Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I began my career working with stainless steel, specializing in various forms such as niche and specialty steels, including quenched and tempered steels. This foundation established my core expertise in advanced steel materials before I transitioned to working with carbon fiber.

My experience with carbon fiber further deepened my expertise, particularly through collaborations with Italian and Russian companies. These partnerships allowed me to develop significant skills in forming alliances, managing joint ventures, and executing successful collaborations across international borders.

In addition, I have been actively involved in acquisitions, which has further contributed to my expertise. I have also worked extensively in the defense, aerospace, and nuclear industries, applying my knowledge of advanced materials in highly specialized and demanding sectors.

Overall, my core strength lies in advanced materials, particularly those intended for niche or highly specialized applications.

Q2. What market opportunities do you see emerging in the medium term, and what risks could challenge sustained growth?

There are significant opportunities emerging as industries worldwide increasingly shift towards lighter materials and high-strength solutions. This trend is evident both in this region and globally, with a growing demand for advanced, lightweight, and high-strength materials.

Key areas of growth include powder metallurgy, the production of composite materials, and the development and application of advanced high-strength steels. These represent important directions for innovation and competitiveness.

In particular, high-strength steels are a promising focus area. However, there are notable challenges, especially in India. One major challenge is the current lack of technical knowledge and industry culture to fully adopt and integrate these advanced materials. It is important to anticipate and proactively address the challenges that may arise in the coming years as these technologies are implemented.

To seize these opportunities and overcome challenges, there must be a fundamental shift in industry mindset and practices. Embracing better materials and more advanced solutions will be essential. This also extends to improving the quality of services associated with these materials.

Q3. How are customer preferences and procurement requirements evolving around sustainability, and which eco-friendly stainless steel products are gaining traction as a result?

In Europe, the introduction of CBAM has placed a strong emphasis on green materials and green steel. As a result, the entire industry—including our company—is focused on utilizing green energy and finding ways to increase the use of clean and sustainable materials.

There is a growing focus on how to maximize the use of clean and sustainable materials throughout production processes. Procurement requirements have also evolved, with customers increasingly asking about the source of electricity used in production—specifically whether it comes from fossil fuels or clean energy sources. This topic is gaining significant traction across the industry.

Another important aspect of sustainability is the inherent corrosion resistance of stainless steel. Customers are no longer just looking for basic functionality; they are now seeking materials with higher corrosion resistance to ensure longer life and durability of their systems.

Q4. From your perspective, what segments or geographies experienced the highest impact from recent insolvencies, and what are the longer-term growth consequences?

From my perspective, most recent insolvencies have occurred in the infrastructure sector, particularly among companies involved in composites and infrastructure projects. These companies are struggling due to a lack of sufficient orders, which has made it difficult for them to remain financially viable, resulting in many entering insolvency. 

Looking ahead, with significant ongoing investment in infrastructure, there is a clear need for consolidation within the sector rather than continued competition. If companies pursue collaboration and consolidation, the sector can better position itself to avoid future insolvencies.

Q5. How do you foresee the competitive landscape evolving as more players adopt decarbonization technologies, and what differentiates market leaders in this space?

Currently, nearly every company is adopting a decarbonization strategy. One of the main drivers is the need to comply with regulations like CBAM for exporters. Additionally, governments are increasingly strict about pollution, which is pushing companies to rethink their energy sources. Most companies are shifting towards alternative energy sources such as solar and wind, while also exploring comprehensive waste recycling initiatives—often referred to as 'waste-to-wealth' projects—to maximize resource efficiency. These efforts focus on reusing materials within their own production plants. In the steel sector, companies such as JSW, Jindal Stainless, MNS, and VC Energy Advanced are all actively advancing decarbonization and sustainability initiatives, with a common goal of achieving net zero emissions by 2040.

Companies that are committed to decarbonization are making conscious decisions to use alternative energy sources. This not only reduces costs, but also benefits the environment, setting these companies apart from others. In contrast, many smaller companies have yet to make meaningful progress toward sustainability goals.

Q6. Drawing on your extensive experience, which competitors do you regard as the most innovative and proactive in adopting green steel manufacturing practices? Additionally, what key elements differentiate their strategies from others in the industry?

The market leaders who pioneered this initiative were Kalyani Carpenter and Sardoha, becoming the first to announce that 100% of their production would be dedicated to green steel. They also committed to fully recycling all of their production waste.
This was followed by similar announcements from JSW, Jindal Stainless, and others in the industry.

Q7. What scenarios do you consider most disruptive to the successful scaling of green steel technologies, and what contingencies are in place?

Two of the most promising options for advancing sustainability are the use of solar energy and the utilization of Sewage Treatment Plant (STP) water. However, both of these face significant challenges due to government policies. For example, while solar power is available during the day, companies must rely on wind energy at night—but government regulations complicate this. Inter-state power transmission is allowed, but intra-state power purchases often involve high charges, making it unsustainable for many businesses.

Similarly, while industries are eager to use STP water, local governments often do not support delivery of this treated water to factory sites. As a result, companies must either incur additional costs to transport the water or, more often, the treated water goes to waste—despite its suitability for industrial processes. On one hand, these resources offer clear advantages, but on the other, restrictive government policies create barriers. For true progress, government policies need to be more supportive of sustainability and industrial recycling initiatives.

Q8. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

If I were to ask senior management a set of critical questions, they would be:

• What is the growth potential in this sector?
• How secure is your access to key raw materials?
• What steps are you taking to ensure sustainable production and a sustainable operating environment for the future?

These three questions are crucial. 

First, raw material security: Even if a company produces high-quality steel, its growth and expansion are impossible without reliable sources of coal, iron ore, and scrap. 

Second, growth potential: Assuming raw material supply is ensured, how will the company position itself for future growth? What new products or innovations will be introduced? A company cannot be sustainable with a single product offering; diversification is essential. 

Third, sustainability: Without strong commitments to green steel and sustainable production technologies, no company can expect long-term market success. It is essential for companies to work diligently toward ambitious sustainability goals.