added products like wire, round bar and TMT rebar.
Mubina Kapasi: You know, are there any synergies in terms of assets or perhaps in terms of raw materials between your traditional ferro alloys business and the stainless steel business?
Pradeep Kumar Marisetty: Yeah, Shyam Metalics is into ferro alloys. So that’s an added advantage for us. We are using our own ferro alloys for melting.
Mubina Kapasi: So do you get a cost advantage as well because of that?
Pradeep Kumar Marisetty: Yeah, of course, it reduces our cost because all the ores are owned by us.
Mubina Kapasi: What is the strategy now to break into the stainless steel market for you?
Pradeep Kumar Marisetty: See for Shyam Metalics, our USP is we have a wide range variety of grades. Mainly, we are into electrode grades and all special grades.
Currently, we are concentrating on electrode grades only for exports, which makes us unique in the market. Everyone is making 304, 316 or even we do make that. But still, we are more into special grades.
Like we are making duplex now. We are making a lot of electrode grades like 308, LAWS, 307SI, 310, 309. All these grades we are making here.
Currently, we are melting around 800 to 900 tons per month special grade. That is a quite big amount in this market.
Mubina Kapasi: Could you tell us a bit about the applications and who the end user industries are for the products you are manufacturing?
Pradeep Kumar Marisetty: See, we have four products we are currently manufacturing here.
One is stainless steel wire rod. Stainless steel wire rod main user is wire manufacturer, round bar manufacturer, fastener manufacturer. These are the main major users of the market for this product.
If it comes to wire, wire majorly goes to kitchen application, fastener application, and there are even mesh. We have a number of applications for stainless steel wiring.
Mubina Kapasi: I understand that you also have backward integration when it comes to your product and the manufacturing process.
Pradeep Kumar Marisetty: Yes, yes we do. You know, we have our own made shop. We are using our own ferro alloys. So, it is an integrated mill. Everything is in-house.
Mubina Kapasi: Do you have any plans for capacity expansion?
Pradeep Kumar Marisetty: Within two years down the line, we are coming up with slag product also.
Like currently, we are into long products. We are coming up with HRAP, sheet coils also, sheets, sheet coil and CR also.
Mubina Kapasi: Could you give us a sense of what demand is looking like for the product right now, for the industry right now?
Pradeep Kumar Marisetty: We have, still we have a very good demand locally and abroad. But the main challenges are, you know, competition which we are facing is prices. Everyone is looking for cheaper prices, but which makes, you know, manufacturer to get into survival mode.
Mubina Kapasi: All right, thank you so much Mr. Marisetty for joining us today and thank you viewers for tuning in.
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