Rajputana Stainless Ltd. charts its journey from a one-ton furnace to a 60,000-ton annual capacity, with CEO Yash Mehta outlining expansion into new segments and global markets. With an IPO on the horizon, the company aims to diversify into seamless pipes, double production, and tap into industries like aerospace and nuclear.
Mubina Kapasi: Hello everyone, today we’ll be talking to the management of Rajputana Stainless Limited, a company that manufactures stainless ingots, billets, etc. that have a variety of applications. I have with me Yash Mehta, who is the CEO of Rajputana Stainless.
Hi Mr. Mehta, let’s start off first by telling us a bit about the beginning of the company, its inception, how did it all begin and where along the journey of the company did you join in, in what capacity?
Yash Mehta: Rajputana Stainless began its journey in 1991. It’s a 34-year-old company now and it started its commercial production in 1993 with casting ingots and then it pivoted, you know, into manufacturing of stainless steel. So, it’s been a journey for the company and from a one ton induction furnace to a 60,000 ton melting facility in an entire year is the journey that Rajputana has lived and many more years and we, you know, see our production going up from say 60,000 to a lakh ton.
I joined the company in 2016 and during that time we were manufacturing roughly around 30,000 tons of stainless steel into different grades. So, my focus was to increase the production and increase our base from just one place to, you know, many more places. Also, to increase our production facility in different segments.
So, we, you know, introduced different grades in our company and that’s how, you know, we’ve tried to make our business model in which we cater to, you know, different categories like, you know, servicing the pipe segment, servicing the tube segment, servicing the forging industry along with say, you know, the industries that are traditional like the utensil industry and, you know, exporting the bars to, you know, other manufacturers.
Mubina Kapasi: Give us a sense of how much do you sell in India and how much comes from exports?
Yash Mehta: So, Rajputana started its exports in 2013. Till 2017, Rajputana was exporting but then there came a phase wherein we decided to focus more on the domestic requirements because we had some contracts in which, you know, our focus shifted majorly to the domestic clients and then again back in 2022, we started exporting.
Now, we are exporting to four different continents already and we are gradually picking up and increasing our volumes to, you know, to try and try to cater to different countries now.
Mubina Kapasi: You know, so considering that you have this focus on exports, what do you make of the whole Trump tariff tantrum that’s been doing the rounds for some time and do you think that is going to impact business for you?
Yash Mehta: So, basically, it’s been a rocky journey since the last past three months wherein some tariffs have come and some tariffs have gone. So, we’re really unsure about it but I think it’s going to be three to four months down the line wherein we’ll be able to really figure out what exactly is happening.
So, we’re just waiting and, you know, watching as to how this entire journey of, you know, the tariffs coming in and coming going out goes on and at what rate it stabilizes. So, we’re just waiting as of now. That’s about it.
Mubina Kapasi: Let’s talk a little bit about supply, you know, because you’re dependent on certain raw materials which are commodities and the pricing tends to fluctuate a lot. So, how do you deal with the vagaries associated with that?
Yash Mehta: So, basically, our procurement is majorly scraps and ferroalloys. So, there is massive jump in prices when it comes to ferroalloys and scraps.
So, for that, we need to be constantly updated as to what exactly is happening in the market and we need to ensure that the procurement that is done is done from the right places as well. So, it’s a little challenging but now since we’re there in the system, since the last past 30 years, it’s become gradually, it’s become pretty much simpler and we’ve got our own vendors that are set. So, it’s not that difficult even in scenarios like wherein we’re facing global issues everywhere.
Supply chain is something that we are pretty much settled with and it’s not been a very big hassle for us.
Mubina Kapasi: How do you look at competition? Because at the end of the day, it is a commodity product and the industry that you are in, it has other players as well. So, how do you assess the competition and how do you try to stand out?
Yash Mehta: So, it’s termed as a commodity product by the general public but it is a very specialized commodity is what I would term it as because it’s not very easy to manufacture, not very easy to understand and you really need to have the knowledge about it to ensure that you cater your customer in the right direction.
It’s every product, every bar that is manufactured is manufactured with different kind of expertise and different kind of customer requirement. So, it all varies from a customer to what exactly is this process that is going to be done on the product.
Mubina Kapasi: So, can you tell us a bit about your customers and basically are you also customizing products for every customer?
Yash Mehta: So, basically our main customer base would be the forging segment which is the engineering segment and pipes and tube segment.
These two segments, we cater them the most. It’s very much customized for each and every customer because the products that are manufactured are also manufactured in customized manner and the entire order book that is there for the company is entirely a make-to-order book for which every customer requires the different kind of sizes, different kinds of shapes, different kinds of lengths. So, it is a very customized product customized to a particular customer’s machinery as well.
Mubina Kapasi: Because you also have an IPO coming up, so if you could tell us a bit about that. What’s the purpose of the IPO? Why now?
Yash Mehta: So, the IPO is something that we were thinking of since the last 5, 6 to 7 years and finally we’ve decided to come up with it. We want to go one step further to add to our product list and we directly want to reach the consumers now.
So, we are planning to get into the seamless pipe market which is our major focus when it comes to the IPO proceeds. Secondly, we also want to reduce our debt a little and third is we want to ensure that if there are any opportunities coming in the stainless steel market, we are ready and we can pounce on it. So, that is the main three things for which we think that IPO is a logical step for our company.
Mubina Kapasi: So, once this new capacity is added, what will it take your total production capacity to, if you could tell us a bit about that, when the plant will eventually be commissioned?
Yash Mehta: So, our production, say our raw material production would remain the same. However, our product portfolio would become much wider and our turnovers would say increase by 25 to 30%.
Mubina Kapasi: So, considering that it’s a specialized product, will it also be margin accretive then?
Yash Mehta: So, since it’s a specialized product and since we’re directly reaching out to the consumers, we will attain larger profits and which again has been the motive to get our company a little into the segments which are focused more towards the consumers.
Mubina Kapasi: What’s the goal that you have in mind for the next 5 to 7 years for the company? Let’s say we were to speak then, how different do you think Rajputana would look?
Yash Mehta: So, basically the plan for the next 5 to 7 years realistically is to ensure that we reach as many consumers as possible via different products, maybe increase our production to at least double our production and double our product portfolio through which we could reach to the end consumers, enter into the industries like aerospace and nuclear, which is very much in demand as well and very much our company’s key focus as well.
Mubina Kapasi: We’d love to get an on-ground sense of you, when it comes to the day-to-day operations, especially in your manufacturing unit, what are the challenges you tend to face?
Yash Mehta: It’s a very challenging job as well. It requires constant monitoring and constant attention because a little bit here and there would mean that there is a lapse.
So, you need constant attention. Also, the entire team needs to be constantly motivated to do the same thing day in, day out. So, to ensure that you personally are motivated, the entire company is motivated to do it and to mitigate all the challenges that come day in, day out, you need to have that mettle as well and the strength in you as well to ensure that you take each challenge as it comes by.
Mubina Kapasi: And finally, if you could tell us who is there in your top team, in your top management, who is working collaboratively and collectively to help you and the upper management fulfill that broad vision for Rajputana?
Yash Mehta: So, I am the CEO of the company and my father, he is the managing director. Then we’ve got Mr. Mohit Pitwa, who is the director in the company. We’ve got Mr. Jayesh Pitwa, who is also the director.
Mr. Amrish Bedade, who is the CFO of the company. And there are 400 more people who collectively and collaboratively lead the entire organization to what it is now.
Mubina Kapasi: All right, Mr. Mehta, all the very best for the future plans and for the IPO as well.
Thank you so much for joining us today. That was Rajputana Stainless Limited. Big plans for the future and an IPO coming up as well.
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