KEM DRILLS PRIVATE LIMITED

ABOUT KEM DRILLS

To meet the challenge of productivity, KEM gives you high performance drill rods. Our modern plant, fully equipped with state-of-the-art technology, assures consistent quality product, meeting stringent specifications of customers.

Uncompromising quality control, involving constant testing and validation right from raw material check to finish inspection, make our drill rods the right choice for Mining, Quarrying, Construction and Drilling activities. Our drill rods are manufactured from high quality imported alloy steel, thereby ensuring longest possible drilling life under most arduous conditions.

Our carbide inserts are endowed with three distinctive properties viz; Hardness, Toughness, Wear Resistance. In addition, our inserts are meticulously brazed for strong joints. To ensure effective rust protection on the outside surface and inside surface hole, our rods are given a special chemical treatments.

Our well synchronized customer service cell helps solve customer specific problems.

• M/s KEM Drills Private Limited was incorporated in the year 1988 as a Private Limited Company under the Indian Companies Act.

• The plant was originally set up in a notified backward area in Medak district in the Province of Andhra Pradesh with Financial Assistance from State as well as Central Government.

• The entire plant and machinery were sourced indigenously. However the prime raw material was imported. It took nearly 5 years to standardize the product. The company now has a product portfolio that is accepted internationally.

• The source of raw materials has also changed from time to time. Over the period we have added machinery to balance the production and the plant has been made more “State of the Art” in terms of capacity as well as technology.

• The company has been making significant profits and is presently free from debt.

PROMOTERS OF KEM DRILLS

The company was promoted by two technocrat entrepreneurs; Mr S. Gouri Shanker (Post Graduate Metallurgical Engineer with specialization in Heat Treatment from the elite Indian Institute of Science) and Mr R. Sundar Raj (also a Post Graduate Metallurgical Engineer). Mr S. Gouri Shanker is the Chairman and Managing Partner.

FINANCIAL AND MARKET PRESENCE

The company is profit making with turnover exceeding USD 3 million. Over 30 % of the revenue is from exports. We have presence in all major mining countries like South Africa, Australia and Saudi Arabia. All leading brands are present in these countries.

In India we have strongly positioned ourselves in the dimensional stone industry catering to the excavation of granite raw blocks and for infrastructural projects like tunneling etc. Our customer base includes major granite mining companies and underground mining companies being operated by the Government.

MARKET ASSESSMENT

• Originally the Drill Rod market comprised of :
i)  Drilling in underground mining
ii) Excavation of natural stone

• KEM Drills is located in the Deccan Plateau (South India) which comprises of natural stone deposits. The focus initially was on the natural stone industry - mostly for drilling & excavation of granite raw blocks. The Granite market is very demanding and by virtue of consistent supply of a quality product we have a strong edge over the other manufacturers and we have continued to grow in the granite segment. The other major market is Underground Mining.

• This was the scenario till about 2008-09. Now with the growing Indian economy the thrust on infrastructural development is phenomenal – constructions of roads & highways. This apart every metro city within India is building tunnels for mass transportation.

• Last year, in South India alone, there are over 30 TBZ (Tunnel Boring Machines) working. This alone can give a clear picture that there is a very large market for Drifter & Drifter Accessories for tunneling which is now dominated by high cost European suppliers

• Other fast growing areas to look into are :
i)   Waterwell drilling sector
ii)  Reverse circulation hammers
iii) Button bits

• In India, we have an advantage wherein duty on semi finished is much less than the finished product. Importing semi-finished goods and processing it in India gives a very big cost advantage and makes the product very competitive.

• India has treaty with other neighboring countries like Srilanka, Bangladesh etc. wherein we have a free trade arrangement so, capturing such market from India would be far more easier.