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Jul, 09 2018

REINVENTING THE PRESENT REDEFINING THE FUTURE

Kamdhenu Group, with its wide product portfolio that includes TMT bars, structural steel, colour-coated sheets and pre-engineering buildings, among others, believes in laying the most timeless foundations of any structure.

Kamdhenu Limited is a well-established flagship company operating in the business of steel manufacturing since 1995. In order to bring more transparency and dynamism to the operations of the company, Kamdhenu Limited ventured into something that no other steel company had done so far – the franchisee business model. This step was taken to involve more and more regional steel units spread across the vast stretch of the country by encouraging their participation and support in technology transfer and upgradation of their facilities for better productivity levels.

The company’s primary expertise lies in making TMT bars and its best known products is the Kamdhenu SS 10000 TMT Bar, which is a premium product with double rib, double strength and double safety suitable for highly seismic zones. “We are mainly engaged in the manufacturing, marketing, branding and distribution of steel and paints,” informs CMD Satish Kumar Agarwal, adding, “Kamdhenu is the first company in India which converted a commodity into a brand.”

THE FRANCHISE ROUTE

We started franchising in 2001. The idea was to produce Kamdhenu brand products under our supervision, with quality parameters, for nourishing the product as per our market demand,” he shares. Today, the company has 77 franchise units and a retail dealer network of 6,500. Besides, it has 200 distributors, who invest in purchasing the products and provide credit to the retailers.

“Under the model, we first undertake a study of the market trends and identify companies manufacturing steel products, following which we offer them our brand’s strength and assistance in technology, quality consistency and marketing. This model has advantages for both – the franchise units have the leverage to enjoy our brand’s strong market network while we earn royalty to be associated with the franchisee,” he says.

FUTURE PROSPECTS

The growing infrastructure industry in India, government schemes like ‘Housing for All by 2022’ and the ‘Pradhan Mantri Awas Yojana’, are expected to create an additional demand for TMT bars. The company, which has a capacity of producing 25 lakh tons of steel, is planning to double it in five years through the franchise model. “The prospects for growth are indeed very bright,” he says.

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