Our Robust Business Model

Gap-focused: The experience to identify gaps and productise with clear focus on higher valueaddition, strengthening return on employed capital.

Value-creation: The ability to invest in a growing scale of processing capacities, coupled with specialisation-driven efficiencies, has translated into enhanced value for the partner company.

Value-addition: The focus on building our competence in the processing of billets and HR coils to create a family of progressively valueadded products. Within the HR coils segment, the Company produced pipes and poles; within pipes, the Company graduated to the black and galvanised varieties (the highest value-added segment). The Company processed billets to manufacture structural and TMT bars; the Company processed structural to produce towers (the apex of the product pyramid).

Leverage synergies: The progressive leverage of our competence in the management of core raw materials (HR coils and billets) to enhance procurement economies and manufacture various downstream products. The management of HR coils has been directed at competent conversion

into the sequential manufacture of pipes, poles and black/galvanised varieties with progressive value-addition. The management of billets has translated into the efficient manufacture of structural and towers on the one hand and the manufacture of TMT bars on the other.

Deleverage: The selective de-leverage of the Balance Sheet on the one hand and grow its business through net worth on the other.

Controlled growth: The focus on controlled but sustainable growth as opposed to reporting sharp but erratic year-on-year growth. Within this controlled growth – which would still be higher than the sectoral growth average – the Company will continue to focus on enhancing value through an increased proportion of revenues derived from proprietary products as well as the addition of value-added products.

Environment consciousness: The investment in environment-protecting equipment and processes: the HCl acid regeneration facility (2500 kg per hour) eliminated effluents discharge while the recycled water is used for gardening within the factory premises.

At BMW, we are proud of having countered the downtrend in the steel sector across the last decade. In doing so, we emerged among a handful of steel companies in India to have consistently reported profits. That this outperformance happened when most steel companies in India were unprofitable validates the robustness of our business model.

This outperformance was the result of a conscious preference for enduring virtues: the need to prioritise business sustainability over a fleeting spike in profitability; the need for controlled growth over high unsustainable profit movement; a commitment to serve customers over a singular profit focus; a sustained culture of fiscal austerity and a preference to run a growing business around a smaller Balance Sheet.

BMW’s multi-decadal steel conversion experience and cutting-edge infrastructural platform have resulted in a sustainable competitive advantage. The conversion business has proved relatively cycle-neutral as the company works for one large partner. We have widened our presence across a large number of marketplace customers.

We provide distributors with various incentives; we conduct factory visits to enhance their confidence in our brand. Looking ahead, we intend to address the growing needs of our principal through proactive capacity expansion.

BMW entered the proprietary business in 2016 (entailing the manufacture and marketing of products under its own brand). The proprietary business comprises the sale of structural, TMT, pipes, towers and HR coils.

The segment offers products to B2B and B2C segments. Going ahead, we intend to leverage our popular brand and post strong growth.

BMW entered the proprietary business in 2016 (entailing the manufacture and marketing of products under its own brand). The proprietary business comprises the sale of structural, TMT, pipes, towers and HR coils.

The segment offers products to B2B and B2C segments. Going ahead, we intend to leverage our popular brand and post strong growth.