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OM Synergies
Read time: 3 mins Added date: 24/10/2024
An SME scrap metal dealer has achieved 50% annual growth by expanding its global trading network, supported by Lloyds.
OM Synergies shows its mettle with rapid international expansion
An SME scrap metal dealer has achieved 50% annual growth by expanding its global trading network, supported by Lloyds.
Abhishek Agarwal, Managing Director at OM Synergies, calls the scrap iron his family business has been trading for 50 years ‘black gold’.
He travels the globe sourcing waste metal, from old railway tracks and industrial waste to scrap cars and processed household scrap. It is then transported to new markets where it can be recycled and reused. But it was a multi-million pound trade finance deal with Lloyds that gave his business, OM Synergies, a new lease of life.
Speaking while on a business trip to India, Abhishek said: “Scrap yards collect and process waste iron, steel, aluminium and other kinds of metal from industries including construction and manufacturing, fabrication and even from household rubbish.
“Our role as international traders is to find the places where there is a surplus supply and move it to where there is demand. We collect it and sell it overseas, primarily in Asia, where it is melted down and recycled, so we make sure waste is never wasted.”
Until recently, the Birmingham-based business primarily bought its scrap in the UK, which was then shipped to India, Pakistan and Bangladesh. But a seven-figure Lloyds facility, backed by UK Export Finance, means Abhishek can now do bigger deals. So, he hit the road, sourcing new suppliers in Europe and winning new customers in the Far East.
Exporting
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Purchasing power
With greater resources, OM Synergies has been able to increase the size of a typical shipment from 500 tonnes to as much as 5,000 tonnes.
Abhishek said: “Before we partnered with Lloyds, we were not growing that rapidly because we didn’t have sufficient funding in place to take all the opportunities we wanted to.
“Lloyds gave us the much-needed purchasing power to venture into new markets, including Germany, Belgium, the Netherlands and Poland. And we are expanding our sales markets into Thailand, Vietnam and Indonesia. But this is still the tip of the iceberg.”
Since it was first agreed in 2023, OM’s trade finance facility has been increased by 50%. The business now trades more than 20,000 tonnes of scrap every month, up from around 8,000 and Abhishek says dealing with Lloyds makes a refreshing change from previous lenders.
Tailor-made support
“I come from a business family and I have had lots of experience working with international banks. The unique thing about Lloyds is that they made the effort to properly understand our business and then tailor-made a product to make sure it worked for us.
“We have been in this industry for many years now, so we have the experience and the knowledge to do it well. But Lloyds brought in the missing factor, which was the financial support we needed to achieve our full potential. They are very professional, but at the same time we have really bonded with the team.”
OM’s growth means it has also been able to expand its team by around a third. It has recruited experienced industry executives to senior strategic and commercial positions, with office locations including Poland, Australia, Malaysia, the US and India.
Vishal Raja, Associate Director, Trade Client Management at Lloyds, said: “We spent a lot of time making sure that we structured this facility so it would work for OM. We’ve continued to tweak it in response to changes in the macro business environment and as the business has entered new markets.
“It means we’ve been able to support the business through this growth phase, and there is still plenty of room for further expansion.
“OM has a really dynamic and entrepreneurial management team and I'm just really happy to be part of their journey.”
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