### **Overview** **SG Mart Ltd** is a rapidly growing **B2B platform for construction and industrial materials**, focused on revolutionizing the fragmented steel and building materials supply chain in India. Originally incorporated as *Kintech Renewables Limited*, the company rebranded in **October 2023** to pivot into B2B trading and distribution of construction materials. It has since launched a multi-vertical business model, integrating **metal trading, value-added service centers, downstream steel distribution, and renewable energy infrastructure** – positioning itself as a one-stop solution provider across the industrial and construction ecosystem. The company operates under a scalable, asset-light, high-velocity business model with strong promoter backing, leveraging decades of group-level expertise in steel, distribution networks, and relationships with major steel producers. --- ### **Business Model & Strategy** SG Mart has structured its operations across **four core business verticals**: 1. **B2B Metal Trading** (Flat & Long Steel, Billets, Zinc Ingots) 2. **Service Center Operations** (Steel Processing & Distribution) 3. **Downstream Steel Distribution** (TMT Bars, Light Structurals, Fixtures) 4. **Renewable Energy Structures** (Solar Mounting Systems – "Sun Steel" / "APL Apollo SunSteel") The company’s strategy is built on: - Bridging the gap between **large steel producers** and **fragmented end-users**. - Leveraging **group-level relationships** with top steel mills (e.g., JSW, SAIL, Jindal) and EPC/IPP players. - Establishing **decentralized, organized service centers** in Tier II/III cities to reduce logistics costs and improve delivery speed. - Driving **scale and profitability** through volume-based trading and value-added processing. It targets an **integrated, pan-India supply chain** with high inventory turnover, low working capital cycles, and differentiated per-tonne margin economics. --- ### **Recent Developments (Q2 FY26 – Nov 2025)** #### **1. Renewable Structures Business: Fast-Tracking Growth** - Launched in **Q2 FY26 (Apr–Jun 2025)**, this vertical now contributes **4% of total revenue**. - Generated an **order book of ₹260 crores**, with visibility into the next **2–3 quarters**. - Expected to **double its revenue contribution by Q3 FY26**. - Initial production of **open-section solar mounting structures** from coated steel, processed at existing service centers. - **50,000 tons of order visibility** secured from large IPPs for solar utility projects. - Projects **₹400–500 crores in revenue in FY26**, rising to **₹550–600 crores** with new orders. #### **2. Product & Capacity Expansion in Renewables** - Plans to launch **10–15 new products** over the next 12–15 months, including: - Cable trays - Residential solar struts - Slotted angles - These products will be produced **without additional CAPEX on land or factories**, using **existing service center infrastructure**. - New products will leverage SG Mart’s **established downstream distribution network**, expanding reach beyond OEMs to direct-to-contractors. #### **3. Distribution & Service Center Growth** - **Downstream distribution** contributed **16–17% of revenue**, with stable margins and continuous product additions. - **Distribution product revenue** on track to reach **₹1,000 crores annually by FY26**. - **TMT bar business transitioned to a royalty model**, with ₹500/ton royalty and growing volumes (39,000 tons in Q1 vs. 33,000 in Q4). #### **4. Service Center Network Expansion** - **11 operational service centers** as of Nov 2025 (Pune, Bangalore, Dujana, Raipur, Ghaziabad, Dubai, Indore, Ahmedabad, and 3 leased locations). - **Processing capacity:** - **Metro cities**: 8,000–12,000 tons/month - **Non-metro**: 5,000 tons/month - Plans to add **5–7 new centers annually**, targeting **20–25 centers by FY27**. - **Leased model** supports capital-light scaling; new centers in **Jaipur, Kanpur, Patna, Siliguri, Bhubaneswar** under development. --- ### **Market Opportunity & Segment Highlights** | Segment | TAM (Annual) | Target Volume/Capacity | EBITDA Margin | |--------|--------------|-------------------------|----------------| | **Flat Steel** | 25 MT (~₹1.25 Trillion) | 637,000 tons in FY25 | 2–3% (Trading) | | **Steel Billets** | 10 MT (~₹400 Billion) | — | 2–3% | | **Zinc Ingots** | 10,000 T (~₹2.4 Billion) | — | — | | **Service Centers (Processing)** | 6 MT (~₹312 Billion) | 386,000 tons in FY25 | 4–5% | | **Stock & Sell Steel** | 7 MT (~₹364 Billion) | — | 4–5% | | **Renewables – Solar Structures** | 800,000 T (~₹52 BN domestic) + 100,000 T (~₹6.5 BN export) | 15,000 T/month by H2FY26 | 2–4% | - **Target monthly capacity in solar processing**: **15,000 tons by H2 FY26**. - **CAPEX for solar expansion**: capped at **₹50–60 crores** over 3 years, using existing infrastructure. - **Major customers**: **Solar EPCs, IPPs, OEMs, real estate developers, auto/white goods OEMs**. --- ### **Operational & Financial Performance (FY25 & FY26 YTD)** | Metric | FY25 | Q1 FY26 | Q2 FY26 | |-------|------|--------|--------| | **B2B Trading Volume** | 637,000 tons | 70,000 tons | 111,000 tons | | **Service Center Processing** | 386,000 tons | 121,000 tons | 163,000 tons | | **Total Revenue (FY25)** | ₹2,683 crores | — | — | | **PAT (FY25)** | ₹61 crores (2.27% margin) | — | — | | **Q1 FY25 Revenue** | ₹1,144 crores | — | — | | **EBITDA Target (FY26)** | — | ₹200 crores (Run rate: ₹55 cr/qtr) | On track | - Monthly B2B trading volume ramped to **>50,000 tons** in FY25, with expectations to **double** post-new capacity rollout. - **EBITDA per tonne**: ~₹1,000 (insulated from steel price volatility due to per-tonne margin model). --- ### **Customer & Partner Network** - **2,328+ B2B customers** (EPCs, RE developers, OEMs, distributors, fabricators). - **402+ vendors**, including 4 of India’s top 6 steel producers (e.g., JSW, SAIL, NMDC). - **Pan-India distribution** across 24+ states. - Presence in **UAE** (Dubai service center) to tap global trade opportunities. - Leveraging **APL Apollo Group’s 30-year-old distribution network** for downstream reach and demand visibility (~₹4 trillion potential). --- ### **Competitive Advantages** 1. **Unmatched Steel Mill Access**: Supply agreements with top producers, **20x higher trading capacity** than largest competitor. 2. **Asset-Light Scalability**: Leverages existing land, sheds, and group relationships to launch new verticals (e.g., solar structures) with minimal CAPEX. 3. **Blended Margin Model**: Combines low-margin (1.5–2%) high-volume trading with high-margin (4–5%) value-added processing and solar ROCE upside. 4. **Organized Network in Disorganized Market**: Addresses lack of large, integrated distributors in India’s steel and construction material sectors. 5. **Speed-to-Market**: 21-month platform build; 5 service centers operational within a year. --- ### **Future Roadmap** - **Phase I**: Strengthen B2B trading and service center network (in progress). - **Phase II**: Expand into broader **building materials** (tiles, cement, paint) and **PEB components** (purlins, deck sheets). - **Global Expansion**: Explore export markets (Middle East, Africa). - **Sustainability Focus**: Cement position in **green infrastructure** via solar mounting systems. ---