Shyam Sundar Agarwal, from a family well-versed in the flour mill industry, made a daring decision to venture into the steel business in 1990. Despite his family's reservations and the challenges ahead, Agarwal was determined to diversify his business interests.
"I didn’t know anything about steel manufacture, but I was keen to learn," says Agarwal, recalling the early days of his career.
His bold decision in 1992 to establish Premium Ferro Alloys in Binanipuram, Kochi, turned out to be a game-changer.
Though Agarwal had no experience in steel production. His only advantage was his sharp business instinct, backed by the central government's liberalized policy on steel manufacturing and a booming construction sector.
To learn the ropes, Agarwal joined the workforce at Autocast in Cherthala, Alappuzha, where he worked as a daily wager, gaining hands-on knowledge of steel manufacturing.
With insights gained from this experience and the unwavering support of his family, he set up his factory in Kochi. In the beginning, the company produced steel ingots, but after upgrading its technology, Premium Ferro switched to manufacturing TMT bars, which quickly became popular in the industry.
Premium Ferro Alloys flourished amid an industry struggling with challenges like high raw material prices and fierce competition from Chinese companies.
Agarwal’s unwavering commitment to quality set his company apart. His motto—“We are Premium in quality and price”—resonated in everything they did. This dedication earned the company recognition from the United Nations Development Program, which named it Kerala's model company for adopting energy-saving and emission-reducing measures.
Under Agarwal’s leadership, Premium Ferro reduced energy consumption by 30% and earned a stellar reputation for product excellence.
While Premium Ferro rose to prominence, Agarwal’s journey was not devoid of hardships. He had previously achieved great success in the flour mill industry.
After completing his graduation, Agarwal joined his family’s flour mill business, with his first venture being a flour mill in Mangalore in 1973. Over the years, he expanded his business to Salem and Vijayawada, eventually establishing Shree Rahul Flour Mills in Kochi in 1987.
Agarwal’s decision to enter Kerala's market was strategic, as the state’s demand for his flour products was huge. Despite limited resources during India’s License Raj period, Agarwal's business acumen helped him overcome challenges like the cement shortage and equipment procurement
Though Agarwal faced several challenges—including political and labour disputes—he always navigated them with resilience.
During the construction of his first mill, Agarwal was attacked by a local goon. “It was a miracle that the injury to my head was not fatal,” he says, describing the frightening incident.
However, Agarwal did not allow violence to deter him from pursuing his goals. He sought police help and continued his work, proving his unshakeable spirit in the face of adversity.
When Agarwal decided to venture into steel manufacturing, he knew it was a risk but saw an opportunity. He understood that the steel industry was ripe for growth due to the construction boom.
Despite the steep learning curve, Agarwal leveraged his previous business experience and applied his methodical approach.
Premium Ferro Alloys, once a small operation, soon became a key player in Kerala’s steel market, overcoming both market and internal challenges with its commitment to quality.
While other companies faced a decline, Agarwal’s company remained resilient. Premium Ferro’s focus on quality and efficient management enabled it to weather economic downturns, with Agarwal adjusting production based on market conditions.
He also managed to address internal conflicts, including loan repayment issues with Kerala Finance Corporation and director disputes, swiftly and without disrupting operations.
Agarwal has also contributed significantly to social welfare. He is an active member of the Jan Kalyan Society, which supports various social causes, including healthcare and education.
He continues to mentor aspiring entrepreneurs and is a part of multiple trade organizations aiming to improve the business environment.
Through his involvement, Agarwal ensures that his success benefits others, paving the way for future generations.
Agarwal’s son Rahul, the executive director of Premium Ferro Alloys and managing partner of Shree Rahul Flour Mills, has embraced his father's ethos and is taking the company forward. Rahul manages the export business, focusing on expanding operations in Dubai.
Under his leadership, the company is adopting new-age technologies, continuing the legacy of innovation and quality that Agarwal instilled.
