KSRM is capable of meeting 15-20% of the country's steel demand
Shahriar Jahan Rahat, deputy managing director at KSRM, shared the journey and progress of the steel manufacturer company and discussed the challenges and prospects of the country’s steel industry during an interview with The Business Standard
What is the story of KSRM's journey in the steel sector?
The steel industry is our family business, initiated by my grandfather. After the death of my grandfather Mohammad Kabir Ahmed in 1983, my father Mohammad Shahjahan took charge of the family enterprise. Despite being a college student at that time, he bore the immense family responsibility with determination, courage and a strong drive for progress.
The steel business began in 1984 with the acquisition of a ship. Initially, the production relied on manual methods, but today, it has evolved into a state-of-the-art steel factory known as KSRM. This transformation is a result of unwavering courage, a relentless desire to move forward, and a dedicated focus on development.
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How much of the country's steel demand is met by KSRM?
KSRM is committed to being an active partner in building the country's infrastructure and building a developed nation through the steel industry. Currently, KSRM has the capability to meet 15-20% of the country's total steel demand.
Our state-of-the-art steel mill manufactures quality rods using Europe's "Promini" technology. With an annual production capacity of eight lakh tonnes, this factory can produce 2,500-3,000 tonnes of rods per day.
What is KSRM's contribution to the country's megaprojects?
KSRM prides itself on leading the way in the steel industry by successfully supplying rods to mega projects. It has supplied quality rods for the main construction of almost all the mega projects in modern Bangladesh, including Padma Bridge, Metro Rail, Bangabandhu Tunnel and Payra Power Station. KSRM was the first company to get unconditional permission to supply rods for the Padma Bridge project.
How many factories and how much manpower does KSRM have in the steel sector?
KSRM is a composite steel plant with two melting plants for making billets from scrap and an automatic rolling mill for making rods from billets. The company has achieved its current position through the hard work, talent and dedication of about 5,000 people.
What problems did KSRM have to face to reach this position today?
Success is achieved by moving forward and overcoming challenges. My father built the institution with this belief, and we strive to uphold it. KSRM has encountered numerous challenges during its journey, including financial crises, insufficient land, a shortage of skilled manpower, natural disasters and bureaucratic complications.
Apart from rods, what other products does KSRM produce?
Besides rods, we are also capable of manufacturing angles, plain bars, square bars and wares. In addition to the steel industry, we have various other businesses, including ocean-going shipping lines, cement factories, ship-breaking yards, ship-building yards, oxygen plants and power plants, mostly related to the steel industry.
What problems is the steel sector facing in the prevailing global economic crises?
As an import-dependent industry, production is directly impacted by disruptions in raw material imports caused by the dollar crisis and import restrictions. Additionally, various crises such as gas and electricity shortages, inflation and government policies which contribute to a significant increase in production costs putting additional pressure on consumers.
What are the prospects for the steel sector?
Bangladesh is a country with tremendous potential. The rapid development of the country's infrastructure through megaprojects over the past decade is unprecedented. As the purchasing power of the people increases and awareness of using quality construction materials grows, the use of steel produced by the private sector is also rising, extending beyond cities and reaching villages. Consequently, the demand for steel and its diversified uses is expected to increase steadily in the coming decades.
What are KSRM's future plans?
The KSRM steel industry has gained the trust of people through this long journey. There are plans to increase production capacity through environmental and technological improvements at the factory. Efforts are ongoing to make forward and backward linkages more efficient and cost-effective. It is expected that KSRM will leave the borders of the country and go outside the country.
What are the differences between KSRM rods and others?
KSRM has been supplying rods for 39 years, maintaining standards. It stands out from others as it can deliver the product on time through consistent and strict quality control at every stage of production. The principles of fair pricing and partnership with customers help us move forward with pride.
Tell us about the CSR activities of KSRM.
KSRM's Corporate Social Responsibility (CSR) activities are vast and extensive. But our campaign is very limited. As a family, we are used to standing by people. Numerous mosques, madrassas, orphanages, schools, colleges and houses are being constructed across the country. Moreover, cooperation for the downtrodden people who suffer from various natural calamities, especially floods and winters, is always ongoing.
KSRM has always been involved in and assisted various organisations in the development of technology. During Covid-19, the distribution of medical supplies to various hospitals and financial assistance to the affected people were KSRM's main focus.
