About Us
Poised to capture growth in the TMT Bar market
We are engaged in manufacturing of Thermo Mechanically Treated Bars (“TMT Bars”) at our manufacturing facility situated at Bhayla Village, Ahmedabad, Gujarat, India. TMT Bars are high-strength reinforcement steel used widely in construction due to their exceptional strength, ductility, and corrosion resistance. (Dun & Bradstreet Report). We conduct our business predominantly in the State of Gujarat from where we derived over 98% of our revenues from operations in Fiscal 2024. Our revenue from operations in Fiscal 2024 from sale of TMT Bars in the State of Gujarat constituted approximately 94% of the total revenue from operations wherein retail sales constituted 80% and institutional sales constituted 14% of the total revenue from operations.
Our revenue from operations also includes sale of scrap, binding wires and billets which constitutes approximately 6% of the total revenue from operations in Fiscal 2024. We have a diverse customer base of retail and institutional customers primarily based in the State of Gujarat. We have a retail licence agreement dated November 7, 2022, with Kamdhenu Limited which allows us to market our TMT Bars under the brand ‘Kamdhenu NXT’ on mutually agreed terms within the State of Gujarat on a non-exclusive basis. We sell our TMT Bars to customers through distribution network, on a non-exclusive basis, which comprise of 3 distributors and 227 dealers as of August 31, 2024.
The table below sets forth the consumption and production of TMT bars in India for the dates indicated.
According to Dun & Bradstreet Report, domestic demand for TMT Bars is anticipated to rise significantly, driven by the government’s focused efforts on enhancing the India’s infrastructure. The construction industry’s growth in India is on an upward trajectory, increasingly favouring TMT Bars due their superior qualities: exceptional strength, durability and ability to withstand seismic activities, making them indispensable in the modern construction. As the government continues to prioritize the development of quality and sustainable infrastructure, TMT Bars are set to play a crucial role.
Our Promoters
Our Company is led by our Promoters: Manoj Kumar Jain, Varun Jain, Sangeeta Manoj kumar Jain, and Rishabh Singhi. They have significant hands-on experience in the steel industry. They are backed by a skilled management team and a dedicated workforce, including both permanent and contract employees, as of March 31, 2024. Further, certain family members of our Individual Promoters are actively involved in managing the day-to-day affairs of our Company.
Manojkumar Jain, aged about 62 (sixty-two) years is the Promoter and Non-Executive Director of our Company. He has been associated with our Company since May 25, 2014. He is a commerce graduate from Kanpur University and a qualified Chartered Accountant. He has 22 (twenty-two) years of experience in diverse sectors like ship breaking and recycling, TMT bar manufacturing, offshore activities, automobiles and finance. Presently, he is also a director in VMS Industries Limited, Luxierge Media Private Limited and VMS Autolink Private Limited. He is also a partner in Entrepot B Developers, Yohaan Enterprises and Eternal Automobiles.
Varun Manojkumar Jain, aged about 35 (thirty-five) years is the Promoter, Chairman and Managing Director of our Company. He holds the directorship in our Company since April 1, 2022. He holds degree in Bachelor of Commerce from Gujarat University and has done Management Programme for family business from Indian School of Business (ISB), Hyderabad. He has also passed the Professional Competence Course from ICAI. He has more than 8 (Eight) years of experience in the steel sector. Presently, he is also a Director in Aditya Ultra Steel Limited, one of our Group Companies and is also a partner in Yohaan Enterprises and Entrepot B Developers.
Sangeeta Jain is a promoter of our Company. She has cleared the examination of Master’s in arts from C.S.J.M. University, Kanpur. She has more than 30 (thirty) years of experience in administration. In the past she has held the position of Director of our Company and resigned on April 2, 2022. Presently, she is a director at VMS Industries Limited and VMS Autolink Private Limited. She is also a partner in Entrepot Developers Yohaan Enterprises and Eternal Automobiles.
Rishabh Sunil Singhi, aged about 26 (twenty-six) years is the Promoter and Whole-time Director of our Company. He has been associated with our Company since October 9, 2021. He holds a degree in Bachelor of Technology in Civil Engineering from Pandit Deendayal Energy University. He has more than 2 (two) years of experience in the steel sector.
Manojkumar Jain, aged about 62 (sixty-two) years is the Promoter and Non-Executive Director of our Company. He has been associated with our Company since May 25, 2014. He is a commerce graduate from Kanpur University and a qualified Chartered Accountant. He has 22 (twenty-two) years of experience in diverse sectors like ship breaking and recycling, TMT bar manufacturing, offshore activities, automobiles and finance. Presently, he is also a director in VMS Industries Limited, Luxierge Media Private Limited and VMS Autolink Private Limited. He is also a partner in Entrepot B Developers, Yohaan Enterprises and Eternal Automobiles.
Varun Manojkumar Jain, aged about 35 (thirty-five) years is the Promoter, Chairman and Managing Director of our Company. He holds the directorship in our Company since April 1, 2022. He holds degree in Bachelor of Commerce from Gujarat University and has done Management Programme for family business from Indian School of Business (ISB), Hyderabad. He has also passed the Professional Competence Course from ICAI. He has more than 8 (Eight) years of experience in the steel sector. Presently, he is also a Director in Aditya Ultra Steel Limited, one of our Group Companies and is also a partner in Yohaan Enterprises and Entrepot B Developers.
Sangeeta Jain is a promoter of our Company. She has cleared the examination of Master’s in arts from C.S.J.M. University, Kanpur. She has more than 30 (thirty) years of experience in administration. In the past she has held the position of Director of our Company and resigned on April 2, 2022. Presently, she is a director at VMS Industries Limited and VMS Autolink Private Limited. She is also a partner in Entrepot Developers Yohaan Enterprises and Eternal Automobiles.
Rishabh Sunil Singhi, aged about 26 (twenty-six) years is the Promoter and Whole-time Director of our Company. He has been associated with our Company since October 9, 2021. He holds a degree in Bachelor of Technology in Civil Engineering from Pandit Deendayal Energy University. He has more than 2 (two) years of experience in the steel sector.
Our Process
Marketing and Brand
Customer Base
Distribution
Manufacturing Capacity
Integration
Raw Material
Logistics
Manufacturing & Logistics Insights
We manufacture our TMT Bars at our facility in Bhayla Village near Ahmedabad, Gujarat, India. In July 2024, we are diversifying our production to include pipes manufactured from stainless steel at a leased factory in Bhavnagar, Gujarat, which we intend to market under the name “Kamdhenu” under license.
(1) Calendar of commissioning of the unit.
(2) Permanent employees as of August 31, 2024.
(3) Located at our manufacturing facility in Bhayla Village near Ahmedabad.
(4) Pipe facility is being commissioned at a leased factory in Bhavnagar, Gujarat.
Key Features of Our TMT Bars Plant Include:
- Coal Oxy automation to maintain proper flow of oxygen for optimum consumption of coal.
- Oil lubrication system at plant eliminating use of grease for better life cycle and lower breakdown.
- Automatic flying shearing, automatic bundling machine, bending machine, and cooling bed with layer shifting for better handling.
- Use of tensile metal rolls for better shine, perfect size, and higher roll life.
- The entire mill is automated and synchronized via a unified control panel using a Programmable Logic Controller (PLC), ensuring efficient and consistent production.
In accordance with our backward integration project, we will manufacture billets for our TMT Bar production. We have installed a thirty-ton induction furnace with installed capacity of 216,000 MT per annum and have also installed power substation having 22,000 kVAh. The production of billets will be for our own captive consumption to manufacture TMT Bars.
Our major raw materials for our manufacturing processes are mild steel scrap, sponge iron and coal. Prior to our backward integration project, our primary raw material for our TMT Bars was iron billets, which we primarily sourced locally in Gujarat.
Our business is significantly dependent on our supply chain management. We have strong supply chain relationships in Gujarat and certain other states. In Fiscal 2024, 63.89% of our raw material purchases were from suppliers in Gujarat. Purchase of raw materials locally saves us in transportation costs and time of delivery.
We use fleet of over 50 trucks provided by a third party transportation and logistics provider for delivery of our products to our customers. We believe that doorstep delivery to our retail and institutional customers entitle us to have a strategic advantage over our competitors.
Our Financial Performance Journey
We believe that our integrated production facility, focus on maintaining high capacity utilization, operational efficiency, productivity and low operating costs are the inherent strengths of our Company, which helps us to effectively manage the cyclical trends of the TMT Bars sector. We have a consistent track record of delivering operating profitability.
Summary of our financial performance are as follows:
The debt-to-equity ratio and debt-to-EBITDA ratios of our Company as of Fiscal Year 2024 was 4.25 times and 4.77 times respectively and which have improved from 5.28 times and 7.39 times in Fiscal 2023 respectively. Our total borrowings for August 31, 2024, largely comprises of borrowings of ₹ 25,251.83 lakhs, unsecured borrowings of ₹ 8,797.82 lakhs and secured borrowings of ₹ 16,454.01 lakhs.
Our focus on operations have helped us achieve a track record of healthy financial performance. Our total income has grown at a CAGR of 32.98 % from ₹ 49,374.63 lakhs in Fiscal 2022 to ₹ 87,316.86 lakhs in Fiscal 2024. Our EBITDA has grown at a CAGR of 60.29 % from ₹ 1603.60 lakhs in Fiscal 2022 to ₹ 4120.29 lakhs in Fiscal 2024. Our profit after tax has grown at a CAGR of 39.92% from ₹ 687.95 lakhs in Fiscal 2022 to ₹ 1,346.84 lakhs in Fiscal 2024.
For the Fiscal 2024, Fiscal 2023 and Fiscal 2022, we have achieved a profit margin of 1.54%, 0.48 % and 1.39%, respectively. This is attributable to our continued focus on product quality and production process improvement, competitive pricing and cost rationalization. Our strong financial performance reflects the efficacy of the manufacturing and management protocols that we have implemented and strong working capital management across our business while our steady operating cash flows enable us to meet the present and future needs of our customers.
We have a history of high customer retention. As of March 31, 2024, we enjoyed relationships in excess of three years with five of our top 10 customers. Our long-term relationships and ongoing active engagements with customers also allow us to enhance our ability to benefit from increasing economies of scale with stronger purchasing power for raw materials and a lower cost base.
We market and sell our TMT Bars in Gujarat under the brand ‘Kamdhenu NXT’. We also sell scrap, mill scale and binding wires in Gujarat and other states. We sell our TMT Bars to retail and institutional customers through distribution network, on a non-exclusive basis, comprising of 3 distributors and 227 dealers as of August 31, 2024. Our focus for sales has been on Tier II and Tier III cities. We have divided the State of Gujarat into three zones with one distributor in each zone.