Steely resolve: Abhishek Agrawal

There are few materials more essential to civilization than steel. A combination of iron ore and carbon, it is up to 1,000 times stronger than cast iron, a quality that has earned it the position of the most commonly used metal in the world and inserted it everywhere in our daily lives.

In India, there lies a rich history of steelmaking that dates back as far as the third century BC. Today, the country is the second-largest producer of crude steel in the world after China. Companies such as Godawari Power and Ispat have led India’s ascent to the status of a global steel powerhouse.

"I joined this company in 2008, and since 2010 I’ve headed up operations," Godawari Power and Ispat Executive Director, Abhishek Agrawal, tells The CEO Magazine. "It’s been close to 14 years now."

Perhaps the most impressive achievement of Agrawal’s 14 years is how he has transformed the company culture, which helped Godawari Power and Ispat navigate out of a difficult financial position.

"My main job initially was to make this company more systems-driven, rather than people-driven as it was previously," he says. "Everything was a bit haywire. The market was good so we were still making money, but there were massive inefficiencies because there were no systems in place. In 2016, we were actually bankrupt in terms of our accounting books."

Agrawal knew that significant change was required to protect the future profitability of the business.

"We restructured in 2017, and since then we have never looked back," he says. "I’m proud to say that Godawari Power is now debt free, and is a very professionally run company where everything is systems-driven."

Future plans

The future looks bright for Godawari Power and Ispat as it further expands its steel producing capabilities.

"We have started to expand our iron ore pellet mining capacities, which will expand from 2.7 million pellets to 4.7 million," Agrawal says. "Work has already started and should be completed in the next 15–18 months."

He estimates the total capital expenditure on this project to be up to US$130 million. Despite awaiting its completion, they already have their sights set on another impressive project.

"The approvals process is underway for a two million metric ton, US$750 million greenfield project to build a new integrated steel plant," Agrawal says. "We will break ground once we get the desired approval from the concerned authority."

Agrawal cites staying in line with environmental demands as a key challenge for Godawari Power and Ispat.

"We’ve started working on the decarbonization side," Agrawal says. "We cannot wait any longer to see what happens – it’s better to start early and become a first mover, and change with the times."

As well as working with government and other titans of Indian industry to explore the use of hydrogen across manufacturing sectors, the company has also partnered with a British-based carbon capture company.

"We are investing in the conventional steel cycle while also investing in and working with decarbonization technology, which is equally as important," Agrawal says.

Essential cooperation

When asked what makes Godawari Power and Ispat unique, Agrawal stresses how the company treats its business partners with respect and stays true to its word.

"For us a commitment is a commitment. This is a core value that has been driven down from the top management level, and we have always honored our contracts," he says. "A good relationship is much more important than making money. Money comes and goes, but a relationship built over years can be destroyed in an instant."

He remembers how suppliers helped Godawari Power and Ispat in their moment of need, keeping credit lines open to allow it to keep its operations running.

Agrawal views supplier relationships as ongoing partnerships with key collaborators, such as abrasives and silicon carbide manufacturer Grindwell Norton.

"Being in the service sector, three things are the most important to maintaining long-term relationships," he says. "The most important is constant quality, followed by on-time deliveries. Lastly, if there is an issue – which, of course, can happen – being upfront about things, and providing a solution on priority basis."

Collaborations such as these allow Godawari Power and Ispat to produce the steel that keeps the world going round, Agrawal notes.

"Money has to be secondary," he stresses. "If you keep these relationships going for many years, the trust will be there, and so will the success."