THERMEX QST REBARS IN INDIA – Looking Back, Looking Ahead

- R. K. Markan, CMD, H&K India

Looking Back
It is indeed gratifying to note that the seed planted by Wolfgang Kluetsch and me over 20 years ago
in 1984 at Duesseldorf during the Metec Exhibition by way of a special presentation for the Indian
steel industry stalwarts has now blossomed, with strong roots, into a full grown tree that bears fruit.
It was a humble beginning and has been a long struggle against many odds, but worth every effort
that has gone into it alongwith all the agony and pain that was experienced in the first 15 years.
Such was the determination that in spite many false starts, stumbling blocks and few stumbles we
did not fall. We were indeed fortunate to have had the full support and backing of our collaborator,
Franz Tamm, during the initial testing and trying times. Today, when I meet Wolfgang and Franz in
Germany we invariably talk about the long struggle and look back with pride and satisfaction that
we have each contributed to successfully executing what we set out to do in 1984 – to give India a
steel reinforcing bar that future generations will thank us for. At that time, it was strange for me as
an Indian to realise the simple truth that no where in the world, certainly not in Europe, were CTD
bars being used. The CTD bar usage had stopped in the early seventies whereas in India we are
using it even today! The blessing in disguise is that steel consumption in the country stands at the
level of an under-developed country; so not much harm has really been done.

A lot of credit for bringing THERMEX to India must also go to SAIL who gave us the initial break
by opting for this technology at their merchant mill in Durgapur Steel Plant followed soon after at
Bhilai. Effortless commissioning at both Durgapur and Bhilai only went to confirm our claim that
THERMEX is a user friendly system that gives consistent results – especially when producing
Grade 500 rebars.

The introduction at SAIL plants was over ten years ago and just the start. The real benefit to the
nation would only accrue if the mills in the secondary sector followed the lead given by SAIL and
switched over to Thermex in place of the CTD bars being made by them. That was easier said than
done – such was the stranglehold of CTD in the country.

Undoing the practices of three decades in just a year or two was a near impossibility. It took us a
good six years but finally in 2000 we did manage the breakthrough when 5 mills, located in East,
North and West India, agreed to go in for the Licensed Thermex technology. Thereafter, it has been
a quiet but steady progress. Gradually, Thermex bars became available in the market from both the
main and secondary producers.

Here, the main advantage to the user civil industry was the availability of, for the first time in the
country, rebars that had properties that reflected the needs as per the geological structure of India –
55% falling under the category of seismic zones 3, 4 & 5. I have been of the firm belief that the
minimum elongation of only 14.5% specified in IS codes for seismic grade rebar was a very low
value. For India we needed, in my opinion, rebars of more ductility on account of the large areas of
high seismic hazards. Hence we evolved internal Thermex norms that the producers had to follow -
in line with global standards. The importance of Stress Ratio (UTS/YS) was emphasised and
regularly monitored. The target values of stress ratio were fixed at levels of 1.15 to 1.30 for all
grades as against a minimum of only 1.08 for Fe 500 in IS-1786. Similarly, we fixed a target value
of 18 – 25 % for elongation as against the minimum 12 – 14.5% specified by BIS.

So, the civil fraternity got rebars that fully satisfied IS codes - but were far better. This was ensured
by a “Quality Audit and Monitoring” system that we made Thermex Licensees adhere to.
Around 2003 we felt that, to meet our basic objective, we also needed to spread awareness amongst
civil engineers about rebars in general and what the steel industry had been giving them since 1975.
Relevant information through papers was presented at international seminars organised by civil
engineering and concrete societies in India. This was done on a regular basis – often 3 or 4 in a
year. Franz Tamm, as the inventor of the Thermex Technology was also invited to give first hand
information about the global scenario and developments in rebars at the international level. I recall
the flutter he created amongst civil engineers when he expressed his dismay at the incorrect use of
the term TMT in India for ‘quenched & self-tempered’ (QST) rebars.

At recent seminars we also demonstrated for the benefit of the civil industry the simple way of
distinguishing improper and genuine QST rebars (or TMT bars as they are unfortunately called in
India). The civil engineers found in us a team of individuals who were transparent and eager to
divulge relevant information.

We also highlighted that changes were being planned in international codes for rebars with the
introduction of a special code AS/NZS 4671 to suit the high seismic nature of New Zealand and
suggested that if New Zealand could make path-breaking changes, defying the established codes in
other countries, India might like to revisit the properties specified in IS: 1786. We argued that India
should make the code easier and simple to implement and make it mandatory for all rebars to have
higher ductility than specified hitherto.

Another important step was independent quality audit of rebars produced by our Licensees. This
was in 2003 when we requested the reputed SDCPL laboratory to undertake this assignment on our
behalf. In spite of the increased number of Thermex Licensees, quality audit of each licensee
continues to be carried out every three months by the designated laboratory without any let up – an
essential feature of the H&K philosophy of ‘service to society’. A quality auditor from SDCPL
(armed with an Identity Card issued by us) visits each Licensee, tests the rebars at site, draws
samples and again checks them at the SDCPL laboratory in Navi Mumbai.

The civil construction industry in turn has noted that they get consistent Thermex rebar quality (and
benefits) irrespective of the producer. It is similar to Pepsi or Coca Cola made in different parts of
the world.

Thus, Thermex is now established as the preferred brand in India.

All these acts and steps were not marketing gimmicks or hype, as some believe. It was a case of
dogged perseverance and simple focus on the job at hand – giving the country a rebar of
international quality. Thermex Grade 500 had arrived. The potential saving of almost Rs 2,500
crores per year by civil industry through use of Thermex 500 in RCC as against the Fe 415 in use
for 35 years had become a distinct possibility. That too, a rebar which had better properties than the
Fe 500 specified in the IS code and was easily available in different parts of the country – the urban
and rural areas. Civil engineers realised that they now had a rebar which was excellent even for
seismic zones 3, 4 & 5.

That was the beginning of a revolution, so to speak.

Looking Ahead
Today we have a different problem confronting us. When H&K was started, Wolfgang Kluetsch
and I had very specific ground rules viz the Company would be a small one with no more than 20
employees. The turn over would be limited to around Rs 8 – 10 crores a year. Thus, we have been
executing about 6 – 8 Thermex orders each year, at the most 10. It was a comfortable level and we
could give due attention to every client.
We had not visualised the impact of all the steps we had undertaken over the past 20 years. We
were totally unprepared for the flood of orders in 2005 – a total of 25. We had to change gears if we
desired to maintain the same standards of service. This is our focus area for the years ahead and I
am happy to say that our team is rising to the occasion splendidly. In the current financial year we
expect to commission 16 to 20 Thermex plants and the capacity of Thermex Licensees will easily
exceed 5 million tonnes of Thermex rebars – around 50% market share.

We foresee further consolidation in the years ahead – but only if we are able to remain focussed on
our basic objectives and sustain the quality of our service to clients.

A lot of support was also received from the print media of the steel and civil sector which regularly
published articles on this unique technology. More importantly presentations in International
seminars organised by various civil bodies in India such as the India Chapter of American Concrete
Institute, ICI and CBR also played a great role in providing us a platform to spread awareness in
the civil sector of the changes taking place globally.

Finally, it is very gratifying to note that every company that has associated with us and Thermex
has prospered and grown by leaps and bounds. Look at even DSP. What a splendid turn around!
The same is true for even our sub-licensees and vendors – and all those who stood by us even when
times were bad.

Finally, January 2006 saw the introduction, conforming to Eurocode-2, of a new code in the UK -
BS: 4449-2005. Our stand had been vindicated and it was heartening to note that we were in tune
with global requirements for rebars. This code has just one grade – 500. A special grade 500C with
high ductility for seismic zones has been added in this new code as was being advocated by us for
India since the start of our awareness campaign.

2006 appears to be a good year. Now it is for India to note the winds of change. We cannot remain
isolated.