Alam Steel to start operations in Sri Lanka soon
By Cheranka Mendis
Alam Steel, one of the oldest steel distributors in the Gulf with its name among the top 20 largest steel dealers in Gulf Corporation Council (GCC), has plans to launch its business in Sri Lanka with an initial investment of US$ 4 million. Expected to start within a few months, the ground work for the project is now complete.
Chairman of the Group Shyam Bhatia was in Sri Lanka last week to further explore business opportunities in the country and to check on the progress of the business, which would be set up as a joint venture program with Aknalirs Holdings Pvt. Ltd.
Here Bhatia shares some of his views on the business and his passion for cricket:
Q: Could you tell us a bit about the company and its operations?
A: Alam Steel Group was established some 30 years ago in Dubai. We deal with all types of steel and we are one of the leaders in the region. We have been among the 20th biggest steel dealers in GCC countries. Under Alam Steel Ltd., we stock and distribute steel and cement to major construction, engineering and fabrication firms in the region. We maintain a sizeable inventory of all steel products in over two million square feet of logistics facilities around the region. We use our extensive supplier network to procure quality products from around the world.
Alam Steel Industries or ASI processes reinforcement bars in a 20,000 square meter facility located in the Dubai Investment Park. It is one of the largest factories of its kind with an annual capacity of over 500,000 tons. We also have a joint venture project with leading global steel firm Macsteel through which we have a set up a steel service centre that processes plates and sections for the oil and gas, dredging, quarrying, yellow goods and steel fabrication sector.
Q: We hear that you want to set up shop here in Sri Lanka?
A: Yes, I have been visiting Sri Lanka for a long time on business, pleasure and many times for cricket as well since I am very involved in the game. I have always had the feel that this country has a great future and that it was only a matter of time. After the war ended the country has to improve and it certainly has. For investors, earlier you come the better you are and this is what I am doing here. This is part of our expansion drive. We have gone to Qatar, Saudi Arabia and now we want to come to Sri Lanka.
Q: How much will you invest and what sort of operation will take place here?
A: We want to first start our trading activities and then get into industry here. The plan is to expand our full steel industry in Sri Lanka. We have processing and value addition units in Dubai, which we want to start here. We also want to put up a factory where we can tailor make steel requirement for contractors which no one is doing here yet and which we feel have a lot of potential. We will also probably put small factories for small scale steel items here. We hope to set this up in a couple of months.
Q: What sort of employment creation are you looking at for locals?
A: Since we are still looking at setting up business, a proper figure cannot be mentioned. However we will not get people down from abroad to run the Sri Lankan operation. I believe there is good talent here and see no use of bringing people from outside. Sri Lankans are as intelligent as Indians, what is required is Government infrastructure and support.
Q: How easy has it been setting up business here?
A: So far it has been an easy run. The more I expand my business here I will learn of the exact situation here. So far it has been good. Paperwork was done easily and there have been no delays. This is also thanks to our local partners, Aknalirs Holdings, which have managed that part for us.
Q: You said the country has potential; where do you see Sri Lanka in the next few years?
A: The future depends on the Government’s policies. It depends on how free they want the trade to be, the free hand given to people for business and the facilities given for the people. I am sure people will be keen to come here and set up shop as the labour is quite reasonable here; almost cheap one could say. So everything will depend on the policies of the Government. It is the same in any country. The general investor sentiment towards Sri Lanka is very good. Many people from Dubai I have spoken to have Sri Lanka in their future plans.
Q: What is the progress made by the steel industry in Sri Lanka?
A: A lot of progress is required to bring the Sri Lankan steel industry up to date. This is just the beginning for them. The Government should give facilities to private sector to conduct business and support private enterprise allowing them to grow. Necessary policies should be implemented and material such as electricity and land must be offered at concessionary rates.
Q: You’re an Indian living in Dubai; what made you set up the business there?
A: I have been living in Dubai for 45 years now. I started my career in insurance in Dubai and from there I went in to the business. At that time Dubai was nothing in the world; just a desert. But I had a gut feeling that one day Dubai would come up and I was right. Now I have the same feeling about Sri Lanka; I hope I got it right again.
However, when I started, I did not have enough funds to do it on my own. I went into a working partnership with my friends. From then on I have progressed slowly and I have not looked back since then. I was 35 years old when I started; I feel I started too late. What I had was confidence then. Even if I did not succeed, I knew I could get another job. What I did not want was to live in regret saying I never tried.
Q: You are an avid fan of cricket. How did this come about?
A: As a young boy I played a lot of cricket and at the age of 18 I played first class cricket. Then I had to come to Dubai for a job and at that time (the early ’70s) there was no money for cricket. Even here it was only Indians and Asians playing cricket and I was among the better ones, so through that I was able to build contacts to help my business. Then I decided I must give back to the game. I wrote a cricket book ‘Portraits of the Game’ for charity. This has become very popular.
Q: Was this when you created your charity organisation?
A: Yes, I then created a charity called Shyam Bhatia Cricket for Care. I give cricket kits to underprivileged children worldwide. It is not just to India because I am an Indian or to UAE because I live there. I have done it twice in Sri Lanka, Afghanistan, Pakistan, India, South Africa, Zimbabwe, etc. I believe children are the future and I want to give them an honest, decent life through sports to make them good citizens. I have supported more than 1,000 schools over the years.
Q: How has the sport helped you in your business?
A: The main lesson I learnt through cricket and keep telling others also is to bat with a straight bat. If you play with a straight bat, you will not lose your wicket and you are playing with honesty. In life, if you lead your life with a straight bat with honesty you will never go wrong. You will score a century but you will not get out. Instead you will progress slowly and gradually. Through the game you also learn integrity, dignity, courage, sportsmanship and a desire to become good in what you do.
Q: You recently won the Mother Teresa Award. Can you tell us about that?
A: I won this for supporting underprivileged children. This was held in April at the Rabindranath Tagore Hall and when I went to receive the award I felt blessed. There were 500/600 people and you could fell the positive energy there. It was a great feeling winning the award. I think I am truly blessed when I think of what I have achieved so far in life. Among so many awards I have received, this is easily the biggest for me.
Q: You were named as UAE’s most influential Asians. How hard have you worked to come to this stage?
A: Well it is not about hard work, it is about honest work. You must bat straight and if you don’t trample on other people’s toes and be helpful, you will do fine in life. The world is very small these days. People recognise you for what you do and the more good things you do, better it will be.
Q: Since cricket has influenced your life in such a big manner, who would you say is the best cricketer so far?
A: In the Sri Lankan context, I would say Arjuna Ranatunga. I feel that he is the face of cricket for Sri Lanka. His aggressive nature and support to team players helped Sri Lanka win the World Cup in 1996. Today, the Sri Lankan team is much better than the 1996 team. There is positivism in the team, even though they did not win the semi finals. Sanga and Mahela are great players but Murali was the greatest in my view. However Arjuna was a great leader, and sometimes that is what is important.
Look at Dohni, he is not a good cricketer but a great captain. For Sri Lanka after Arjuna it is Murali as he is a fantastic and a dedicated cricketer. But these cricketers must work with youngsters. They should go to the villagers, cricket centres and schools and support them by giving them a pep talk and encouraging them.
Q: Any advice you would give to the youth who wants to become entrepreneurs?
A: Advice is simple: be honest with yourself. Be positive and have confidence. Don’t be afraid to take calculated risks. Don’t look to make a quick buck – that only happens in dreams. I have reached this position after working for years. I tell my son who is in the business and who is now the CEO of the company the same thing, things take time to build, you’ve just got to wait.
