The over 2,500-strong countrywide dealer network of Maharatna Steel Authority of India Limited (SAIL), spread over 635 districts covering all States and Union Territories of the country, has achieved a YoY growth of 8.7% in retail sales during the first nine months of the current financial year by achieving 5.04 lakh tonnes of sales and registering a double digit growth in eastern and northern regions. In January ’11 alone, sales through the dealer network were a record 0.54 lakh tonnes, a growth of nearly 18% over January ’10. Expressing happiness over the growth of retail sales, SAIL Chairman Mr C.S. Verma said, “SAIL believes that steel should be made available in every nook and corner of the country. We have pioneered the drive of establishing a vast and enduring network of dealers across the country, and we are the only steel maker in India with at least one dealer in every district”.
SAIL dealers mainly market the company’s branded products such as SAIL-TMT, SAIL-Jyoti (GP/GC) and light structurals, catering to direct customers in the remotest areas of the country. Since inception, SAIL has marketed over 20 lakh tonnes of steel through its dealer network. In order to further boost its retail sales, SAIL launched a Dealership Scheme in 2005-06, and has been actively pursuing it. SAIL’s concerted efforts in expanding its dealer base has led to a robust growth in SAIL dealers – from 200 dealers in 2005-06 to around 2588 dealers today. SAIL supplies 100% SAIL TMT EQR (Earth-quake resistant) besides adding products like flats, squares, wire rods etc to the dealership basket. The Company has a dedicated fleet of transporters for door delivery of materials to the dealer’s premises.
SAIL maintains direct contact with its dealers without involving intermediaries such as distributors or agencies. With ‘Shahar se gaon tak’ as its objective, the Company gives special emphasis on expanding its scope of business in rural India. Towards that aim, SAIL plans to rope in at least two dealers in every district of the country. Further, to enhance efficiency of its retail activity, SAIL is concentrating on availability of materials in small customized lots and bundles. It aims to maintain regular stocks of dealer items in its godowns to service just-in-time requirements of the dealers.
To enhance product knowledge and popularize steel consumption among present and prospective buyers, SAIL holds frequent meetings of dealers with masons, structural engineers and architects.
In 2009, SAIL introduced the “Exclusive Dealer” scheme which has helped to strengthen the activities of the network spread across the country. SAIL also has plans to open company owned retail shops which will serve as model stores in terms of service, products, information, etc. In its recently announced Dealership Scheme, SAIL has invited application for dealership across 11 states in eastern region and 6 states in the northern region.