They are Backward integrated
If u see their product manufacturing chain
They Source Iron Ore and makes sponge iron & from that billets & then Pipes and so on
This is the reason behind their stable & High margin compared to Peers + They focus only on VAP Products (90%+ sales of VAP), while competitors & china focus on High Volume/Commodity products
Backward Integration can save Hariom in bad times like if for any reason Sponge Iron/Steel/Billets rises they would not be impacted much as they manufacture such products (Even they can sell that products, if they gets opportunity as management is growth oriented)
In short:
-Backward Integration (Save margin & can fight competition in bad times)
-Focus on VAP Products only
Above 2 lead to stable margin
Hope you get it
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