AM/NS India: Offering High-Quality Steel to Construction Equipment Sector

AM/NS IndiaRanjan Dhar, Director & Vice President – Sales & Marketing

What makes AM/NS India a preferred brand for construction equipment manufacturers in India?

ArcelorMittal Nippon Steel India (AM/NS India) is a leader in offering the best products and services to the construction equipment business, supplying high-quality steel and collaborating with all the top players in the industry. Many global companies like JCB, Komatsu, CASE New Holland, Hitachi, Hyundai Construction, and Caterpillar are operating in the Indian market. These companies require the right quality of steel (comprising about 60-70% of the weight of any construction equipment) along with consistent servicing. Manufacturing steel for this sector involves advanced technology tailored to specific requirements, including steel that provides high tensile strength, durability, and performance, as the machines endure challenging terrains, operate efficiently, and exhibit longevity.

At AM/NS India, we are deeply committed to our promise: ‘Smarter Steels, Brighter Futures’. The superior product quality, combined with the technological expertise of ArcelorMittal and Nippon Steel, allows us to precisely meet the requirements of construction equipment manufacturers. By tailoring our solutions to this industry, we ensure that we deliver high-quality products. In fact, AM/NS India holds the lion’s share of the construction equipment industry's steel requirements. This success stems from the way we serve our customers and nurture long-term relationships—many of which span over 10, 15, and even 20 years. We have excellent teams that are steadfast in delivering the best value to evolving needs.

We are excited to operate in this dynamic and growing construction equipment industry, which is currently valued at approximately $9.5-10 billion and growing at a CAGR of 12-13%. This sector’s robust growth trajectory of around 14% further fuels our enthusiasm to expand our portfolio and strengthen our presence in this space.

ArcelorMittal Nippon Steel India

 

In India, specialty steel is critical for applications in tipper trucks, excavators, and backhoe loaders, particularly for components like buckets and teeth. Until now, much of this steel has been imported. A key factor is their wear and tear, which demands steel of high tensile strength and abrasion resistance. How is AM/NS steel meeting these requirements?

The critical aspect here is ensuring the right quality of steel, as these components must operate in harsh environments and terrains. Abrasion resistance is especially important for bucket parts, as they function in highly abrasive conditions.

To provide some perspective, about 12-15 years ago, a significant portion of specialty steel for these applications was imported from countries like South Korea, Japan, and parts of Europe. AM/NS India has now successfully achieved import substitution for this specialty steel. At our Hazira facility, we operate one of the best heavy plate mills in the world, a benchmark facility capable of meeting stringent requirements.

We manufacture quench-and-tempered varieties of steel, which are abrasion-resistant and represent advanced, high-technology steel that many companies worldwide struggle to produce. We are proud to manufacture this steel in India and provide tailored solutions to our customers.

Rockstar, for instance, is our abrasion-resistant steel - a quenched and tempered variety designed for applications such as buckets and other areas where abrasion resistance is critical. TUFMAX, on the other hand, is a high-tensile steel tailored for construction equipment, specifically booms and similar applications. These branded steel products cater to the varied demands of the construction equipment segment.

Crane manufacturers are seeking lighter, thinner, and more stringent steel, especially for pick-and-carry cranes and safe cranes with capacities of up to 40 tons. Previously, such steel was unavailable, and manufacturers had to rely on heavier, thicker materials. Are you working on providing lighter steel with higher tensile strength for cranes, especially booms?

We have already made significant progress in this area. Through value engineering in collaboration with our customers, we have successfully converted some non-high-tensile steel to high-tensile variants, such as 500 MC and 700 MC thinner sections from our strip mill. Not only we have supplied these materials, but the response from our customers has been overwhelmingly positive.

In fact, many of our customers have recognized and awarded AM/NS India for this development. We have provided complete solutions tailored to their needs. This innovation, combined with the value engineering we’ve conducted, has delivered significant benefits to our customers, creating immense value for their operations.

India is a developing country, so we need value-for-money steel rather than the high-cost steel. How is the R&D at AM/NS India working to provide reasonably priced solutions while competing with other local manufacturers?

When we talk about value-added steel, it’s essential to consider the total cost of ownership, not just the upfront price. Let me provide an example: our parent company produces a specialized steel solution called MPI (Multiple Part Integration) for the automotive sector. While MPI steel, let’s say, may initially cost around 20% more than regular steel, it offers significant long-term benefits. It reduces the weight of an automobile by 40%, meaning you use 40% less steel. This weight reduction translates to overall cost savings of around 20%, offering substantial value to customers.

Similarly, we introduced two innovative products last year: Magnelis and Optigal. Magnelis, designed for solar applications to significantly extend the lifespan of solar parks, making it a globally benchmarked product. Optigal, tailored for roofing solutions, offers durability and cost efficiency. In both cases, customers receive added value through enhanced product performance and longevity.

It is worth noting that cost-consciousness is not unique to India; customers worldwide are increasingly focused on economic efficiency. At AM/NS India, we address this by leveraging our R&D capabilities to develop innovative products that deliver tangible value. For us, a product is premium only if it offers value to our customers.


ArcelorMittal Nippon Steel India

 

What kind of awareness programs are you implementing under your ESG initiatives to help people, builders, and contractors better understand steel usage?

On the product side, we offer a wide array of steel solutions from ArcelorMittal and Nippon Steel. Based on market needs and developments, we continually introduce new products. To raise awareness of them, we conduct knowledge-sharing sessions and forums for different audiences. One of our key initiatives is the Cross-Functional Team Meeting, where we engage one-on-one with customers and educate them on the steel they are using, and on the more advanced options available to better meet their needs. Many marquee customers in sectors like automotive are benefiting financially from our innovative products and engineering solutions.

We also organize larger forums, such as Retailer Meets, where we engage with 200–300 MSME customers at a time. These sessions are designed to educate participants on our latest product offerings and demonstrate how these solutions can enhance their businesses. Hypermart, our retailing arm, focuses on MSME customers, providing both technical and steel solutions, enabling their businesses to grow. I often say that this initiative fosters entrepreneurship among MSMEs by empowering them with new-age steel solutions to create value in their operations.

How eco-friendly and sustainable are the products of AM/NS India?

Our parent companies ArcelorMittal and Nippon Steel are global leaders in sustainability and low-carbon steel initiatives. In India, 60-65% of our production is gas-based. This significantly reduces carbon emissions per ton of steel compared to our competitors. We incorporate a significant amount of scrap in our steel production as part of our circular economy initiatives, further reinforcing our sustainable practices.

How important is the construction equipment sector to your overall business strategy?

The yellow-goods sector is critically important to us. Our understanding of the needs of this industry drives us to continuously innovate and enhance our products. By providing high-quality premium steel, we enable our customers to elevate their offerings, differentiate themselves in the market, and gain a competitive advantage. We also leverage cutting-edge technological advancements from our parent companies, ArcelorMittal and Nippon Steel, to keep driving innovation in this sector. From a broader perspective, infrastructure and construction account for around 62-63% of India's total steel demand. Within our product range, this segment represents a significant share, contributing approximately 40-50% of our overall demand. This underscores the strategic importance of the construction equipment sector in our business.

What growth do you expect in the coming year and how is the company gearing up to meet rising demand?

The industry is poised for rapid growth, driven by the focus of the Government of India on infrastructure development. This year's budget allocation of ₹11 lakh crore underscores this commitment. There is a strategic alignment between state and central budgets, creating a well-coordinated and nuanced approach to infrastructure investment.

It is evident that the government's emphasis on infrastructure will remain a key driver for India's economic growth. This focus ensures that infrastructure development will continue to play a pivotal role in propelling the Indian economy forward, maintaining its significance in the coming year.

At AM/NS India, we are expanding our capacity at our Hazira plant. A new hot strip mill is currently under development and will be commissioned next year. This will be one of India’s widest hot strip mills, producing finished widths of up to 2,150 mm. The thinner varieties produced by this mill will cater to applications in construction equipment, broadening our offerings for this industry.

AM/NS India is likely the only steel company in the country capable of delivering the entire product range required by construction equipment manufacturers. This includes a wide range of sizes, grades, and products, making us the preferred supplier in this space. Our customers benefit from a one-stop solution, eliminating the need to source steel from multiple suppliers.

This capability has also encouraged many of our customers to establish India as an export hub for construction equipment. They use our steel to manufacture products domestically, not only to meet India’s needs but also to export globally. This is excellent news for India, as it drives job creation and adds value to the domestic economy.

What challenges does the unorganized sector in the steel industry pose for AM/NS India?

The unorganized steel sector poses a considerable challenge due to its lack of adherence to quality norms, process controls, and other critical parameters. Unlike the organized sector, where substantial capital expenditure is required—approximately $1 billion per million-ton capacity—investments in the unorganized sector are sub-optimal. This results in inferior product quality that fails to meet industry standards.

The dangers of using substandard steel are evident. For instance, this year, we witnessed multiple bridge collapses in states like Bihar and Uttar Pradesh due to the use of secondary steel. While it may seem cost-effective in the short term, the long-term implications of using such steel are perilous and costly.

If India aspires to become a developed nation by 2047, it must adopt steel of global standards. This requires a focus on the right quality of steel to ensure the durability and safety of our infrastructure, manufacturing, and overall development. Short-term compromises for immediate gains will inevitably lead to long-term setbacks. At AM/NS, we are committed to providing steel of the highest quality, aligned with the needs of a developed economy, ensuring that India builds a robust and sustainable future.

What is your view of the government's policies for supporting the steel industry?

The steel industry requires two key forms of support: first, it's important to recognize that India is currently in a capital expenditure (CapEx) phase, with significant investments being made to expand steel production capacity. In fact, the steel industry is leading private CapEx investments in the country. The challenge now is ensuring that once these capacities are created, they can be utilized effectively to meet demand. The industry also needs to ensure that there is a minimum profit margin to make these investments bankable, enabling companies to service loans and sustain operations.

On the demand side, the government has made notable strides with infrastructure and manufacturing pushes. Although the last quarter saw a dip, we are confident that the government is aware of this and is taking action to stimulate demand in the upcoming quarters. Overall, the government is making significant efforts to drive demand, and we expect this to continue.

On the supply side, however, we need to consider the global economic situation. For example, countries like China have excess production capacity, leading to predatory pricing. Since many nations have imposed trade barriers, India has become a target market for these low-priced imports. This puts domestic producers at a disadvantage. To protect the Indian steel industry, it is crucial to limit the influx of such imports, as relying on imported steel while exporting raw materials like iron ore is detrimental. India, with its large population, must prioritize value addition within the country for the benefit of its people. This is an area where the government’s support is essential, and we have already made requests to address this issue.

Another key challenge is the rising cost of raw materials, particularly iron ore. As India is a major source of iron ore, any increase in its cost directly affects steel production margins, making profitability harder to maintain. Ensuring stable and affordable access to raw materials, along with measures to address supply-side and cost-side issues, is another critical area where the government’s support is needed.

NBM&CW - January 2025

No comments yet, Be the first one to comment on this.

×

Terms & Condition

By checking this, you agree with the following:
  1. To accept full responsibility for the comment that you submit.
  2. To use this function only for lawful purposes.
  3. Not to post defamatory, abusive, offensive, racist, sexist, threatening, vulgar, obscene, hateful or otherwise inappropriate comments, or to post comments which will constitute a criminal offense or give rise to civil liability.
  4. Not to post or make available any material which is protected by copyright, trade mark or other proprietary right without the express permission of the owner of the copyright, trade mark or any other proprietary right.
  5. To evaluate for yourself the accuracy of any opinion, advice or other content.
Terex India: Track-Mounted Crusher, Screener, Impactor, & 25t Franna Crane

Terex India: Track-Mounted Crusher, Screener, Impactor, & 25t Franna Crane

Terex India offers a diverse range of innovative equipment, including track-mounted crushers, screeners, impactors, the 25-ton Franna crane, tracked trommels and shredders.

Read more ...

ACE Unveils Next-Gen BS-V Backhoe Loader with TATA 74 hp Engine

ACE Unveils Next-Gen BS-V Backhoe Loader with TATA 74 hp Engine

Action Construction Equipment (ACE), unveiled its BS-V AX124 Backhoe Loader, setting new standards for sustainability, performance, and efficiency. The all-new AX124 BS-V Backhoe Loader powered by TATA 74 hp engine is engineered to meet

Read more ...

Tata Hitachi Launches Upgraded Shinrai Prime CEV 5 Backhoe Loader

Tata Hitachi Launches Upgraded Shinrai Prime CEV 5 Backhoe Loader

Taking the opportunity to reposition its backhoe loaders in the highly competitive business segment, Tata Hitachi launched its upgraded Shinrai Prime CEV 5 backhoe loader. It also exhibited its new BS V compliant wheel loader

Read more ...

Escorts Kubota: BLX Series of Backhoe Loaders with 75 hp Escorts Engine

Escorts Kubota: BLX Series of Backhoe Loaders with 75 hp Escorts Engine

Sanjeev Bajaj, Chief Officer, Abhijit Shinde, Head - Material Handling and Compactors and Suresh Ayeegoundanpalayam Kathirvel, Head - Earthmoving Sales, Escorts Kubota, share their expansion plans and business opportunities from the

Read more ...

Schwing Stetter India: Concrete Mixers, Plants, Road Machinery & Crushers

Schwing Stetter India: Concrete Mixers, Plants, Road Machinery & Crushers

Schwing Stetter India, a leading manufacturer of concrete construction equipment in India, has announced a 20% revenue growth target for 2025. The company showcased 45+ advanced machines, including 25% new and upgraded products

Read more ...

SANY India Showcases Construction Equipment as ‘Chariots of Development’

SANY India Showcases Construction Equipment as ‘Chariots of Development’

SANY India, a leading manufacturer of construction equipment, showcased its products under the theme ‘Chariots of Development,’ emphasizing its commitment to contributing to India’s ambitious vision of Viksit Bharat at 2047.

Read more ...

HD Hyundai India: BS V Wheel Loader, 3ton Mini Excavator & 20ton Excavator

HD Hyundai India: BS V Wheel Loader, 3ton Mini Excavator & 20ton Excavator

HD Hyundai India showcases its advanced equipment lineup, including the BS V-compliant wheel loader, a 3-ton mini excavator, and an upgraded 20-ton excavator, catering to diverse applications in the construction and mining sectors.

Read more ...

TIL Limited Unveils Snorkel A62JRT Articulating Boom Lift

TIL Limited Unveils Snorkel A62JRT Articulating Boom Lift

TIL Limited made a triumphant return to bauma CONEXPO INDIA 2024 under the Gainwell Group banner, marking a significant milestone in its transformation journey. The company showcased its successful integration of global partnerships

Read more ...

Etnyre Ties Up with Gainwell for Manufacturing & Distribution of Road Rehabilitation Machines in India

Etnyre Ties Up with Gainwell for Manufacturing & Distribution of Road Rehabilitation Machines in India

US origin road maintenance equipment major Etnyre has entered into a technical and marketing collaboration with Gainwell for manufacturing and distribution of Etnyre products in India. Said Ganesh Iyer, President & CEO, Etnyre

Read more ...

Ammann India: Super-Tech Asphalt Batch Mix Plants & CE Stage V Compactors

Ammann India: Super-Tech Asphalt Batch Mix Plants & CE Stage V Compactors

Road construction equipment behemoth Ammann India is well known for its formidable product offerings in road construction segment. Taking its expertise ahead, Ammann India has recently unveiled a series of new products like an asphalt

Read more ...

Greaves Retail: Advanced Electric Light Construction Equipment Range

Greaves Retail: Advanced Electric Light Construction Equipment Range

Greaves Retail, a division of Greaves Cotton Limited and a leading provider of clean mobility and energy solutions in the e2W, ICE 2W, e3W, ICE 3W, and SCV segments, launched its new range of high-performance electrified light construction equipment.

Read more ...

Dingli: Premium Range of Mobile Elevated Work Platforms (MEWPs)

Dingli: Premium Range of Mobile Elevated Work Platforms (MEWPs)

"Dingli India is catering to the infrastructure industry with its range of MEWPs comprising of scissor lifts and boom lifts,” said Rajinder Raina, President - SAARC Countries. "Our products are designed to cater to various loads at different

Read more ...

Propel Launches Battery Powered Tractor Trailer for Mining Sector

Propel Launches Battery Powered Tractor Trailer for Mining Sector

Propel’s 4x2 EV Tractor Trailer Truck – 470 eTR was unveiled by Shri Bhupathi Raju Srinivasa Varma, Minister of State for Heavy Industries and Public Enterprises. Equipped with high-capacity lithium-ion batteries, this truck offers

Read more ...

Liugong India: Electric Tracked Excavator, Wheel Loader & Reach Stacker

Liugong India: Electric Tracked Excavator, Wheel Loader & Reach Stacker

Liugong India exhibited its electric operated 922 FE, 22-ton tracked excavator, 3.5-ton wheel loader, and battery-operated reach stacker. Liugong’s 922 FE 22-ton electric excavator comes with 1.0 cum HD/1.25 cum general

Read more ...

TH Company Offers Sand Washing Solutions & Thickener as Total Solutions

TH Company Offers Sand Washing Solutions & Thickener as Total Solutions

TH Company’s M-Sand washing solutions and thickener assist in proper processing of the silt material after the process of making M-Sand. Elaborates Satyabrata Misra, Country General Manager, “When producing M-Sand, the residual

Read more ...

Normet India Launches Concrete Spraying Machines & Hydraulic Breaker

Normet India Launches Concrete Spraying Machines & Hydraulic Breaker

Normet, a specialist company in mining, tunnelling, and civil engineering projects, has launched two cost-effective spraying machines and a hydraulic breaker for the Indian market, under its Aliva brand.

Read more ...

Revomac Industries: Robotic 6000 Automated Block Making Machine

Revomac Industries: Robotic 6000 Automated Block Making Machine

Flyash, hollow and paver blocks machinery making specialist Revomac displayed its new automated 'Robotic 6000' machine. Informed Jigar Patel, Director, "The new 'Robotic 6000' is a state-of-the-art machine featuring cutting-edge technology

Read more ...

Macons SOCAGE Offers Aerial Work Platforms (AWP) of 12 to 24-m Height

Macons SOCAGE Offers Aerial Work Platforms (AWP) of 12 to 24-m Height

Jainil D Surelia, Director, and Alberto Lunardon, CEO, share their views on the company’s contribution to the Indian construction industry and the growing demand for higher and safer AWPs. Macons SOCAGE offers Aerial Work Platforms

Read more ...

To get latest updates on whatsapp, Save +91 93545 87773 and send us a 'Saved' message
Click Here to Subscribe to Our eNewsletter.