New Delhi, Apr 8 (PTI) Leading TMT bar maker Kamdhenu Ltd along with franchisees is expecting a 29 per cent jump in output at 22 lakh tonnes this fiscal in view of rising demand, a top company official has said.
Kamdhenu ventured into franchisee business model to involve more and more regional steel units of the country by encouraging their participation and support in technology transfer and upgradation of their facilities for better productivity levels.
The company also aims to increase its market share in the retail TMT segment to 25 per cent from the existing 20 per cent.
“The way infrastructure is growing, highways are constructed, bridges and buildings are coming…the demand for TMT will shoot up in the country. It will open up opportunities for everyone related to the sector, be it a raw material seller or a buyer of finished products,” Kamdhenu Chairman and Managing Director Satish Agarwal said.
“In FY 2017-18, our capacity was 17 lakh tonnes. Since the demand is rising, we have raised production target for FY 2018-19 to 22 lakh tonnes…,” he said.
Government schemes like Housing for All by 2022, Pradhan Mantri Awas Yojana, among others are expected to create an additional demand of 100-150 MT TMT bar, and Kamdhenu is looking to grab this opportunity, he said.
On whether the TMT makers will also raise prices in view of rising demand, he said, “Kamdhenu has always sold its TMT at genuine rates.” Agarwal, who has over 40 years of experience in the steel sector, also cautioned the buyers against buying low-grade TMT bar.
Agarwal said there are low-grade TMT bars available in the market which is a serious concern and requested the builders to do a quality-check before going for bulk buying.
He also invited them to send in their TMT bars to Kamdhenus R&D centre at Bhiwadi for testing whether the material is corrosion-free and contains low sulphur.
Set up in 1995, Kamdhenu Ltd has become a leading brand in TMT bars. It has 76 manufacturing units and a distribution network of 6,500 dealers, which the company is looking to increase by 50 per cent with the doubling of production capacity.
This is published unedited from the PTI feed.