Dinesh Rathi MD Icon Steel

TOWARDS A SPARKLING FUTURE

Greetings of the Diwali season to you and your family. This is traditionally a time to open a new chapter of accounting, to improve our office and living spaces. It is also a time to take a look towards the future – its opportunities and challenges.

At Icon Steel, we are always working to establish a new standard. Our mission is to improve our products and process, and deliver higher value to our customers, build even better relationships with all our associates, professional network, and customers.

What might the new look like? What will be the shape of construction over the coming 15 years? Urbanisation is a huge reality – many of the technological, medical, and lifestyle amenities are mainly accessible in cities. Many more cities – megacities, smart cities, satellite townships will come up. Since there are so many aspects of energy, waste management, water, and safety – there will be more and more automation for overseeing the management of all these aspects. Thus, smart buildings will be the new norm.

Today, from being only material suppliers, we have to think about partnering the structural engineers and architects, because the smart buildings are quite complex and there is a long-term implication of how it can be eco-friendly,  which portions can be reused, and of lowering the structure’s yearly electricity consumption.

ICON REFERS TO A LONG TERM REPUTATION

A New York artist had memorably said, ‘In the future, everyone will be famous for 15 minutes’.

He had meant to point out that achieving brief fame is not difficult, but maintaining it is another matter. When we think of continuing achievement and lasting reputation, we use the term ‘icon’.

When you look back at the well-known and illustrious career of Mr Amitabh Bachhan, which spans several decades, we are speaking of a true icon. Voice-over, singing, playback, acting, producing - he’s done it all. He has won many Filmfare awards, and the National Award as well, besides numerous prizes and honours, Indian and overseas. We can imagine the abilities, the energy, and the dedication that goes into sustaining such a multifaceted career.

We identify with this Icon, and his accepting brand ambassadorship for Icon Steels is a proud privilege. Over the decades, we built a recognition in the market for our manufacture of quality TMT Bars for construction. Upgrading our products, improving our processes, adding customer value through added services, and expanding our presence – growing in brand strength year after year.  

CHALLENGES COULD CHANGE, RELATIONSHIPS HAVE TO ENDURE

Just as in showbiz, it takes many capabilities to establish an iconic brand in Construction Steel. Like a cine talent has to adapt to the changes in screenplay and production in each decade, the Construction Steel category also has varied its composition, the microstructure of the TMT bar, and the yield strength in response to new specifications and standards.

At Icon Steels, we have the pioneering experience of introducing the Tempcore process from Germany in Thermo Mechanical treatment in this part of the country. Since then, we have been nurturing our valued relationships with builders, architects, structural engineers, contractors, masons, and the distributors to learn continuously from their experience and feedback.

On his part, icon Amitabh has established a powerful rapport with TV audiences through his signature style and grace. His persona is expressed very differently from his great hits which portrayed a volatile youth, an action hero, an earnest well-wisher, a social crusader and many more.

ICON KEEPS UP THE GOODWILL OVER YEARS

What matters most is how through our work, we reinforce our social bonds with others – our associates, our target audience, and stand for a firm set of values. This is how a lasting iconic presence can be clearly identified.

As Icon Steels looks to expand its presence in the northern states, and carry its trailblazing new TMT bar, the DS 500 Suraksha into new territories - our brand ambassador’s charisma will help in accelerating the market acceptance. This product combines a higher strength with quake-resistant ductility to offer a superior level of safety in all structures across seismic zone categories. 

Higher standards, higher ambition - my mantra for this decade

Thirty years down the line, and we are establishing a quite new brand - it's a unique opportunity. But this time around, there's a lot of experience backing it, many lessons we have learned in our journey.

Icon Steels. A word that is easy to say, easy to recall. A term popularised by mobile screens and computers.

And a popular word in showbiz too. In the world of urban landscapes, it refers to a distinctive building that represents the present day in its styling.

Our extensive network of associations with TMT distributors has ensured early recognition for the brand and its identity. But it's more than a new brand we want to launch in TMT, we want to be the brand that's bearing the new standard.

That's the ambition behind our pathbreaking Icon DS 500 Suraksha TMT bar.

It links our brand to innovation, to a new standard of strength and performance, and with a more versatile product. With climate change and more environmental challenges, as people are conscious about earthquake protection, they want to know about TMT steel with a superior combination of ductility and tensile strength.

We seized the opportunity to develop a unique solution in Icon DS 500 Suraksha which also offers better workability on site.

Equally important in building a brand are customer support, digital touchpoints, a sound environment policy, and an ongoing concern for employees and society. At Icon Steels, we continue with many industry firsts in the region which the trade recognises as my initiatives over the years. We also reach out and connect with professionals –  structural engineers, metallurgists, construction project managers - through various means. As a brand, we not only supply you with quality steel for your construction, our endeavour is to help in your safe and timely project completion. To this end, we have competent and efficient Cut-and-Bend services, and also supply factory-made stirrups that are ready to install. You can have our Technician team visit your site in their mobile van for consultation and guidance.

Icon Steels believes in a winning product backed by all that it takes to secure customer loyalty. As a brand, we care about that. We want lasting relationships with our customers and value their suggestions. In the same way, we listen keenly to various technical experts, and to inputs from experienced Distributors.

COOPERATION IS ALWAYS CONSTRUCTIVE - thoughts on October 2. Pranaams and greetings of Gandhiji Jayanti.

Father of the Nation inspires us all from our early days when many of us read about him in school books, saw his statues in public parks, saw his books in libraries, perhaps watched the film, 'Gandhi' (which had won an Oscar for best costume design for an Indian) which leaves a lasting impression.  Later in life, as working professionals or people in business, what can we learn from Gandhiji as a practical leader on a large scale?   Gandhiji showed the way by leading from the front. He walked the mile, visited far-flung areas, interacted at the grassroot level, and did not do HQ-stationed guidance, a common mistake among senior company executives.  Gandhiji was personally familiar with many regions/provinces in terms of the people, the conditions, and the local perspective because of his extensive and continuous first-hand contact. These days, management gurus speak of co-creation and collaboration between a marketer and the client to obtain the best performance of a product/solution. Gandhiji had always emphasised the full participation of the greatest number of people, inviting their involvement and contribution, however big or small.  In our construction steel industry too, many roles are instrumental - there are specifiers - technical experts, members of certifying bodies, researchers, structural engineers, architects, faculty in materials science and others.   Then there are decision makers - builders, construction management professionals, project managers, bureaucrats etc.   On the implementation side - we have technicians, steel masons, construction labour, our site support staff, dealer staff etc.  

There is much merit in a schematic and structured understanding of any subject. And knowledge in any line of work has to updated with information on new technologies and methods. I came upon this site and page recently that I’d like to share. There is a perspective on `smart construction’ here, and it throws light on this term that is gaining much popularity lately. As many new technologies emerge, such as sensors which will be part of your building, you will be able to monitor many things and make it a more efficently managed facility.  https://www.designingbuildings.co.uk/wiki/Smart_construction

Another thing that changes from time to time in any industry is how the products and services are taken to the customers.

It’s the weekend!  Many people want the weekend to feel longer and the regular work day to feel shorter. This is the case whether you live and work in a big metro, or in a smaller town. The difference may be less in a farming village. Imagine a weekend of seven days - it even seems  unthinkable!!

But when someone with 25 years in business,a highly successful entrepreneur and industry leader, says such a thing - we have to give it some attention, I think.  That someone is from Brazil, and his name is Ricardo Semler. His brand is Semco. When Semler used this fascinating term “7-Day Weekend” , this catchy idea is used to convey that there is more pleasure possible in working, and that work and the rest of our life can be balanced in a way we have more success in both.

In Mr.Semler’s case, this is not some fanciful concept. He has implemented in his companies and businesses to make sure that all employees can show more initiative at work and not have bored routines during the work week.

It can happen in a case where the employee feels satisfied and worthy regarding their work responsibilities and feel adequately rewarded for their commitment to the business’s main goals. At Semco, this concept and the culture around it have kept the company growing by over one-third each year.

There is more democracy and less authority or control. This cultural difference have helped Semco because employees largely manage themselves and helped the company to reach hundreds of millions of dollars in annual turnover. And the employees enjoy flexible working hours. This has made Semler believe that his success with these ideas can be followed by others also and made him write a book `The Seven-Day Weekend’ which is about how self-management by employees is not only possible, it reduces wastage of time, gets more work done, and compete better.

Moral of the story is that happier employees will make the business succeed. Semler’s message is that focusing on your employee happiness can help the company achieve more growth than your competitor firms. His proof is his company, Semco, which has done very well over 20 years in areas like customer satisfaction and innovation. In revenue terms, his company grew by six times in six years time.

The word `design’ has got a deeper meaning these days for marketers. Earlier, it was seen as only related to the product - product has a design, the packaging has a design, its communication has a design. Then came the world of branding and experience design - we design the retail environment, we design the customer support system. Today, design is a way or an approach to developing solutions. It is an exploration to see which process needs to be improved to deliver better benefit to users.  

                                                                                                                                ( image credit: Clarity.fm)

But what are its special characteristics?  If you see the extent to which brands like Apple and Nike do user studies and user tests, you come to know that design thinking is human-centric and customer-oriented. Earlier product development did not involve the various people in the market so much, it was seen as a technical discipline. Today, marketers, influencers, traders and customers all offer their input into the process of product development. It is a participative process for more stakeholders and draws upon the collective wisdom because the products are created for people, those people must have a say and share their expectations and dreams with us.

( image credit: InsideOut )

Design Thinking is a marriage of commerce, science and art. Art is an exercise of the imagination to sketch many possibilities. Science is the analysis of the user’s situation and requirement and is also used to build the physical product and make it work. Commerce is applied to manage costs, aim at a market segment, and to check what features a customer will pay more for. Only a scientist, a marketer or a designer achieve less on their own but when there is a culture of coming together to do Design Thinking, then it becomes possible to look for what major change can be introduced boldly by our company and our brand. The whole thing starts with a close look at the user situation. How does the customer pick up the product, use it - what are the limitations, how can the user get more value or use from it, what is feasible etc. A specific improvement is targeted as we consider it to be valuable to the customer. Once some prototypes are developed, they are tested with users and the feedback is used to carry out improvements. Other stakeholders also add ideas for the concept to be refined.

(image credit: Amazon)

What is it about a product, brand or company that simply WOWS you? Is it how efficiently the product works? The amount of effort and money saved? Is it the social responsibility the company shows through its initiatives? Is it their popularity and extent of market share you are impressed by?

Is it their R & D edge, their modern facilities?

Is it their cultural understanding and motivational imagery of their campaigns?    ( as in this Opel advertisement)

Is it the premium image and the prestige of  owning their product? Is it their guarantee of ethics towards customer, society and environment that commands your respect? Each one of us has his or her own answers or a combination of answers. It tells us why different brands command the status which they have in our minds. Let’s not forget, our choices are a reflection of us. Some of us give more weightage to technology, some of us are concerned more with the value system, and some others simply go with the leader in size and volume.

BRANDS HAVE DEVOTEES TOO!

COMING DECADE IN INDIAN STEEL

There is a focused thrust to boost steel production in India by 2025. If this proves successful to the extent expected, then it will have a major impact.

CHEAPER INPUTS, INCREASED STEEL SUPPLY

Some angles have still to be considered - China is a factor. It is expected to land up with a surplus of Scrap in the coming few years, and the resulting drop in demand would drive down material price such as that of iron ore and coking coal. Brazil and Australia will be shipping out 20% more iron ore, as per leading industry reports, because they have commissioned more capacity. The additional supply costs less and will have a downward trend in iron ore prices.

Those manufacturers without own access to raw material will gain from the availability at lower cost. At the same time, the local manufacturers who have been buying ore at lower domestic prices will not have this edge because more countries will also be getting it at cheaper rate.

Another thing to worry about is that it is far from easy to attract fresh investment in our steel sector because of perceived risk, and at the same time they are targeting more capacities by 2025, and this will depend on policy assistance from the Government for getting funding to support the capacity expansion. Investor circles view other sectors more favourably in financial terms than Steel. In India, though, what will be needed for the present is that Steel expansion requires funding as a long term infra investment. IMPACT OF FUEL COSTS

Fuel plays a key role in any medium or heavy industry. Some nations like Iran which are producing direct reduced iron by substituting natural gas in place of coking coal are in economical steel production. Now even more fuel gas is expected to be in supply. It will bring down steelmaking cost, and yet those in India expanding their blast furnace will be barking up the wrong tree. As a matter of fact, energy costs make a competitive difference in many manufacturing sectors. Global players are making geographical decision of locating their production on this basis, and also towards where their major buyers are. India’s energy sector is itself in need of strengthening. CHALLENGES GET BIGGER, RESPONSES TO GET FASTER

CREATING SPACE AT A REAL PACE

 Construction sector is at an exciting stage – it is getting more organized in response to stronger regulation. It has a huge infrastructure boom to cater to. It has extensive access to fund sources and new funding models. It is applying a variety of new technologies to build as well as manage projects. The new RERA Act will also make its impact. While we speak more often about manufacturing, I see the real estate sector as the manufacturers of usable space. It enables shelter, work space, transaction space, entertainment space and more. But for such a fundamental role, one would expect it to show a better performance. Because of a poor reputation in banking circles, the real estate sector receives only 3% of the loans from commercial banks. It is a well-known fact that many estate developers are arbitrary in managing the finances. Most of them will take your money paid up towards your project, and then buy land elsewhere for a future project of theirs. This will inevitably lead to delay in delivering your project. This is a common heartburn for customers, and banks also know all about this.

 CONSTRUCTION FINANCING  - THE CHANGES

 One way around this capital question is that the builders have managed to obtain funding from NBFCs in recent years.  Over a trillion rupees from NBFC companies has been loaned to construction companies. Some developers are paying less than 12% for this finance, while many pay between 15 and 20 percent. This is a preferred route as approvals are faster and there is more flexibility for repayment.

There is one thing to be acknowledged while we look at the scenario. While more funds need to be available and affordably for estate development, no one can deny that more regulations should be put in place and followed also.

 Real Estate (Regulation and Development) Act, 2016 addresses some of the issues. Importantly, it does not permit usage of over 30% of the advance monies collected from customers to be diverted to any other construction or land acquisition for the developer’s other projects.

The sector itself  is getting more streamlined because it attracts among the highest FDI inflow, and employs well over three crore people. A greater private investment through the new REIT ( real estate investment trust) and InvIT ( infrastructure investment trust ) also calls for more norms and transparency for protecting investors.

Another major source is the NIIF (National Investment and Infrastructure Fund) which draws upon financial sources, domestic and overseas, to invest in commercially viable infrastructure. Half of India’s construction takes place in Infrastructure sector.

Other major developments in funding Development indicated in the RERA Act are modified FDI norms, and new payback models in public-private partnership.

ANSWERING NEEDS OF THE HOUR

You may ask, are reorganization and professionalism such pressing matters?  My answer is, just look at the tremendous opportunity and activity that lies ahead both in terms of meeting basic needs for social order, as well for economic development. Let’s first look at the basic shelter need – with a shortfall of over a million affordable housing units, there is a race to build and achieve the 2022 timeline under Pradhan Mantri Awas Yojana ( 20 million houses for urban poor). The scheme provides central assistance and also provides interest subsidy for housing loans upto Rs.6 lac.

REAL ESTATE CALLS FOR REAL BRANDS

In my mind, there is  no doubt that while market conditions in Real Estate sector will fluctuate and vary, at every point it is the marketer's standing that matters. 

 Like in any other type of product, the real estate marketer has to know the differences between the different offerings within a price range, and they also should know the current availability status ( the supply situation) in the market. Needless to say, a good understanding of customer needs and attitudes is a must.  

It helps a lot when the real estate marketer carries an image of financial soundness, a track record of good judgment, and working understanding of legalities. These are the factors that make a buyer comfortable in dealing with that person. A real estate salesperson is usually required to handle a variety of complex aspects effectively.   

How has your reputation been built up? 

If there is one type of marketer who needs a great amount of credibility, I will say that it is a real estate salesperson. Due to the nature of the purchase, both the value as well as the title and the long-term angle, buyers are very particular about the personal reputation of the real estate marketer. 

People who are going to buy will believe your claims more readily if you are willingly sharing a lot of information about the projects you have sold, the testimonials from past customers etc. They also want to know who you are in your own neighbourhood - someone with a good social presence and influence is trusted better. So a marketer must focus on building his or her social participation at the local level.    Staying in occasional touch with earlier customers, even through a simple Diwali greeting, helps to get referrals. These are highly helpful because your visitor walks in with an expectancy of trust because they perceive you as a known and proven person. This is what is popularly called network or relationship building. 

Target your audience and your sales target can be reached 

You should show care in how you use address and phone number bases. For example, the data collected from visitors to a housing exhibition can be relevant. However, some marketers simply bombard everyone with the same message without any understanding. This is not only unacceptable because it is a nuisance, the company which calls in this way earns a bad name. 

If the card/mail ID was obtained in a kiosk/stall of an ultra-premium project, then do not disturb that person unless you have a premium or ultra-premium offering to discuss. Matching an offering to the right buying segment is an important capability for a real estate marketer. 

I need hardly add that popularly accessed platforms such as 99acres or magicbricks can be highly useful when the marketer has been learning from their own online experiences. These days, if you have commercial/showroom space to offer, it could be way more useful to apply your effort in a related LinkedIn group or to use Instagram/Twitter.  More information is conveyed as well as faster by these methods than in a newspaper ad.  

 When two deals are equally good, the better dealer wins! 

A simple comparison

Brands are built to last, just like civil structures. They need to be designed, they need a market space, and they need features/utilities, and they need strength to withstand the climate.

How is today's brand construction new or different?

For everything , people are googling. I mean the use of an online search engine. Perhaps you are using DuckDuckGo app on your Android or iPhone. (For more on internet search privacy, you can check https://duckduckgo.com)

To find out the location, the route, the availability, the choices, the prices, the benefits and side-effects, the track record of a person or a business, the meaning of a word, the syllabus of a university course, you name it.....

A person about to travel, or attend a university, or buy a product, or book a service is doing the first easy thing they can. They take a look at information – either on a company site, a review site, or an expert blog, or they look at magazine/journal reports and news stories where their search item has been mentioned.

Customers know that with decent search skills, they can identify what comes closest to their requirement. They are looking for help along their journey of discovery. In view of this, what we put into our brand promise must directly address our audience's needs.

Now everyone knows that modern construction uses a certain amount of Steel. And the grade to be used for a particular construction project can be advised by the structural engineer or any experienced builder.

Now the buyer is the builder/owner of the project, the influencer or a specifier of a brand choice can be a construction contractor or technical associate. It is important here to understand that it is not only the information that a Steel purchase will be made, but what matters to us is that these individuals are always updating their knowledge about some matters related to Construction.

From this, we can understand their professional concerns – how they are trying to expand their own practice and client base. What is their peer discussion group like, and what are the market, product and construction trends under discussion within the group? What are their long-term aspirations?

It is useful to put together an information base and keep it updated regularly so that we can offer really a highly relevant input to our customer or specifier. Let's say that it's like how we see in a Chartered Accountant's office : so many periodicals, manuals, and statute books. The CA counts many kinds of people as clients: businessmen, consultants, doctors, artistes etc. They know the income and investment patterns of so many people, and also some of the details about each occupation.

Similarly our marketing information base has to stay current by adding new press clippings from relevant sectors, certifications, checklists and interviews. The most ordinary but effective beginning can be made by simply setting up Google Alerts for half a dozen topics and looking at the results you receive in your mailbox every week.

Keep the story malleable – it should take the required shape

We can supply relevant information for all types of decision makers in a situation : owner, influencer, government official, dealer, specifier, the end-user/occupant and so on. This is possible if the format, length and language considerations have been already taken into account.

Keeping our brand content in an organised way, we can quickly tell which brochure, or flyer or poster, is to be presented to a person depending on whether it's a dealer point, an exhibition, or a public event where you meet that person. There are also important long-form content such as company profile, articles, white papers, videos, webinar etc. But all this will be effective only if they are distributed in the right place to the right people. Simply flooding someone will only create confusion in them.

On the one hand, we must check if we have a focused piece that answers a specific audience query, and on the other hand we should study our target audience to ensure there is a match between their need and our information efforts. If our customer wants a reliable guidance on the type of TMT bar that is best for their type of project, our communication offers a discussion on how that selection is to be made, and so sets up the stage for a product enquiry.

Include local particulars in the brand narrative

From the early days of our culture, there has been importance given to the story. The story carries much guidance along with information. If we look at the Ramayana, you realise that Ayodhya was a sizeable kingdom with a long lineage of kings and that there were famous scholar-teachers who were known across many kingdoms. We get geographical information about Mithila, Dandakaranya, Nashik, Kishkindha, all the way to Rameshwaram. We see the fraternal relations and respect among four brothers.

Sharing information about our brand is also like composing the story or narrative. When was the brand started, what was its initial response or position, how did it develop its market share, how did it expand and further its relations with customers and others, what is its most notable achievement till date, what is its place in community service.... all these are matters of human interest to people who come in touch with us.

Our focus is applied to product quality and business expansion, and yet the market is the most important part of our plans. The market must see us, understand us and recognise us. To this end, we have to present our information in appealing ways that engage them and win their trust and even admiration.

Stack the product and social values properly

The reason stories work so well is because they are very shareable. If a specifier or customer wishes to refer to our brand, they will readily recall elements from some example we shared with them, than a few points from a technical feature list we provided. Stories stay longer in our memory, are easier to refer to, and are more interesting to pass on to others.

Sometimes, our dealers tell our end-customer about some social initiative our company has taken. They display a clipping of our social campaign under their glass countertop. Customers notice this – they may also, as people, appreciate the cause. It also suggests a sense of responsibility and dependability overall about our brand. So this non-technical aspect also plays a role in building trust.