Focus East: Shyam Steel’s 'growth with responsibility' march towards Rs 10,000 cr

One of the pioneering TMT bar manufacturers and suppliers in India, Shyam Steel’s more than six decades journey has been remarkable. Stepping into the world of manufacturing industry with the establishment of a small factory in Howrah, Kolkata in the year 1953 to ‘Build the Nation with the right mix of Strength & Flexibility’, its founder Shriram Beriwal was joined by Shyam Sunder Beriwal, his younger brother, in forging the legacy of Shyam Steel. The company has a strong reach in Eastern India, besides a nationwide presence.

Shyam Steel’s products are utilized by the Indian Railways, National Highway Authority of India (NHAI), Nuclear Power Corporation of India (NPCI), Military Engineering Services, and others. Its state-of-the-art engineering, process of manufacturing, and quality design have provided the pliability and robustness to the TMT steel bars needed for the construction industry of the present times.

Shyam Steel has gained the revered GreenPro Certification from the CII-Green Products and Services Council and has associated with celebrities such as Sonu Sood, Vijay Deverakonda, Virat Kohli and Anushka Sharma, and Ravi Kishan. Its brand campaigns are well recognized, emphasizing the brand’s commitment to strength and flexibility. Its campaign, titled ‘Maqsad Toh India Ko Banana Hai’ featuring actor Sonu Sood, throws light on the role played by Shyam Steel in strengthening relationships, helping people to accomplish their dreams and thereby contribute actively to the process of building the nation.

The CSR initiatives of the company are in the areas of women empowerment, education, elimination of hunger, and poverty, and conservation of the environment. It has partnered with Olympic medalists Manpreet Singh and Lovlina Borgohain, besides launching the Shyam Steel Apna Ghar app, offering individual home builders an all-inclusive solution for their construction requirements.

Shyam Steel operates through the Steel Manufacturing Plants situated in West Bengal, with the manufacturing of its products in the Durgapur steel plant. Shyam TMT Rebar, its flagship product is utilized in several projects for bridges, energy and defense, rails, airports, and roads, and is immune to corrosion and earthquake. The product portfolio of Shyam Steel, which is one of the most cost-friendly steel producers in India, also includes FlexiSTRONG, appropriate for regions prone to earthquakes and with the capacity for the absorption of seismic forces. It also provides waterproofing solutions through Sturdflex given most of the homes face damage due to water within 12-18 months of construction.

Currently, the turnover of the company has exceeded Rs 6,000 crores, with the plan to reach a total turnover between Rs 9,000 crore and Rs 10,000 crore within the next 2-3 years with a robust expansion strategy in the process.

It is driven by its philosophy for the production of sustainable, quality, and safe steel backed by technological innovation and in-house R&D, making a valuable contribution to the national progress in the steel sector in alignment with India's vision for 2030. Its vision is to move towards growth with responsibility, emphasizing overall well-being.

In conversation with Adgully as part of the special Focus East initiative, Megha Beriwala, President – Marketing, Shyam Steel Industries, sheds light on the current market trends, challenges and opportunities in the TMT bar industry in the East market as well as the evolution of consumer behaviour, and much more.

Emphasizing on the need to tailor marketing strategies to regional preferences, Megha Beriwala said, “As far as Shyam Steel is concerned, it has very cautiously analyzed the nature and extent of the changes in the existing market, and the challenges that come with it, as well as the new consumers of the TMT Bar industry, especially in the East market. What we have seen, apart from spending on brand endorsement, TV commercials, and other conventional methods of marketing, market diversity, linguistic challenges, and most importantly, competition from regional players, are very critical aspects in this regard. Naturally, it becomes obvious as to how one goes about adapting to the marketing strategies to regional preferences, festivals, and cultural nuances.”

Megha Beriwala further pointed out, “However, a major opportunity lies in increasing consumer awareness, as people are keen on seeking detailed product information before making purchasing decisions. Shyam Steel has meticulously leveraged this by sharing comprehensive product details on social media, addressing consumer queries, and prioritizing  transparency.”

Reflecting on how the company has customized its marketing initiatives to suit festive preferences and bolstered relationships with dealers, Megha Beriwala noted, “The company has also tailored its marketing efforts to regional festivals like Bihu, Rath Yatra, Ram Navami, and Chhath, establishing an emotional connection with local audiences through customized collaterals and gifts. Strengthening relationships with dealers through personalized initiatives has cemented trust and reinforced credibility. Successful campaigns like the TVC Contest have generated remarkable consumer engagement, and many more such contests and campaigns have been taking place around the year. Thus, by adopting this consumer-centric approach, adapting to the evolving regional preferences, and focusing priority on transparency, Shyam Steel has been able to build a strong brand reputation and loyal customer base across the East market.”

Commenting on the marketing & media mix strategy of Shyam Steel as well as its market share, ad spends in the East market, and the way it is careering to the needs of the East market, she said, “It is quite satisfying to say that Shyam Steel has, by now, been able to craft a comprehensive 360-degree marketing strategy to fruitfully reach and effectively engage its target audiences in the East market. In its ATL campaigns, Shyam Steel has prudently focused on popular regional TV channels as a part of market inclusion. This involves partnering with well-known regional shows and award events like the Zee Sarthak Sansar Awards in Odisha SAREGAMAPA Odiya and Filamchi Bhojpuri Awards. Besides, the ad placements have targeted the national channels for the L-bands and the Aston bands for increased visibility.”

Adding further, Megha Beriwala said, “One of the major areas has also been outdoor advertising with billboards and hoardings at airports, railway stations dealer points, etc. Again, an ATL campaign that was employed by Shyam Steel was its principal sponsorship of the Lucknow Super Giants team in the much-awaited IPL 2023 season generating very fruitful and effective advertising on the JIO Cinema application. Importantly, Newspaper and magazine advertisements in both national as well as regional levels also substantially bolster the mediascape of the brand.”

Megha Beriwala also highlighted how the brand has established strong connections with consumers even in the remotest part of the country, saying, “In addition to its  ATL initiatives, Shyam Steel has simultaneously carried out extensive BTL campaigns to maximize its reach and make its presence felt more stoutly in different regions. This includes innovative initiatives such as wall paints and wall wrap in rural and semi-urban areas, around dealer properties, ensuring visibility more conspicuous at the grassroots level. Auto branding and canter activities have further expanded the brand's reach, allowing it to connect with potential customers even in the most remote and inaccessible areas. It bears reiteration that during major festivals like Bihu in the Northeast and Diwali in Jharkhand, Shyam Steel stimulates its local presence by displaying images of its business partners alongside its brand ambassador, Virat Kohli, at sales counters. It inevitably establishes a personal touch. Such a strategy not only celebrates the brand's partnership but also carries a strong message to the local communities enlisting deeper confidence for the brand as well as reinforcing the trust reposed in Shyam Steel products. Moreover, Shyam Steel has extended its support to the dealers through in-store branding initiatives aiming to strengthen relationships and consolidate customer trust. This multifaceted marketing strategy has enabled Shyam Steel to effectively connect with its target markets across multiple states while maintaining a pan-India vision with a clear roadmap for increased penetration.”

Discussing the core of the creative communication process at Shyam Steel, Megha Beriwala shared, “Contextually, at the core of Shyam Steel’s creative communication process, lies a focus on product information, brand legacy (spanning over 70 years), and sustainability efforts. The company’s creatives prominently feature the GreenPro logo, highlighting its recent GreenPro Certification by the Confederation of Indian Industries for its Fe 500D (GPSSM345002) and Fe 550D (GPSSM345001) products. This certification underscores Shyam Steel’s unwavering commitment to sustainability and the delivery of superior-quality products, catering to the evolving needs and preferences of the East market.”

Beriwala informed, “What Shyam Steel essentially aims at is to fully keep the consumers abreast of its offerings, benefits, and how its products meaningfully contribute to the realization of their dreams. By employing this comprehensive marketing mix and tailoring its strategies to cater to the diverse requirements of the East market, Shyam Steel aims to establish a strong emotional connection with its target audiences and reinforce its position as a leading TMT Bar brand in the region.”

Elaborating on the focus areas of Shyam Steel in 2024 in the East market and the medium in which it is investing more, Megha Beriwala pointed out, “As far as Shyam Steel’s market strategy for East Market in 2024 is concerned,  we are determined to make deeper penetration in the regional markets for heightened output. Given the nature of our product as a commodity, we consider that we must employ a balanced approach that leverages both traditional and digital marketing strategies. As a matter of strategy, our primary focus will be on a judicious mix of traditional and digital mediums. As things stand now, traditional marketing channels continue to be relevant and their impact on many regional markets is widely embraced. Therefore, we will explore innovative ways to make full utilization of the potential available in this area to make our reach more extensive and brand visibility more conspicuous. But, given the growing importance of digital platforms and their ability to connect with audiences easily, we will make the best use of their efficacy. Thus, our strategy will involve seamlessly integrating digital marketing initiatives to complement our traditional efforts. This synergistic approach will allow us to leverage the strengths of both mediums, maximizing our reach and engagement across various segments of our target audience. One notable example of our digital innovation is our “Apna Ghar” platform, a one-stop solution for all construction material needs. This platform provides expert guidance, a free material calculator, and hassle-free delivery, helping customers from start to finish. In other words, we can say “Neev Se Pravesh Tak”. It has facilitated order placement and seamless communication with regional markets, demonstrating the potential of digital strategies in enhancing our market penetration and customer outreach.”

Discussing how Shyam Steel is leveraging digital media, technology as well as influencer and social media marketing and its performance in 2023 in the East market and the growth projections, and expansion plans for 2024, Megha Beriwala said: "In an age of fast-changing technological landscape, evolving market needs, surging customers' aspirational level and fierce competition in the market, it is challenging to reach out to the wider segment of audience through the available platform in a productive way. Shyam Steel's perspective is very clear, what it has done is strategically invest in its social media presence to engage with consumers and shape their perceptions of the brand and the steel industry by way of utilizing platforms like Facebook, Instagram, LinkedIn, Twitter, and YouTube. It seeks to create targeted content highlighting its commitment to quality, safety, and sustainability. This is done through product posts, educational posts, and contests to ensure that the audience is kept active. As already said, Shyam Steel also focuses on the regional festivities by providing content related to festivals like Chhath, Bihu, Onam, Baisakhi, etc. which helps to target audiences across the regions. Customer engagement in the company's TVCs is very high, boosted by initiatives such as the TVC Contest. Dealer testimonials also establish Shyam Steel's good partnership with the dealers, and therefore,  customers. Shyam Steel primarily aims at constantly strengthening its market reach in regions where growth prospects in the country are quite high. It aims to extend its outreach by associating its brand with popular, reliable, and acclaimed public figures in diverse areas. The engagement of Anushka Sharma, Virat Kohli & Vijay Deverakonda as brand ambassadors by the Company is one such initiative whereby it carries to the market and customers Shyam Steel products' invincibility, strength, and flexibility with unmatched qualitative excellence as those of its brand ambassadors."

Throwing light on the marketing plans of Shyam Steel for 2024, Megha Beriwala said: "It bears repetition to say that Shyam Steel has crafted ambitious marketing plans for 2024  aiming to redouble its brand visibility and engagement through a robust online presence and impactful content marketing campaigns. Leveraging the power of digital platforms, such as social media, the company seeks to reach the widest possible audience and establish itself as an innovative thought leader in the industry. In 2023, Shyam Steel registered remarkable growth because of its outreach to the customers with unmatched qualitative excellence of its range of products through effective brand marketing initiatives. Standing on a rock-bottom foundation built over the last seven decades, the Company now represents the hopes and aspirations of millions of customers far and wide. It is poised for further growth to meet the objectives of ViksitBharat @2047, and in this forward journey it envisions to make its digital presence more pronounced and visible."

Commenting on the support by government for its growth journey in alignment with the goal towards Viksit Bharat, Megha Beriwala shared: " The company is also confident that the growth trajectory will be adequately supported by government initiatives and policy interventions such as investment-friendly policies and improved logistical facilities besides an incentive policy for the medium sector steel makers on the lines of the Production-Linked Incentive (PLI) Scheme as already introduced for the large-scale sector and policy of linkage of coal block and iron ore mines for steel producers in the MSME sector who remain the fulcrum of the whole industry. The intended policy measures will help Make in India and Atmanirbhar Bharat Abhiyan or we can say "Maksad Toh Hai India Ko Banana Humesha Ke Liye Strong" the desired goal towards the journey to Viksit Bharat. Importantly, Shyam Steel's efforts are on the one hand directed towards the realization of India's steel production targets of 300 MT by 2029-30, increasing per capita steel consumption as envisaged in the National Steel Policy 2017 and, on the other hand, enlist cent percent public trust to its range of products on a pan-India basis. The core of Shyam Steel's business ethics – growth with responsibility – is thus been embedded in its vision and mission – a vision where people’s expectations and commitment to the national goals converge for “Sab ka saath, sab ka vikas, sab ka vishwas”.