Financial Daily from THE HINDU group of publications
Thursday, Apr 20, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 20, 2006 |
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Marketing
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Promotions & Offers Maruti to buy more steel from domestic cos Our Bureau
More freebies The programme will be for existing and new Maruti customers who will get discounts at IOC fuel pumps while they can also use the card as a credit card.
New Delhi , April 19 Passenger car major Maruti Udyog on Wednesday said it planned to buy more steel from local companies rather than import in order to cut down on rising production costs. The company is in talks with a few Indian steel producers for the same, Mr Jagdish Khattar, Managing Director, Maruti Udyog, told presspersons on the sidelines of a press conference announcing a new loyalty programme. He added that the company usually negotiated prices for six months and on volumes for a year. "This helps us to maintain a steady supply of raw materials irrespective of price fluctuations," he said. Mr Khattar did not specify what percentage of steel the company currently imports, though industry watchers estimate it to be about 60-70 per cent.
Advantage steel makers
The move is likely to help steel makers such as Tata Steel and Bhushan Steel. Maruti currently imports steel from Posco as well as from steel companies in Japan. "Buying more steel from local companies instead of importing will help Maruti save on costs and on currency fluctuations," Mr Khattar said. Meanwhile, Maruti Udyog launched a new loyalty programme for its customers on Wednesday, under which the company will issue an autocard in partnership with Indian Oil Corporation (IOC) and Citibank. The `loyalty-cum-rewards programme' will be for existing and new Maruti customers who will get discounts at IOC fuel pumps while they can also use the card as a credit card. "Maruti's customers can earn and redeem points from their normal car-related and lifestyle spends, and be rewarded handsomely when they buy a new car from our stable," Mr Khattar said. The card, which will be issued free-of-cost, will also enable customers to earn discounts on servicing or while buying accessories at Maruti workshops.
More Stories on : Promotions & Offers | Steel | Cars | Maruti Udyog Ltd
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