Key takeaways from AISC 2.0: Young turks share their take on future trends in steel industry

• Industry needs to embrace AI for greater efficiency
  
  
• Companies could mull investing in new-age businesses

  
  
  

The All India Steel Conclave 2.0, held on 10-11 January 2025, featured a thought-provoking session titled "Future Leaders of the Steel Industry: The Young Turks", showcasing next-generation leaders from prominent organisations in the steel sector. Moderated by Saurabh Agarwal, Director of API Spark and Powertech, the panel included diverse young leaders who shared their insights, experiences, and visions for the future.

Key takeaways

1. Balancing tradition, innovation

Gaurav Agrawal, Director of Real Ispat and Power, emphasised the importance of respecting foundational values while adapting to new methods and technologies.

2. Remaining committed to core values

Mridul Agarwal, Executive Director of Shakambari Group, highlighted core values like honesty, integrity, and hard work as essential for navigating industry challenges.

3. Utilising communication in transition periods

Govind Ghanshyam Goyal, Executive Director of Kalika Steel Alloys, stressed the importance of clear and consistent communication with stakeholders during generational transitions.

4. Adapting to changing times

Abhishek Agrawal, Executive Director of Godavari Power and Ispat, discussed how innovation drives growth, citing their partnership with Siemens to generate free power from waste gases.

5. Venturing beyond traditional businesses

Anant Sarda, President of Sarda Energy and Minerals (SEML), shared his journey of establishing a family office focused on pre-IPO investments and strategic partnerships, creating synergies between their core and business investments. He emphasised asset allocation for consistent returns and discussed their experiences with strategic investments in startups such as NowPurchase.

6. Vision for future

Investments in energy and decarbonisation were cited as key focus areas. Technological advancements and strategic diversification were referred to as essential in maintaining a competitive advantage. Meanwhile, collaboration with startups and innovation-driven enterprises was highlighted as another strategy for growth.

a) Investing in innovation, technology

Madhur Gupta, Executive Director of Lloyds Metals and Energy, highlighted their plan to grow production from 10 to 25 million tonnes (mnt) per annum, with a focus on logistics innovation, workforce training, advanced machinery, and a customer-centric approach.

He also elaborated on how the company has been harnessing positive results through their "forward integration" strategy. The company has been setting up steel plants to align with its vision of value addition and market diversification.

Govind Ghanshyam Goyal explored how Kalika Steel Alloys from Jalna is driving innovation through investments in advanced rolling mills, automation, and scrap-based production.

Another example was given by Gaurav Agrawal, who highlighted the expansion of Real Ispat and Power. The company has launched a new manufacturing unit in Bhadapara, venturing into pellet and ferro alloy production. Their focus on backward integration, diversification into special alloys, and prioritising quality and efficiency underpins their long-term growth vision.

Anant Sarda detailed SEML's focus on energy and mineral expansions, including coal and iron ore mines and investments in hydro and coal-fired power plants.

b) Turning around sick units

Mridul Agarwal explained how the company has been reviving non-performing steel plants through root cause analysis, operational restructuring, and financial restructuring in addition to cultural transformation.

8. Increasing applications of AI

Towards the conclusion of the session, the topic of artificial intelligence (AI) came up, especially the opportunities and challenges posed by it in the transition phase. The speakers asserted that AI would play a pivotal role in the transformation of the steel sector by enhancing efficiency and automation. While there have been concerns about workforce displacement, AI offers significant gains in efficiency and accuracy. Overall, the leaders emphasised the need to embrace AI, retrain the workforce, and leverage it as a tool for progress.

Conclusion

The stories of these companies underscore the transformative power of innovation, strategic investments, and visionary leadership in propelling the steel and minerals industry forward. Whether it is scaling production, revitalising struggling units, or exploring new market opportunities, these strategies collectively pave the way for sustainable and profitable growth in a highly competitive sector.

At this pivotal juncture, companies such as Real Ispat and Power are leveraging strategic integration and diversification to solidify their market positions. Concurrently, AI is revolutionising the industry by enhancing efficiency and redefining traditional roles. By harmonising technological advancements with human ingenuity, the steel industry stands poised to unlock unprecedented growth opportunities and embrace a future of prosperity.