Essar Steel, is planning to nearly double its retail outlets that include both company-owned and franchise outlets and add third party products in its stores, as part of its plans to focus more on retail sales.
The company, which has about 85 Essar-owned hypermarts and 300 franchisee-owned outlets across the country, will be adding about 70 more hypermarts and 200 franchisee outlets within a year. “Our initiative, the first of its kind in the domestic steel industry, to have retail sales through company owned outlets has given us good results. Retail sales at present account for about 25 per cent of our business,” said Mr Vikram Amin, Executive Director (Sales and Marketing), Essar Steel.
The primary objective of these outlets is to make available steel in smaller packages to customers with quicker delivery, transparent pricing and customised quantities. The hypermarts primarily cater to customers in the SME (small and medium enterprises) segment, ranging from small manufacturers, local fabricators and engineering firms to large corporations and construction companies.