Strong distributor-manufacturer partnership for increased per capita steel consumption, says CEO of Shah Brothers Sanjiv Mehta

When it comes to infrastructure, steel has a definite grip. From traditional sectors like high rise buildings to hi-tech engineering projects like power generation, metro, petrochemicals— steel is always in great demand. Rising urbanization has facilitated the infrastructure development, which in turn, has led to the increased use of steel in all the upcoming infrastructure projects, owing to its stability, wind resistance, etc.

That said, the current numbers don’t  justify the expected consumption as India’s apparent steel use per capita for finished steel products stood at 66.2 kg, way below than the world average of 212.3 kg in 2017. The per capita steel consumption reflects the economic development of the nation, thus, this limited consumption is indicative of huge demand-supply gap in India.

“India may have catapulted to second spot behind China in global steel production but its per capita consumption is quite less. Factors behind such numbers include stagnant demand coupled with liquidity crisis and untimely policy, as they have invariably weakened the steel consumption,” says Sanjiv Mehta, CEO of Shah Brothers Ispat, who is also the vice-president of Steel Users Federation of India (SUFI).

Thus, strong steel distribution partners of manufacturers are a must to achieve increased per capita steel consumption, he added.

Priming the market with good steel distribution network, Sanjiv Mehta’s Shah Brothers Ispat, which entered the market in the year 1958, has been working extensively towards ensuring good steel supply in the domestic market. From Boiler Quality plates to high tensile plates, to Stainless steel plates, the company has been complementing multiple infrastructure projects in India.

For India to become the next manufacturing hub, it needs to be able to tap into its unexplored resources. Additionally, there is a need for a big distribution network that can complement the further development of sectors along with the industrial and freight corridors.

Owing to good travel experiences and internet exposure, current generation in India is also aspiring for a city like New York, Tokyo, which is clean, well-connected —all traits of a smart city. The government has already been working towards an urban renewal and retrofitting program, aka “Smart City Mission”, to develop 100 smart cities across the country.

However, to make it a success, India needs to increase its steel consumption as with a plethora of pre-fabricated and composite steel products coming into the market, the Indian infrastructure can get more durable.

From metro, to high-rise buildings, bridges, and petrochemicals, use of high quality steel plates in infrastructure becomes imperative. It can pave way for a robust infrastructure, which is an aesthetic marvel and at the same time provides efficient services to the people using them, says Sanjiv Mehta.

These factors point to a high potential for steel demand growth in India, but how fast it can be realized will depend upon whether the country can successfully implement its infrastructure plans or not.