The Hindu Business Line : SAIL asks retailers to limit profit margin

New Delhi, July 18 Steel Authority of India Ltd has come out as the first steel company in the country to set an indicative profit margin for steel traders. It has also issued warnings to its customers that if steel purchased for consumption is sold in the market it will attract strict punitive measures.

SAIL has two types of memorandums of understanding with its customers – those with consuming companies and those with traders.

The company has advised the traders having MoU with it to limit retail margins within Rs 1,200 a tonne over the price at which they have procured from SAIL.

“Any departure from this limit will invite stern action. These customers have also been advised to inform about their stockholding of SAIL products on a weekly basis,” the company said in a release.

As for the actual users, the company has informed them in writing that their purchases from the company are only meant for actual consumption and any resale of the product will attract punitive action. They have also been advised to inform SAIL about their stock position on a regular basis.

The branches and stockyards of SAIL have been alerted to keep a strict vigil on this and instructed to stop supplies to dealers who do not adhere to the direction, the release added.

To further ensure that steel reaches actual consumers at correct prices, SAIL has introduced a special scheme in Kolkata and Faridabad for supply of plates and cold rolled coils to consumers who require up to 10 tonnes of these items against an affidavit acknowledging self-consumption.

Related Stories:
`We want to make profits, but we don't like to profiteer'

More Stories on : Steel | Retailing | Steel Authority of India Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page