“Suitable IT is crucial for small biz”-By Rajdeep Sehrawat, NASSCOM
July 8, 2008 1 Comment
The extreme price sensitivity of the Indian MSME segment is often cited as a major reason for the reluctance of leading IT firms to look at the MSME segment as a viable market…
I want to use IT but find it very difficult to get good IT firms to show interest in my small firm.
“Managing IT is very challenging as I need to deal with many suppliers and each supplier blames the other suppliers when things do not work.” “Am I running an IT firm or a manufacturing firm?” “We have invested considerably in IT but are not sure whether we derive any value from these investments.”
These statements have been culled out from my conversations with IT users belonging to the micro, small and medium enterprises (MSME) segment across the country. But they truly believed that IT could help their firms become more competitive.
Eager to learn the supply side perception, I also spoke to some IT firms who are active in the domestic market and got very different reactions. “Indian SME users are only interested in paying low prices and not interested in good quality and advanced functionality.” “They expect IT services to be provided free.” “The users can never decide on their requirements and do not believe in paying for changes.”
Intellectual argument
These conversations clearly indicate an adversarial relationship between MSME IT users and their suppliers. Irrespective of who wins the intellectual argument, the fact remains that IT adoption in the Indian MSME segment significantly trails behind their counterparts in comparator economies like Brazil and China which is rather unfortunate given the transformational tailwind IT can provide to the MSME firms and the presence of a strong IT industry in India.
The extreme price sensitivity of the Indian MSME segment is often cited as a major reason for the reluctance of leading IT firms to look at the MSME segment as a viable market. However in most of my conversations with MSME IT users, while affordability of IT products certainly got raised as an issue, appropriateness of technology and complexity of IT management came across as more significant IT adoption barriers.
A majority of branded IT products available at national level have been created in a context which is quite different to the context of the Indian MSME segment resulting in these products being quite alien to the MSME user’s requirements. A good illustration of this contextual dichotomy is that one of the most ubiquitous office productivity products available in India uses English(US) as a default language setting and does not allow numbers to be expressed in lakhs, crores etc.
Core complexity
While trivial, these shortcomings often become a source of major irritation for users. Many product vendors release ‘lite’ version of their products for the MSME segment by removing some of the more advanced features from the base product.
These lite versions are rarely successful as they do not address the core complexity of the product. During a recent interaction with MSME IT users in Jamshedpur recently, I was surprised to learn that while most of the users were dissatisfied with the better known branded ERP products, a locally created ERP product seemed to be widely popular.
Even a bare minimum IT infrastructure in a MSME firm will include a few PC’s, printers, LAN, disparate applications etc typically sourced from multiple vendors. Managing multiple vendors, technology obsolescence, software licensing and upgrades, application changes require IT capabilities most MSME firms lack leading them to rely heavily on their local vendors. With most local vendors themselves lacking capabilities to offer good quality solutions, MSME users never seem to get a bang for their IT buck and consequently develop a sense of uncertainty vis-a-vis IT resulting in a cycle of IT under-investment. Typically IT adoption only focuses on automating routine tasks and the IT sourcing philosophy is predicated on the cheapest which is often low quality.
Cloud computing
For IT adoption to increase in the MSME segment IT needs to become integral to the firm’s business operations and treated at par with any other business infrastructure e.g. plant machinery. This transformation can only happen if both MSME users and IT suppliers are prepared to move away from conventional IT usage and delivery approaches and boldly experiment with new models.
While it is still early days, Software as a Service (SaaS) aka ‘cloud computing’ is a technology which perhaps has the disruptive potential to overcome conventional paradigms.
The ubiquitous Indian cable TV model is a good illustration of what SaaS can achieve. Indian cable TV users access a localised bouquet of channels paying a monthly fee without worrying about how and where the content is created, what technology is used for broadcasting etc. The cable viewer’s only capital investment is the TV with the local cable TV operator resolving all issues. Similarly SaaS can help create an IT model analogous to cable TV where remotely hosted IT applications are made available to a MSME cluster over a reliable telecommunication network with the user paying a subscription fee.
Each user only has to invest in an internet connected PC(s) which can also avoided if the service provider ‘bundles’ the hardware and connectivity as part of the package.
Adhoc changes
Detractors cite the lack of personalised support and user specific customisation as two key weaknesses in SaaS. Most of the production and back-office processes of firms in a local cluster possess a high degree of uniformity with the differences often being due to adhoc changes in the firm over a period of time rather than due to any fundamental differences in the processes itself.
After all how different can processes like inventory management, payroll, accounting, supply chain management be? Most good SaaS based applications will anyway easily lend themselves to customisation in usability features including screen layouts, reports etc. Personalised support can be optionally offered to the users by creating differential support levels e.g. silver, gold, platinum, priced accordingly. While success in the SaaS approach will be predicated on scalability, information security, service reliability and solution flexibility, getting the right commercial model in place is perhaps the single most important factor for success. The commercial model needs to be scalable and volume based with an attractive base price for the core applications and include a basic support level with additional applications and higher support levels being priced differentially.
Cost effectiveness
The benefits of SaaS are tremendous for the user. Firstly, it allows the user to focus on using IT to run his business instead of investing efforts towards managing his IT infrastructure. Secondly the user gets access to best practices and technologies which are incorporated in the general solution at no significant cost to the user. Most importantly SaaS allows users to move their IT expenses from CAPEX to OPEX thereby allowing them to adopt IT without getting locked into expensive hardware and software.
In the current scenario MSME users invest substantially in implementing ERP before being able to use it and mostly end up procuring more than they require. SaaS based ERP solutions can allow users to ‘cherry-pick’ applications as per their business requirements and comfort levels at an incremental increase in costs. While the above may sound a little far-fetched, the success of firms like salesforce.com has established the viability of the SaaS paradigm. In India itself, entrepreneurs are already launching SaaS based applications aimed at specific industrial clusters.
The IT adoption challenges of the millions of firms in the Indian MSME segment represent a tremendous business and innovation opportunity for the IT industry. Harnessing it will require IT firms to relinquish their existing dogmas about the ‘difficult’ MSME user and go the extra mile to develop deep understanding of the fundamental IT adoption pain-points of MSME users in order to create innovative solutions and commercial models which can increase the current dismal IT adoption levels in the Indian MSME segment. As Peter Drucker aptly said, there are no unreasonable customers, only lazy suppliers.
DearSir,
GOOD MORNING, I am I.V. SUBBA RAO, I Have developed advanced new technology, it is named as iron ore pellitization. Still it is not introduced in India for small and major sponge iron manufacturing industries.
We are planning to set up 50 T.P.D Commercial production plant, its cost is around 24 Cores, but we are not financially sound enough. We have recently applied for patent rights, regarding this technology so many domestic and other country small scale sponge iron manufactures are contacting through mails and through phones. Lot of customers is interesting to utilize our technology, while before that they want to see the operation plant personally.
If I set up 50 TPD plant id both ways it is like to pellet plant as well as commercial production plant.
If any one help me financial loan of Rs 24. 0 Cores (Indian currency). I will set up the plant as early as possible (6.0 to 8.0months).
After starting the commercial production we will start clearing ours loan immediately, other wise if want sponge iron material we will supply the material (just like barter system).
But I can not show you any security like property or any other documents also, because I am a normal private employee.
I am waiting for your early response.
Thanking you,
I.V.SUBBA RAO
RAGHUVAMSI TECHNOLOGIES
Ho.No.14-5-11.
OPP.BATCHU SRI DEVI HOUSE
SHIVALAYAM STREET
PEDDAPURAM
PIN:-533 437
ANDHARA PREDESH
INDIA-533437.
MOB:-09490188826
IF YOU WANT PLEASE SEE THE NOV2007 INTERNATIONAL STEEL MAGAZINE
New Technology of Iron Ore Pelletization for DRI / Sponge Iron
New Generation for Sponge Iron Steel Plant / Industries
I have developed & Research one new technology in Sponge Iron i.e. Iron Ore (powder) Pelletisation. This concept is developed physically and practically. After completion of this experiment we have tested this material by Joyti Spectro Analysis Pvt Limited, Hyderabad .
Presently, Iron ore pellets are being used by the small plants as well as big plants in India . It is natural material, that the raw material receiving from the iron ore mines in this material 20% to 25% of powder (i.e, 0 – 5 mm) is available. Some plants of the mining ore is being used by the ARC Furnaces. Some small plants using the same are facing some problems. By utilizing the ore powder, we can get kiln coating & ring formation also. But, for removing the same, we have to stop the Rotary kiln, once, from 60 to 90 days. Not only that, certain precautions, like separation of unburned coal, separation of unburned pallets from the Sponge Iron, material received from the kiln, before dispatch. In the present circumstances, they are using injet coal, coal lumps, coal chips,& lime stone may be used as fuel in Rotary Kiln. Still ore (i.e., 0.5mm) is not being used higher quantities.
This technology may be used in every plant, from 50 TPD plant to such a major plant’s. Without facing any problem Iron Ore may be used. By this technology we need not use injet coal / coal lumps / chips & lime stone in the raw material and also no need of separation after receiving from kiln. By this technology 20% to 25% ore of wastage powder from mines may be used, so that the cost of Fuel & production cost will be decreased.
Lakhs of tones deposits of iron ore is available in Indian iron ore mines, like Karnataka, NMDC, Madhya Pradesh and Goa . Out of which 40 – 50% is being used and out of the rest of the some is being got exported to the other countries like, China , Japan , Germany etc. By this technology 80% to 90% of ore powder (0 – 5mm) material may be used by small or major plants without any problems.
This opinion is being expressed after keen observation on this technology, since 2 years. Interested persons may contact for more details & information to the below Email address.
Email ID: raghuvamsi2007@yahoo.co.in, rvit_2007@yahoo.com
Thanking you,
I.V.SUBBA RAO
RAGHUVAMSI TECHNOLOGIES
Ho.No.14-5-11.
OPP.BATCHU SRI DEVI HOUSE
SHIVALAYAM STREET
PEDDAPURAM
PIN:-533 437
ANDHARA PREDESH
INDIA-533437.
MOB:-09490188826
PLEASE SEE THE FALLOWING MAILS WHICH I HAHE RECEIVED ABOUT OF OUR TECHNOLOGY
THIS MY ARTICLE.
Dear Mr Subba Rao
I hope you are able to see this image of the piece.
Tim Smith
Ed
Postal Address: Dr Tim Smith, dmg world media,
Westgate House, 2nd Floor, 120-130 Station Rd,
Redhill, Surrey, RH1 1ET, UK
Registered address:
dmg world media (uk) ltd
Registered Office Equitable House, Lyon Road,
Harrow, HA1 2EW, UK
Registered in England and Wales: Company Number 2246951
VAT No. GB 494 1614 35
From:
“emil h geus” Add to Address Book
To:
“‘iv subbarao’”
Subject:
AW: Advenced New Technology for Iron Ore Pelletization ( FOR DRI / SPONGE IRON)
Date:
Tue, 4 Dec 2007 06:59:44 +0100
Top of Form
Bottom of Form
Good morning,
Thank you for the follow-up.
We are discussing your technology with our client.
Once finished we will revert.
Best regards,
Emil H. Geus
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emil h geus wrote:
Sir:
Please send more information and details about the process you have developed.
Thank you and best regards,
Emil H. Geus
cme Commodities & Minerals Enterprise
FW: Advaced New Technology for Iron Ore Pelletization
Date:
Thu, 8 Nov 2007 09:00:20 +0200
From:
“Archibald, Archie DJ” Add to Address Book
To:
rvit_2007@yahoo.com
Top of Form
Bottom of Form
Good Day
I received the attached mail from you via SAISI and need some clarification on the process.
At ArcelorMittal South Africa we have 4 rotary kilns producing DRI using lump ore, coal and dolomite.
Would this process be suitable for this type of operation?
Do you use a pellet or a briquette? If a pellet, how is this produced with ore with a top size of 6 mm? Is this not too coarse? Does the -6mm ore have to be pulverized before the pellet can be made?
Is the reductant – coal in our case – incorporated in the pellet/briquette?
If so, can sufficient coal be incorporated so that no other blown-in coal or fed coal is required?
Is the desulphurizing agent – dolomite in our case – incorporated in the pellet/briquette? If so, how is the absorbed Sulphur removed after reduction? If it is not removed the Sulphur will end up in the Electric Arc Furnaces together with the DRI.
Do you have web site or brochure with more details of the process? Please send more detailed information.
Regards
Archie
DJ “Archie” Archibald | Project Manager Technology COE
ArcelorMittal South Africa
Technology COE | Corporate Office
PO Box 2 , PP 80701 , Vanderbijlpark, 1900
T+27 (0)16 889 2459 | F+27 (0)16 889 2390 | M+27 (0)83 468 1050
”
Subject:
RE: New Technology of Iron Ore Pelletization for Sponge Iron
Date:
Sun, 4 Nov 2007 10:38:48 +0300
From:
“Sheikh Usman” Add to Address Book
To:
“iv subbarao”
CC:
“Tariq Barlas” , “Sudarshan Singh” , “Mohammad Shamsuddin”
Top of Form
Bottom of Form
Dear Mr. Subba Rao,
We received the information from you. Your Pelletization process is being reviewed by our group technical team. We will come back to you, once we decided to go for it.
Best regards,
Sheikh Usman
Subject:
New Technology of Iron Ore Pelletization for Sponge Iron
Date:
Sun, 19 Aug 2007 12:26:23 +0300
From:
“Sheikh Usman” Add to Address Book
To:
rvit_2007@yahoo.com
CC:
“Tariq Barlas” , “Sudarshan Singh” , “Mohammad Shamsuddin”
Top of Form
Bottom of Form
Dear Mr. Subba Rao,
This refers to our telephonic discussion today, regarding NEW PELLETIZATION TECHNOLOGY OF IRON ORE. We are interested to visit your pilot plant Please send us more information about this technology.
1) what will be the maximum capacity of the plant
2) production cost
3) % fines generation
4) source of energy to heat the green pellets
5) total area required
Best regards,
Sheikh Usman
Al-Tuwairqi Group of Companies
P O Box-7600
Dammam, Saudi Arabia
Mob: 00966 503854675
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Date:
Mon, 05 Nov 2007 15:53:28 +0530
From:
“Editor Steel Guru” Add to Address Book
To:
“iv subbarao”
Subject:
Re: I have developed new technology I am waiting for some financial assistance support
Top of Form
Bottom of Form
Dear Mr Subbarao
I have good news that one of the medium size steel makers is willing to invest in this technology
I explained to them that this technology is already working at a steel plant in Karnataka
It is therefore suggested that you get the details of their plant head or the technical guy, so that they can ascertain about the feasibility from him or even hire him
Best Regards
Nishith
Subject:
New technology for iron ore pelletization
Date:
Mon, 29 Oct 2007 15:04:03 +0200
From:
“Isaac Joffe” Add to Address Book
To:
“I.V.Subbarao”
Top of Form
Bottom of Form
Your e-mail has been handed to me by Keith Campbell.
I understand that you have developed a new method of palletizing iron ore fines. At present we sieve our incoming ore and dispose of the fines. This is expensive and wasteful.
Please let me have further details of your process so that we can decide whether to pursue this matter with you. It would also be useful to have some cost information. We produce 120 tons of DRI per day.
Thank you.
I.W.Joffe
Technical Director
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Paras goyal”sales@devkisteel.com> Add to Address Book
To:
raghuvamsi2007@yahoo.co.in
CC:
rvit_2007@yahoo.com
Subject:
SPONGE IRON PLANT
Date:
Thu, 6 Dec 2007 08:02:14 +0300
Top of Form
Bottom of Form
Dear Mr. Subba Rao,
We have received your reference through ‘Steel Times International’ Magazine.
We are the largest steel producers in East & Central Africa, based in Nairobi-Kenya since last 14 years, We manufacture all kind of steel products including Billets,Ingots, finished materials like RI Bars,Angle,Sections etc ( pls refer our website at http://www.devkisteel.com/ for more information ).
Since, the scrap availablity here in this part is very low and whatever scrap is available are of very low quality, we are forced to import the scrap, but now we would like to have a permanant solution in shape of putting our own Sponge Iron Plant in Kenya .
After the reserch of 2 years almost, we found some ‘Hematite’ Iron ore at some places of kenya but, this Ore is attracking Magnet as well, may be because of FEO contain, but Our Mines & Geology Lab. certified this ore as Hematite and this thing inspire us to move further.
We therefore, invite your views and your expert comments on this issue, Please find enclosed herewith the attach sample report of the Iron ore for your kind perusal.
We look forward to join hands with you if, this ore is workable, we would also like you to erect a plant for us in near future.
Regards,
DeVki
Paras Goyal
Manager ( Sales/Purchase)
Devki Steel Mills Ltd
P O Box 33319-00600, KMC junction Mombasa Highway Athi River Nairobi, Kenya
http://in.f575.mail.yahoo.com/ym/Compose?To=sales@devkisteel.com
http://www.devkisteel.com/
tel:
fax:
mobile:
Skype ID:
+2544522816
+254-4522820
+254726555291
parasgg1973
Always have my latest info
Want a signature like this?
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Dear Mr Subba Rao
I hope you are able to see this image of the piece.
Tim Smith
Ed
Postal Address: Dr Tim Smith, dmg world media,
Westgate House, 2nd Floor, 120-130 Station Rd,
Redhill, Surrey, RH1 1ET, UK
Registered address:
dmg world media ( uk ) ltd
Registered Office Equitable House, Lyon Road,
Harrow, HA1 2EW, UK
Registered in England and Wales: Company Number 2246951
VAT No. GB 494 1614 35
——————————————————————————————————————
Subject:
Advanced New iron ore pellitization Technology
Date:
Mon, 12 Nov 2007 08:22:03 +0200
From:
“Archibald, Archie DJ” Add to Address Book
To:
rvit_2007@yahoo.com
Top of Form
Bottom of Form
Good day
Thanks for the quick response.
Unfortunately our firewall prevents any message larger than 10 mB being transferred.
Can you break the message down into smaller sections and resend.
Regards
Archie
DJ “Archie” Archibald | Project Manager Technology COE
ArcelorMittal South Africa
Technology COE | Corporate Office
PO Box 2 , PP 80701 , Vanderbijlpark, 1900
T+27 (0)16 889 2459 | F+27 (0)16 889 2390 | M+27 (0)83 468 1050
“There are 10 kinds of people in this world – those who understand binary and those who don’t.”
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Dear Mr. IV Subba Rao,
Thanks for your email response. Yes, I am aware of the difficulty in discussing proprietary information. At one time I was head of Midrex Legal and licensing group and we had to ask almost everyone to sign a secrecy agreement before we could ask them out for dinner.
My questions are related to use of your product in steel making, as steel makers have a tendency to not like added materials as they interfere with the quality of the melt. It is perhaps obvious to me that you may be pelletizing (-) 6mm material with some sort of binder that is proprietary, reducing the pellets in the rotary kiln and magnetically separating the char after cooling.
If you are successfully pelletizing unground materials for feed to the rotary kiln, then I congradulate you and we will see what we can do, not only in India.
Please let me know if you are patenting the process and if you intend to patent in other countries. This should be your first priority.
Mr. Kittur and his colleagues will be able to evaluate all of this.
You will need to look at a method of transportation to protect the material product from re-oxidizing during transport. I have developed and patented such a technology for DRI. Let me know if interested.
REGARDS
Thomas J. Coyne, Jr.
President
T.C.Inc. (an international engineering and project development firm)
26363 S. Tucker Rd.
Estacada, Oregon 97023 USA
Phone: 503-630-6759, Cell: 503-459-3752
Fax: 503-630-6759
Email: tcinc002@aol.com
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Dear Mr. Subbarao,
Ref to the mail reply.. dated 21/12/2007-(Steel Rolling mills Ltd)
Happy new year
This is shameem again,sorry for the late reply,sir we are in keen interest to setup the plant of this kind means briquetting of iron ore to produce sponge iron,gone through your technology broucher and it helped a lot also we are here with further more questions to clear out our queries that is…….
1)Full detail of the entire production process……..????
2)Quantity of electric power required for this plant…..???
3)Does it allow for electricity generation..???
Needs your kind assistance and suggestions to develop this plan…..
Thanks and reagrds
M. MOHAMED SHAMEEM
STEEL ROLLING MILLS LTD.
ALAM GROUP OF COMPANIES
PLOT NO. 86 & 90
5TH STREET, INDUSTRIAL AREA
P.O.BOX 4641
KAMPALA
Phone No.: +256 414 234000/01
Fax No. : +256 414 234301
website : http://www.alam-group.com
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Dear Sir:
Can send me more details on the Iron Ore pelletization on small scale technology
Thamks.
Amdilah
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Dear Mr. I.V.Subba Rao,
Further to my previous mail, please clarify the following:
1. What is the binder?
2. What is the post pelletisation treatment for stabilization, if any?
3. If binder is used, is it a proprietary compound?
4. Can the final product be directly used in a BF or only as raw material for a sponge iron plant?
Kind regards,
Tapan Patnaik
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From: Mfesteel@aol.com
Date: Mon, 28 Jan 2008 07:25:46 EST
Subject: Sponge Iron Plant
To: Send an Instant Message raghuvamsi2007@yahoo.co.in
CC: rvit_2007@yahoo.com, Metalfer@aol.com
Dear Sir,
Our company Metalfer Steel Mill is looking at various technologies and possibilities to produce viable feed for our EAF from the iron ore deposit that we have here in Serbia. The deposit is not big (only couple of million MT) but it is good quality magnetite iron ore.
We have read about your new technology for producing sponge iron from fines and would like to learn more about the process. Could you give us some information about it and about your work on this so far? There might be good possibility for our future co-operation.
Best regards,
Branko Zecevic
Metalfer Steel Mill d.o.o.
Sremska Mitrovica
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From: ssitindia@ssit.com.cn
To: “ivsubbarao”
Subject: Re: Thanks for your cooperation in NEW DELHI ON 05.03.08 (NEW TECHNOLOGY OF IRON ORE PELLETZATION)
Date: Mon, 10 Mar 2008 12:15:54 +0800
Dear Mr.Rao
Thank you very much for your email message.
As we have discussed in Delhi, if it’s possible, we would like to take you as our agent for marketing our pelletization technology in India, of course, you will enjoy your commission after we get the order from the comtomer introduced by you.
If you get the chance to visit Kolkata, you are welcome to my office for further detailed discussion.
Best regards,
Calson John
chaina
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Date: Tue, 25 Mar 2008 11:10:57 +0530
From: “UTPAL BHATTACHARYA”
Yahoo! DomainKeys has confirmed that this message was sent by gmail.com. Learn more
To: rvit_2007@yahoo.com
Subject: Pellet Plant Marketing
CC: mengqinghai@ssit.com.cn, “ssitindia@ssit.com.cn”
Dear Mr.Subba Rao
Thanks for your mail.After having a careful look,we would like to opine as follows.
1.As Mr.Calson John would be available only after April 15,you are requested to let us know your convenient date & time after April 15 for a meeting at our office in Kolkata.We would then decide on the meeting date as per mutual convenience.
2.For proper understanding,we would appreciate to receive the following at the earliest.
a.Company Profile
b.Brief Introduction on your Pellet Technology
c.Indian References
We look forward to a mutually rewarding business relationship.
Rgds
Utpal Bhattacharya
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On
Tue,
25/3/08,
Sanjay
Kumar
wrote:
From: Sanjay Kumar
Subject: Steel Project of Shaym Steel Industries Limited,Kolkata
To: raghuvamsi2007@yahoo.co.in
Cc: lalit@shyamsteel.com
Date: Tuesday, 25 March, 2008, 4:37 PM
Dear Mr. Subba Rao,
We have received your leaflet showing new technology for Iron Ore Pelletization and in turn Sponge Iron. After going through the leaflet, we were very much impressed with your innovative idea.
Our company, “Shyam Steel Industries Limited” is in steel business from last 50 years. Under the expansion and backward integration
plan, this company is going to put up two Integrated Steel Plant of having capacity of 0.6 MMTPA and 1.2 MMTPA at two different site locations respectively in the state of West Bengal. We are trying to get Iron Ore Mines as well as Coal Blocks in West Bengal and in neighboring States like Orissa, Jharkhand, and Chhatisgarh also for captive uses for Iron Making and Power.
We are already having DRI units and TMT bar Production facilities and our current production is approximately 0.6 Million Metric Ton
of TMT bar.
As explained above we are in the expansion phase and insearch ofnew and viable technology to produce cost effective steel. In cthisregard, we request you to make a visit to us so that we can discuss in detail about your new technology. Kindly confirm the date of visit in advance so that we will make ourselves free from other routine work and will discuss in detail
with you.
With warm regards
Sanjay Kumar
Vice President (Projects)
SHYAM STEEL INDUSTRIES LIMITED,
“SHYAM TOWER”