Steel,Sustainability and Success

A second-generation entrepreneur, Govind Goyal, Director of Kalika Steel, feels privileged to be leading a well-established company. He brings a fresh perspective and is focused on combining tradition with innovation through inclusive approaches. In an exclusive interview with Corporate Citizen, Govind discussed the future of the steel industry, highlighting the importance of adapting to new technologies and innovation. He emphasised that with leadership comes the responsibility to not only drive growth but also maintain sustainability and ethical practices in the steel sector

Corporate Citizen: Tell us a bit about yourself…

Govind Goyal: I feel privileged and honoured to be born into the Goyal family. Growing up surrounded by inspirational individuals, I never lacked motivation, which set the foundation for my educational journey. I hold both a bachelor's and a master's degree in engineering. In 2016, I joined the family business, Kalika Steel, and under my leadership, we increased our production capacity to 0.4 million tons per annum. Over the past two decades, Kalika Steel has grown significantly, establishing itself as a well-recognised steel manufacturer in India, with core values centred around integrity and quality. Recently, I have also taken on responsibilities in marketing and sales, to drive further growth.

CC: How do you perceive the process of passing down the baton from one generation to the next in business leadership?

One should understand that everything comes at a cost - every opportunity, effort, responsibility or inheritance. While I am grateful to be a second generation entrepreneur in a well-established business, inheriting leadership comes with high expectations and responsibilities. Maintaining the legacy while growing and evolving is challenging, especially when the standards set by the founders are already high. Thankfully, I have great mentors to guide me.

Transitioning leadership from one generation to the next is delicate. It means learning from the wisdom of the previous generation while embracing new strategies and innovation. This balance requires dedication, humility and adaptability. My goal is to ensure Kalika Steel thrives by staying true to its core values, while preparing for future growth.

"India’s rise as the second-largest steel producer is driven by strong domestic demand, government initiatives like “Make in India” and significant infrastructure development"

-Govind Goyal

CC: What challenges did you face when transitioning into leadership?

The transition into leadership came with its own set of challenges—difficult, but not insurmountable. Older employees were comfortable with my predecessors due to their long-established bonds. As a young leader, gaining their trust wasn’t easy. I had to demonstrate my loyalty to the company’s values while also introducing fresh perspectives. Additionally, learning the complexities of the steel industry was a steep curve.

Balancing respect for the company’s longstanding practices with the need for innovation became crucial in ensuring a smooth transition. Ultimately, the biggest challenge was discovering my own leadership style—one that resonated with myself and the company’s policies. This shift was not about stepping into someone else’s shoes but about carving my own path in a meaningful way.

CC: How do you balance maintaining traditional practices while introducing modern innovations in the steel industry?

Our company was built on the solid foundation established by our predecessors, and staying true to these core values and traditional practices is of utmost importance to me. At the same time, I recognise the need for modern innovations to ensure the company remains competitive. Therefore, I’ve carefully incorporated advanced technologies such as automation and data analytics without compromising our essential values.

This balanced approach allows us to enhance efficiency, sustainability, and overall performance while preserving the craftsmanship that defines our brand. Ultimately, it’s about evolving with the times while remaining firmly rooted in the values that shaped us.

CC: What was the most important lesson that was passed down to you?

The value of integrity, and I hold it close to my heart. In business, maintaining trust with employees, partners and customers is paramount. I've learned that no matter how much the industry evolves, staying honest is great for the foundation’s success. Integrity ensures trust, fosters strong relationships, and enhances the reputation of a business, which is essential for sustainable growth and success.

CC: This is a fast-paced industry. What as per you is the driving force behind the steel manufacturing industry?

Without a doubt, innovation and adaptability are key elements driving industry progress. As demand grows and market conditions shift, adopting new technologies, enhancing efficiency, and meeting sustainability goals keep industries competitive and relevant. Continuous improvement in processes and products is vital for staying ahead in today’s fast-paced environment. Companies that embrace this mindset are better positioned to evolve, adapt, and lead in their respective fields, fostering growth and long-term success.

CC: Walk us through the evolution of the steel manufacturing industry. What do you see as the biggest challenges currently faced by the steel industry?

The steel manufacturing industry has evolved from labour-intensive processes to highly automated and efficient systems driven by technology. Over the years, advancements in production techniques, automation and sustainability have transformed the industry.

Today, the biggest challenges are meeting environmental standards, managing rising raw material costs, and addressing the demand for energy-efficient, sustainable steel production. Balancing these while remaining competitive in a global market, is the key challenge for the industry moving forward.

CC: India is now the second-largest steel producer in the world. What do you think are the key drivers behind India’s rise in global steel production, and what challenges does the country still face in maintaining this growth?

India’s rise as the second-largest steel producer is driven by strong domestic demand, government initiatives like “Make in India,” and significant infrastructure development. The availability of raw materials and a skilled workforce also play a crucial role.

However, challenges like fluctuating raw material costs, energy inefficiency, and environmental concerns remain. To maintain growth, the industry must focus on sustainability and modernisation.

Technology is key to this evolution. The industry is incorporating automation, AIdriven process optimisation, and advanced data analytics for better efficiency. We are into complete recycling of steel. Also, we have zero environmental discharge throughout our production process. This gives us an edge over other manufacturers. Induction melting furnaces have become more energy efficient over the years, and use of technology along with best production practices, is I think the key.

CC: The National Steel Policy 2017 aims to achieve 300 million tonnes of steel production by 2030. Do you believe this target is achievable, and what needs to happen in terms of investments and capacity building?

The target of producing 300 million tonnes of steel production by 2030 under the National Steel Policy, is ambitious but achievable. To meet this goal, substantial investments in infrastructure, modernisation, and sustainable technologies are crucial. Capacity building will also require upgrading existing facilities, improving energy efficiency, and strengthening supply chains.

Additionally, government support through favourable policies, along with private sector innovation, will be essential to drive growth and ensure that the industry can meet domestic and global demands. Even today the infrastructure projects favour the steel from major producers like Tata, JSW, etc. However, the electric furnace sector still lags behind, although contributing to more than 50% of the nation’s steel production. Policies giving all manufacturers an even platform would definitely boost steel production in India.

CREATING A SUSTAINABLE FUTURE

Kalika Steel, Jalna hosted ‘Kreate’, a student competition in September, 2024 aiming to inspire and empower young minds. Thousands of students from 200 colleges across Maharashtra flocked to participate and showcase their innovative ideas through futuristic designs under the theme “Life in Steel.” The winning team was BNCA College, Pune. Govind Goyal, Director of Kalika Steel, was amazed to see how students used their steel TMT bars to create impressive and sustainable models.

CC: How do you view the collaborations between global steel giants like ArcelorMittal and Indian entities in terms of advancing India's capabilities in producing high-grade and specialty steels?

The partnership between global steel giants and Indian firms enriches the steel sector by facilitating access to advanced technologies, expertise, and global manufacturing practices. This results in the production of high-quality steels, which are crucial for industries like automotive, construction and defence, while aligning with international standards.

CC: How do you address environmental concerns associated with steel production, and what sustainability initiatives has your company implemented?

We are committed to eco-friendly steel production and have chosen the recycling route over the traditional iron ore method since our inception. Numerous studies confirm that carbon emissions from the iron ore route are more than twice as high as those from recycling. However, we don't stop there. We continuously strive to align our operations with environmental goals and have successfully achieved zero discharge into the environment. Given the global threat of climate change, it is the responsibility of all steel manufacturers to adopt sustainable practices. While there isn't a universally agreed upon definition for green steel, we believe the first step is reducing carbon footprints and embracing environmentally friendly practices.

CC: What’s the future of this industry?

The future of the steel industry lies in innovation and sustainability. As demand for high-grade and eco-friendly steel rises, the focus will be on reducing carbon footprints, improving energy efficiency, and adopting new technologies to stay competitive on a global scale.

CC: You are passionate about flying, tell us a bit about that.

Flying has always been a passion of mine. It offers a unique sense of freedom and perspective, allowing me to see the world from a different angle. Flying is more than just a hobby for me; it’s my way of escaping the noise of daily life. Up in the air, everything becomes clearer—the rush of deadlines, meetings and business decisions fade away, and I feel a sense of calm.

CC: What is your philosophy of life?

My philosophy of life is deeply rooted in Vedanta philosophy, which has been passed down through the centuries by the great saints of India. This philosophy focuses on nature of reality, the self, and the ultimate purpose of life. Incidentally, my core values that inspire me are truth, integrity, and the pursuit of a higher cause. I try to imbibe these principles in both my personal life and work. I believe that life’s purpose should extend beyond mere acquisition and enjoyment. If you can make the lives of those around you better, then I think you are on the right path.