The Hindu Business Line : Essar Steel retail foray reaps rewards

Mumbai, Sept. 18 Essar Steel’s venture in retailing appears to have led to a significant mark-up in sales. For the first quarter of the current fiscal, Essar Steel Hypermart revenues stood at Rs 565 crore, representing 20 per cent of its total revenues.

The company had set up a chain of over 80 Essar Steel Hypermart outlets to offer a range of flat steel such as hot rolled, cold rolled and galvanised products.

Established as a one-stop solution to address the needs of SMEs, its success appears to be expanding the retail product range to include longs, structural and tubular steel as well. More such outlets are in the offing.

The hypermarts are in major industrial towns in States such as Gujarat, Maharashtra, Madhya Pradesh, Delhi and Haryana.

A senior Essar spokesman said that customers benefit as the company furnishes them a pricelist of the product range, unlike the unorganised segment that has catered to their needs so far.

Besides, the outlets instil confidence and transparency, as the purchaser is sure of the product, price and quality.

“Small volumes, prompt deliveries, transparent pricing and above all, consistent and guaranteed quality are some of the basic requirements of retail customers. Over the years, these requirements had been a challenge to large steel producers,” he added.

In another initiative, the company has tied up with a service provider for generating service responses.

A centralised call centre has been established to follow up enquiries; sending an SMS to 3636 with ‘STEEL’ as message will set the process in motion.

More Stories on : Performance | Retailing | Steel

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