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Steady Manufacturers

  4 min 21 sec to read

--By Suraksha Adhikari
 
Rajesh Agrawal Director, RMC
 Rajesh Agrawal
Director, RMC
Established in 1993, Rajesh Metal Crafts Ltd (RMC) has been a familiar name in the steel and manufacturing business. Initially established as Rajesh Hardware Company, it only imported steel from Japan, Korea and other countries. But with the increase in manufacturing activities in the country, the partners of Rajesh Hardware Company decided to enter the metal business themselves and established RMC. 
 
Named after the Company Director, the venture began as a family business which commenced with the concept of constructing paint packing steel drums with an initial investment of Rs 5 million. With a widening scope for metal business in Nepal over the years, RMC has been expanding business accordingly and is considered as one of the best manufacture service providers in Nepal today.
 
“We had no experience in the manufacturing industry but were confident that the business will surely succeed in time and as per expectations, business expanded with the rising living standards of people,” said Director of RMC, Rajesh Agrawal.
 
Explaining the initial phase, Agrawal said, “There was no concept of industrialisation during the initial years. Now the country is moving forward in this aspect. Though the Maoist problem had created hindrance mid-way, it has been improving now.”
 
Initially focused on local traders only, RMC also began to export steel to India. Forty per cent of the annual turnover that the company registers today is earned through exports. RMC cement has also recently started exporting from Nepal and is the first company in Nepal to do so.
 
The company has been providing quality products to its consumers including MS black pipe, GI Pipe, Galvanised Corrugated Sheets, GI Sheets, CR sheets and Colour Coated Sheets.
 
Having 150 dealers all over the country, the company faced a couple of hurdles on the way to success. “The Maoist problem and political instability are the biggest hindrances to the growth of the company,” states Agrawal. Along with this, Agrawal believes that power outage has also created a lot of problems in the production of manufacturing materials.
 
Focusing on positive aspects, Agrawal highlights the growth of consumerism in recent years. “With the growth of various aspects of the economy, the affordability of consumers has been increasing. With this, consumerism in steel has also been increasing.”
 
“In villages, people who had thatched roof houses are slowly transforming to steel sheets with a rise in their living standards,” he said.
 
The per capita steel consumption of Nepal is 30kg per person which is one of the lowest in the world. “A stable political condition in the country can boost the steel market,” Agrawal added, speaking about the high scope of steel consumption here. 
 
RMC has been a consistent brand for the last 15 years.  Talking about market shares, Agwaral said that it is 50 per cent in black pipes, 25 percent in CR sheets and 20 percent in GI pipes. “We have aimed to increase exports with value addition to products by forward and backward integration,” he stated. 
 
Having started with around 15 employees only, the company now has 480 employees hired. The RMC group also has investments in H&B Development Bank and Prudential Insurance Company.
 
Talking about support from the government Agrawal said, “The government has provided tax free provisions for our exports.” Full time electricity to all industries would be appreciated but the government is not in the condition to fulfill such requirements. We should take some steps ourselves to solve this problem, “he added.
 
Considering the Jagadamba Company in the Pipe industry and Hulas Steels and Arati Steels in GI Sheets as major competitors, the company is well on its own track to provide quality products to consumers with an annual turnover of Rs 5 billion, according to Agrawal. 
 
As a part of its promotional campaign and advertisement, the company has been disseminating information through Agrawal Television Commercials, Print advertisements, audio advertisement in FM and scratch coupon schemes for consumers. 
 
“Fulfilling corporate social responsibility, we have installed water tanks in the villages of the employees of the company, and have been providing free medical treatment for the families of our workers,” Agrawal said.  
 
With plans to construct a clinker-based cement industry in Palpa, the company now aims to produce clinkers in Nepal itself – a product which was thus far only imported from India.  

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