Dilip Dev, Chairman, HD Wires, shares more on the company and the industry scenario.

Could you brief us on the company and its major achievements?
Incorporated in 1988, HD Wires began production in July 1994 and has stepped into its 25th year of operation this year. The company celebrated its remarkable 25 years on March 16, 2019.

What are the products and solutions offered by the company? What are the offerings for construction industry?
HD Wires started its operations with manufacturing of binding wires and HB wires that were used for construction and nail production. Today, we are producing a total of 15 products that include galvanised wire, high carbon wire, mild steel wire, armouring wires, stitching wire, wire nail, roofing nails, binding wire, barbed wire, welded wire mesh, chain link fencing wire, welding electrodes, stay wire, cable tray and rivets. We are supplying our products to majors of the infrastructure and construction companies (including L&T, Shapoorji Pallonji, Dilip Buildcon, Ratanmani Metals & Tubes, Welspun, NCC etc).

Could you give us an overview on the production capacity and facility of HD Wires?
When we started our operations in July 1994, we were producing maximum of 300 tonne per month (TPM). Currently, HD Wires is manufacturing 135-165 tonne per day (TPD) with an average of about 4,000 tonne monthly. With improved and advanced machineries installed in our facility, we have an average capacity of 5,000 TPM which is expected to grow to 6,500 TPM by May 2019. We will also bring two new products in the market - Cable Tape and PC Wire.

Which are the major markets for your products? Who are the key customers?
As of now, we are (predominantly) delivering our products to Maharashtra, Gujarat, Jharkhand, West Bengal, Odisha, Uttar Pradesh, Rajasthan, Madhya Pradesh and the southern states. At present, we are supplying in 12-13 states. HD Wires has been exporting to Nepal for the last 10 years. We also export to countries like Bangladesh, South Africa, and Sri Lanka. Our major export share comes from Dubai where we have some prominent clients. Currently, we are exporting around 5-6 per cent of our total production. We don't wish to increase our export percentage any further in near future as there is no export viability for the Indian steel goods manufacturers, especially when raw material availability is under stress in India and China is able to offer export at competitive prices. Moreover, imposition of Minimum Import Price (MIP) and subsequently AD, on various steel products has further put stress on raw material availability.

How do you look at the current market scenario?
We are expecting a huge demand growth for the next two years. The growth in power, infrastructure, and other sectors is sure to give steel wire industry a boost in the market. I believe that as there will be growth in economy and infrastructure, the steel market will also widen. Major producers know that the consumption of steel is increasing and they are well-equipped to meet the soaring demand. The per capita steel consumption of India is one-third (69 kg) of the world's average (214 kg) and the country has yet to reach its optimum potential in steel consumption.

What are your expansion plans?
We are looking forward to double the capacity in less than two years. At present, we are producing 5,000 TPM, and HD Wires is expecting to touch 7,000-7,500 TPM within six months.