Insights from Sarthak Metals: Pioneering Steel & Biotech Ventures – An interview with the Vice President

On 1 April 2024, Alphastreet conducted an interview with Sagar Shah, Vice President, Sarthak Metals Pvt Ltd. In the interview, Mr. Shah shed light on their market positioning, expansion into biotechnology, and innovative product additions, offering a glimpse into their future plans and goals. With a keen focus on sustainability and cutting-edge solutions, Sarthak Metals emerges as a trailblazer, navigating challenges with resilience and foresight. We present below an insight viz the form of Questions and Answers:

1. Sarthak Metals has been a key player in the steel-making processes for several years. How has the company strategically positioned itself in the market, and what sets it apart from its competitors?

As you rightly said, Sarthak has been a key player in overall steel treatment for various end use applications. Our products offer modern metallurgical solutions not only for steel production but also for foundries. Both the industries are the backbone of any economy which sets a very optimistic path ahead for our growth. Our central location will always be a strong case, amidst the hub of steel industry. Apart from just our location, our strong customer relation spanning over 2 decades is what really sets us apart from our competition. The strength we hold due to our strong balance sheet gives us an edge to execute orders in a short notice which is very much appreciated in the fast moving industry.

2. Your company has recently ventured into the Biotechnology industry. Can you tell our audience the challenges you faced in this industry?

Biotechnology is a highly technical area which is a challenge becoming a strength for long term. The industry is constantly evolving and to get onboard the latest trends can be tough. Logistics is another area of challenge in this industry due to its niche applications. Continuous R&D expenses can also be challenging for companies newly entering the space.

3. What prompted the diversification of the company into the Bioeconomy industry, specifically industrial enzymes, and how does it align with the company’s overall growth strategy?

The biggest trend of sustainability got us interested in the field of biotechnology and its constantly increasing penetration in the Indian economy, vast areas of application gives us a choice to concentrate on the most potential industries. Bio-enzymes are a widely accepted industrial bio-catalysts which helps in production optimization for various industries. Sarthak being the first company to set up bio-enzymes manufacturing facility gives us an advantage to introduce our services for the industries around us. Our vision to provide bio-solutions to a number of industries perfectly aligns with the company’s long term growth plan. We are certain that this diversification will strengthen the company’s technical prowess and will further make our balance sheet much stronger.

4. Can you provide a glimpse into your company’s future plans and goals regarding bio enzymes?

Biotechnology offers us room to explore ideas which the company is highly optimistic about, in the long run. The plan is to start gaining market share in industries where bio-enzymes application is already underway and absolutely necessary. To start with industries like Detergents & Textile, Distilleries will give us a momentum. Further, our goal is to largely penetrate some futuristic amd very promising areas of application of biotechnology like alternate energies, water treatment and our continuous work on the field in ongoing as we speak.

5. For entrepreneurs interested in entering the bio enzyme industry, what advice would you offer based on your company’s experience?

It is a highly promising area of research. To all the entrepreneurs working on this, I would suggest to keep working consistently. The penetration of biotechnology has just begun in the country and the trend of sustainability is a forever one. Feel privileged to be onboard with this trend in a once in a life time period where the world is looking at us and our research and talent is globally welcomed.

6. What strategies did your company use to benefit from industry consolidation in the cored wires market, aiming to boost margins and form key partnerships with major steel players?

We did a lot of groundwork to ensure the best of qualities and services get delivered from Sarthak to all our valued customers. Our technicians have developed strong relations with the user departments of different plants to help them optimize the use of different alloys used at different stages of steel treatment. Our capability to deliver goods in tough times and in short notice has put us in good books of a lot of customers. We have always stuck by the quality of goods and services that we provide and that has helped us to maintain our margins even in tough competition.

7. How did the company expand its product range to Alum Flipping coils and then to FCW navigating challenges and strategic decisions behind these additions?

As a business-oriented family group, we have always been on a hunt of new opportunities. At an early stage, we had identified a technological requirement of adding aluminum in the steel processing in a rod form for a uniform melting. We started introducing the product slowly to our customers and having the expertise metallurgical solutions, the idea got implemented pretty quick. That’s when we started full time trading of the product while building the facility for manufacturing ourselves.
FCW is another yet very nascent technology identified which was falling short in the market and being surrounded by fabrication houses, our potential customers, we started exploring the project. It directly compliments our product portfolio and it has put us in a very sweet spot to cater to a very much booming industry. Our location and early adoption of technology will help us capture good share of market.