How this steel bars maker from Kolkata built a Rs 2500 Cr turnover company, also endorsed by Virat Kohli and Anushka Sharma
At present, Shyam Steels employs over 5,000 people and provides TMT steel rebars to Indian Oil, Essar, L&T, and Reliance Infrastructure for their various projects. It also serves the metro railways in Delhi, Chennai, Bengaluru, and Kolkata.
Providing a ‘Perfect Balance of Strength and Flexibility,' as their tagline says, Shyam Steel is one of the leading primary TMT bar manufacturers and steel producers in India. The company was founded in 1953 by Shriram Beriwala.
When Shriram's younger brother Shyam Sundar Beriwala joined him in his venture, the company had foreseen that the infrastructural growth in the country would require quality steel. The resources such as iron ore, coal, and quality workforce were available. Thus, the brothers decided to make products that were critical to the foundations of infrastructure - steel bars.
Shyam steel now clocks Rs 2500 crore turnover and is an inspiration for all manufacturing MSMEs.
The brand has also been endorsed by the topper in the list of brand endorsers, Virat Kohli along with his wife Anushka Sharma.
The company’s board of directors told SMBStory, "The family were followers of the Hindu god Krishna and their beliefs inspired them to adopt one of his names -Shyam.”
To make these steel bars, the brothers set up manufacturing units at various locations in West Bengal. Under their leadership, Shyam Steel had to navigate major changes in the demand and supply ratio, the board says, adding, "The founders were able to service the core industry sectors in order to keep growing."
Over many years, Shyam Steel became one of India’s biggest TMT (thermo mechanical treatment) steel rebar (reinforced steel bars) manufacturers. Today, it employs over 5,000 people and provides TMT steel rebars to projects by Indian Oil, Essar, L&T, Reliance Infrastructure, and many others.
Notably, it has provided its steel products to the Metro Railways in Delhi, Chennai, Bengaluru, and Kolkata. Eastern Railways, South Eastern Railways, and North Eastern Railways are also among it clients.
The celebrity connect
To stay relevant in the digital era, Shyam Steel has chosen Virat Kohli and Anushka Sharma to advertise them. This was because they felt the celebrities had something in common with the steel maker.
"As they are one of the best in their respective fields, we thought they could represent us better. So we choose Virushka to represent Shyam Steel as one of the best TMT producers for anyone to build their dream house," the board says.
The Shyam Steel ads have the tagline ‘Perfect Balance of Strength and Flexibility’ and make a comparison with love keeping Virushka together and the company’s steel bars holding homes together.
These ads have received a positive response, according to the company. Shyam Steel has also planned a host of other digital activities to build on the brand.
The digital drive comes on the back of a strong push for visibility for the TMT rebars, which are made in Shyam Steel's four steel manufacturing units.
Among these units is an integrated steel plant at Durgapur with facilities such as direct reduced iron unit, continuous billet casting mill, high-speed rolling mills, assurance, testing labs, and more.
According to the company, the TMT rebars made here have consistent quality along with uniform grades, dimensions, and tolerances. They are also stable, durable, and are easy to work with.
It also says that Shyam Steel’s TMT ReBars Fe 500D are ideal for applications in heavy load reinforced cement concrete structures such as flyovers, dams, bridges, and other critical structures where high yield load (design load) is required without compromising on the ductility.
The board says, ‘It is a FlexiStrong TMT, giving the structures the right amount of strength along with the necessary flexibility and ductility. Also, we have adopted the best technology available in the industry - Concast AG Zurich technology for billet casting, as well as thermex for quenching of TMT bars.”
Further, the rebars do not require pre or post welding treatment as they have low carbon content and are produced under controlled thermomechanical treatment. The Kolkata brand also makes sponge iron (direct reduced iron), billets (cross-sections of metal), and ferroalloys (iron alloys).
These products are sold in B2B as well as B2C channels. The company’s focus in the B2B channel is supplying strategically-important projects of nation-building along with industry-best steel TMT bars, the board says. And in B2C, Shyam Steel operates through channel distribution to reach customers looking to build homes.
For the brand, this customer-focussed approach translates into not worrying about the competition since it prioritises using the available material in the best possible way to service its customers.
The board says, “The vision of the company is to ensure that the same steel that India uses for its major infrastructure projects is also available to each of its citizens for their personal home building at an affordable rate.”
In line with this vision, Shyam Steel aims to have a retail store built in every Indian district and town by 2025.