Hisar Metal Industries Ltd.

CMP = 198

Hisar Metal Industries was incorporated in the year 1991 and located in the state of Haryana, 160 km from New Delhi, Hisar is popularly known as the ‘Stainless Steel City of India’.

Hisar Metal Industries Limited (HMIL) is engaged in the business of manufacturing cold rolled stainless steel strips, stainless steel tubes & pipes, high precision, ultra-thin (up to 0.08mm) Strips. These Stainless Steel are 200, 300, 400 Series, and Duplex Grades with a production capacity of ~22000 TPA

The company has 2 Nos. of 6 Hi-Cold Rolling Mills, 3 Nos. of 4 Hi-Cold Rolling Mills, 1 No 20Hi Cold Rolling Mill and 10 Tubes Mills. The company has successfully commissioned its prestigious project of 20Hi Foil Mill for ultra thin material during the year and commenced commercial production w.e.f. 21st March, 2024. The company has immense capability to keep pace with the growing requirement of the industry. 

The company is utilising state-of-the-art-technology and high precision machinery to meet highest industry standards with dimensional accuracy, excellent flatness, and smooth surface finish. Hisar metal follow the stringent quality control and pursuing dynamic Research & Development to meet demanding high standards. Backed by a dedicated, skilled technical workforce and a flair to excel in providing services made it possible for Hisar Metal to stand out as one of the leading suppliers of high-quality Stainless Steel Strips to the domestic as well as overseas customers.

Stainless steels: recycled for lasting value

https://youtu.be/DD9iY-NbhFs

Stainless Steel, since its first cast in the year 1913, has come a long way. Today, Stainless Steel the versatile metal is widely used not only by the heavy industries but practically by all small and medium industries that manufacture our day to day utility products, be it cooking utensils or high precision electronic gadgetry. The demand base of the Indian stainless steel industry is second to the textile industry in terms of sheer magnitude. No doubt Stainless Steel is called - the versatile metal, because of its numerous applications and extraordinary properties.

Stainless steel: alloyed for lasting value

https://youtu.be/l4Z1UVWm3DE

Stainless Steel Range

Each one of the grades is grouped into one of three main stainless steel families. These families are named after their metallurgical microstructure. The three groups are Austenitic, Ferritic & Martensitic.

Stainless Steel Characteristics

Stainless Steel is not a single specific material but a group of steels containing a minimum of 11% chromium with or without varying addition of nickel, molybdenum, titanium and other elements. Stainless steel has emerged as a metal of choice due to its diverse applications. Stainless steel (SS) is used in architecture, building and construction, automobiles, railways, transport, process industries etc. Stainless steel due to its distinct characteristics, has an edge over carbon steel. It provides a good combination of strength, pliability, has a longer average product lifecycle and a relatively low/nil maintenance cost compared to carbon steel.

Adding nickel to stainless steel in adequate sums changes the microstructure to Austenite. 70% of commercially produced stainless steel is austenitic. The most widely recognised grade of austenitic stainless steel is 304. Globally, 304 records for over half of stainless steel consumed. A common name for 304 stainless is 18/8. This name refers to the average composition, 18% chromium and 8% nickel. Some of the features of stainless steel include excellent corrosion resistance, ductile and readily formable, excellent weldability, hygienic with excellent clean ability

Rationale

Stainless steel is a specialty metal with unique high corrosion resistance properties. Also, it is quite distinct from carbon steel. Stainless steel is environment supportive, aesthetically appealing, economical, highly sustainable, hygienic and easy to maintain. One of the unique features of this metal, is that it can be reused and recycled, making it environment friendly. Over 50% of the new stainless steel is made from re-melted scrap-metal making it a ‘Green Metal’. Stainless Steel is also dubbed as ‘Wonder Metal’ because of its distinguished characteristic like low maintenance, weld ability, aesthetic appeal, durability, low life cycle cost, good erosion and corrosion resistance. These qualities make it an ideal material for many applications for usage in various end use sectors.

Stainless steel usage due to its inherent characteristics can be a game-changer in many advanced applications that is nation’s priority areas, such as renewable energy, agriculture, dairy development, construction, health care & pharmaceutical, food processing, infrastructure related initiatives, strategic sectors like nuclear energy, defence & aerospace,  besides traditional applications in many segments including automobile, railways, transport, process industries, household goods, cutlery, etc.  National Green Hydrogen mission, which seeks to establish India as a global hub for hydrogen production and storage, will drive the demand for stainless steel.

India's per capita stainless steel consumption in 2023-24 was 3 kg, whereas the global average was 6.5 kg. The figure highlights a significant potential to increase per capita steel usage and the country’s overall stainless steel demand. Currently, the building, construction, and infrastructure sectors account for the lion's share of domestic consumption that are poised for robust growth. Stainless Steel consumption across sectors is projected to grow CAGR 8-10% to 6.56 MT from 3.43 MT currently in the next 8-10 years.

The Indian government has taken several measures to boost domestic steel consumption, particularly within the housing and infrastructure sectors. Flagship schemes such as Pradhan Mantri Awas Yojana (PMAY), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Smart Cities Mission, along with national projects such as the National Infrastructure Pipeline and Sagarmala, are driving demand across sectors. 

The Indian stainless steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. The government is backing the industry through favourable industrial reforms. Indian steel demand is expected to boost by Infrastructure & Construction development sustained by industrial, manufacturing and capital goods and be stimulated by the automotive, railways and consumer durable sectors.

AAIRA INDIA  have collaborated with Hisar Metal to produce best quality innovative products in the field of plumbing services and introduced Stainless Steel Water Pipes and Fittings, to solve problems of leakage, seepage and unhealthy water flow supplied due to poor quality materials used in manufacturing pipes and fittings for plumbing applications.

The combined expertise of both companies will ensures to stay ahead in the stainless steel plumbing industry, providing solutions that address  client's changing demands.

https://instapressfit.com/Insta-Pressfit-Cateloug.pdf

https://youtu.be/nP1hllkIJvM

The strategic location of the company in Hisar provides several benefits in manufacturing stainless steel products i.e market, machine, material and manpower. For domestic stainless steel customers 'Hisar' is most preferred destination and it become brand name for stainless steel.

Conclusion

The potential of Indian market to grow from the current per capita consumption of 3 kg of stainless steel to the global standards of 6.5 kg is enormous considering the vast application in the fast growing sectors in India that includes large housing and infrastructure projects, defence, nuclear, energy generation , kitchens and consumer segment. India has shown the fastest CAGR of 8-9% for stainless steel demand over last few decades which is highest among other global markets. The wide range of application and the India’s consumption requirements will help stainless steel to grow exponentially in the coming years and to contribute to the economic growth of this country.

Hisar Metal is micro-cap company with sizeable sales around 250 crores. It has lot growth potential due to very bright future of stainless steel segment. Recent meltdown in steel prices has given good opportunity for investment.  Hisar Metal Industries stock at cmp Rs 198 is excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation.