The Story Of The Steel Giant

Bajrang Alloys has grown from a 50,000 tonnes per annum rolling mill to two million tonnes of pellet-making plant in a decade. We speak to Sandeep Goel of Shri Bajrang Alloys on the company’s future expansion plans and projects.

BW: How has your entrepreneurial journey been so far?
I have encountered many challenges and opportunities in my family-run business, and it has been a great learning experience. In about a decade, Bajrang Alloys has grown from 50,000 tonnes per annum rolling mill to two million tonnes of pellet-making plant. Since 1990, Shri Bajrang Alloys has targeted to make structural steel for industrial fabrication and transmission line towers. From 100 to 300 tonnes per day in just two years, Shri Bajrang Power and Ispat Ltd today have a turnover of about Rs 2,000 crore. The recent achievements are: Shri Bajrang Power and Ispat have been categorised as the main producer of steel by the government of India, which is on par with SAIL, Tata and other steel giants. We also commissioned a hydro power plant in Himachal Pradesh, with an installed capacity of 40 MW.

BW: What are some of your key focus areas for 2017?
In 2017, we plan to have value-added products in finished steel and technology to curtail the cost of production and remain competitive with global manufacturers. Specifically, we will start working on a second hydro power plant with a capacity of 35 MW in Himachal Pradesh.

BW: What are some of the challenges and innovations you expect in 2017?
In terms of challenges, the presence of global organisations could enhance the competition for local and Indian manufacturers. Post-demonetisation, we also are witnessing a relatively slower demand year over year. We, as an organization, are continuously evolving and adapting to newer and better technology to make our products better and bring economies into our cost of production. Identification and research on newer technologies to lower the power cost also adds to the profitability and sustainability in the long run.

BW: In the past few years, we have seen growth coming from the market of tier-2 cities. What are your thoughts on this growth?
The tier-2 cities contribute heavily to the growth of our country. There is availability of skilled manpower, better connectivity for raw material and finished goods. With an additional thrust provided by the ‘Make in India’ campaign, I see an unprecedented enthusiasm to create products that can be consumed at the local level, as well as on the national scale. We also see a reverse migration to tier-2 cities with better living standards, as well as easy access to homes for the middle and lower classes through interest rebates being provided by the central and state government.

BW: With many small towns developing at a fast pace in India, the franchising model is bound to succeed. What are you views here?
For those who have limited resources at hand, franchising becomes an exciting option. The franchisee borrows a lot of technical know-how and years of research from the franchisor to help him or her hit the ground running faster. When we talk of the manufacturing sector, it also automatically becomes a much more cost-effective way to enter the sector. However, we believe that there is an equal or more sincere responsibility for the franchisor or the manufacturer. It is important to identify the right franchisee who aligns not only with the financial goals of the franchisor, but is also in sync with the mission of the organisation. This would go a long way in creating sustained business partnerships for meaningful growth for both stakeholders. It also gives the flexibility to the franchisor for being a little more experimental and to do a quick consumer ‘dipstick’ in areas/geographies where they might have otherwise taken a little longer to penetrate into.

BW: In your experience, what are some of the best lessons learned for young entrepreneurs?
An entrepreneur is probably the most important factor of production in modern-day economics. His contributions and roles have taken dominance over the other three factors of production, primarily because of the intelligence and responsiveness they bring into the market requirements and products. As a responsible member of the Entrepreneurs’ Organization (EO), I get to hear from hundreds of first-generation entrepreneurs at various stages of their product life cycle. I would encourage the firs-generation entrepreneurs to focus specifically on identifying the right co-founders and early team members. My analysis forces me to say that almost 80% of the companies, ideas and products that fail in the early days are mainly dominated by team fallout and differences.

BW: The Entrepreneurs’ Organization enables entrepreneurs to learn and grow from each other, leading to greater business success and an enriched personal life. How has EO helped in your transformation?
In 2011, after joining EO, I met accomplished businessmen with crazy ideas and broad outlooks. I loved the extensive networking opportunities afforded me through my sessions with likeminded peers. EO provides a symbiotic relationship platform. Having served in member leadership, I was able to meet people with such outside-of-the-box ideas, while learning more about their implementation process, and thereby caught a zest for living life adventurously. The thirst to seek the unknown with teammates is one of the many beautiful takeaways provided through the EO journey. Summing up my EO experiences to date, I’d like to quote Robert Frost: ‘I have promises to keep, and miles to go before I sleep.’

Sandeep Goel of Shri Bajrang Alloys, one of the largest structural rolling mills in Chhattisgarh spread over 33 acres of land, has served as the founding president of EO’s Raipur Chapter from 2011-2012. Goel’s unwavering vision and leadership has been instrumental in transforming his enterprise into a business behemoth in central India.