According to a report published by the Indian Brand Equity Foundation (IBEF), in FY21, India exported 9.49 MT of finished steel and until July 2022 exports of finished steel stood at 3.80 lakh MT. This is supported by the annual production of steel that is also anticipated to exceed 300 million tonnes by 2030–2031. It also reports that at present, the installed capacity of cement in India is 500 MTPA with production of 298 MTPA. In the wake of industrialization and urbanization, India is witnessing huge demand for both, facilitated by initiatives taken by the government.
Amidst the growing demand, distributors have started playing a major role in this market. But there is a challenge with regard to lack of maintenance in the quality balance of the product that ultimately leads to structural failures. This is why the industry currently needs trusted distributors who will ensure premium quality and timely delivery to clients. Akriti Sales Corporation from Gujarat is one of those distributors, which has made its mark in the market owing to the amount of trust and reliability it has to offer.
Starting off in 1999, the company has gradually expanded business and now, is not only one of the top distributors of finished steel and cement in Gujarat, but has also catered to the demands of customers all across the country. It is an ISO 9001:2008 certified company that is engaged in trading of all prominent brands of Cement, TMT Bars and Structural steel having received SE-1B rating from CRISIL and rating from Informatics Valuation and Rating.
“We are the only SME company in this sector in India rated for its performance and financial indicators by worldrenowned CRISIL with SE1B rating. In 2021-22, the group had annual sales of 95000 mt Cement, 110000 mt TMT bars, and Structural Steel with a proven track record; satisfying the needs of 1500+ clients in India,” mentions Kamal Drolia, MD, Akriti Sales Corporation.
Growth Story
Kamal Drolia can be called a veteran in this industry because even before he started the company, he was employed by Vikram cement (now Ultratech) for 13 years where he gained a lot of expertise on the operations of this industry. He had completed MBA in 1982 before joining Vikram cement (now Ultratech).
Initially, the company was only involved in cement distributorship and became one of the most recognized distributors of Gujarat in a very short period of time. With growing business and popularity, Akriti Sales Corporation then decided to expand operations to finished steel distributorship and cater to the rising demand of the nation. Having established Akriti Sales Corporation, Kamal Drolia also established Punam Sales (sister concern of ASC) in 2004 to go one step closer to his vision of becoming the end-to-end supplier of all the construction materials.
Akriti Sales Corporation has a store house which is close to 1,00,000 sq. ft. This area gives the company the chance to stock all possible finished steel products required for construction. According to the management, a client never has to look for any other supplier once they establish connection with this company. Any requirement can be complied in time and this is applicable for all kinds of products.
In the initial year of operations related to steel, the company was able to sell a little more than 100 Metric Tonnes of finished steel and as it stands, the company has sold a volume of 1.10 lakh Metric Tonnes in the last financial year. “I started out my job with only 400 rupees monthly salary and from that what I have achieved is really amazing. Akriti Sales Corporation made a total turnover of 800 crore INR in the last financial year and the success it has achieved since 1999 is really commendable and has been possible because of constant efforts of all the people working for it”, states the MD.
Assurance of Quality
The company is the one and only distributor of JSPL steel in Gujarat that stands testimony to the level of quality the company has to offer. Apart from JSPL, the company also deals in SAIL and JSW products which also have a very good name in the industry. It goes without saying that whatever material the company will deliver is quality assured and is certified by the government authorities. Apart from these, the company also deals in various kinds of industrial grade plates and especially boiler quality plates. UC, UB & WPB that are only manufactured by JSPL in India are also kept in stock by Akriti Sales Corporation.
It is because of its huge warehouse area which makes it possible for the company to keep them safely stored. “Several times we have been awarded by different companies like Best Distributor Award from SAIL, Gallant, Bharat Gaurav Puraskar by All India Achievers Foundation and numerous other awards from other companies. and others as one of the best distributors of their product in Gujarat”, says the MD.
The company has a long-term fund-based facility - Cash Credit which is IVR BB+/Stable outlook (lVR Double B Plus with Stable outlook). It has long term fund-based facility - Channel Finance which is IVR BB+/Stable outlook (lVR Double B Plus with Stable outlook). It also has a short term non fund based facility - ILC/FLC: IVR A4+ (lVR A Four Plus). Akriti Sales Corporation keeps a stock of 5000 to 6000 MT of material at its Ahmedabad warehouse. Infact, it is the only SME in this sector in India rated for its performance and financial indicators by world-renowned CRISIL with SE1B rating.
The Road Ahead
In 25 years of experience in the Cement & Steel industry, the MD has not only gained the required competence but has also gained credibility and respect from his clients. Under his leadership, the group has crossed the annual turnover of 800 crores INR and set in motion for more. In all its years of operations, the company has never failed to meet up to the clients requirements and plans to do the same in the time to come. Presently, the company is experiencing a stable phase and wants to be slow and steady in expansion. In the years to come, the company wants to increase its storage capacity in order to keep more material in stock.
It further wants to increase the number of store house and spread across all the parts of the country. “My son has recently joined the company and is preparing to take the company to the next level. We want to increase our turnovers gradually over the next few years and would like to achieve a growth of 20 percent by the next financial year. At last I would like to extend my heartfelt thanks and gratitude to my mother, my wife and all my children and not to forget TEAM AKRITI for achieving the success”, concludes the MD.
