To cash in on e-tailing boom, Essar Steel today launched an online platform for both buying and selling the alloy and other related products, which it claimed is the country's first such offering in the metals space.
Called E-Hypermart, the online platform -- primarily aimed at its dealers/vendors -- is an extension of its retail arm Hypermart launched in 2006.
The company said it hopes to clock USD 100 million in sales from the platform in the first year of operations, which will be formally launched on August 15. It hopes to corner 30 per cent of sales from Hypermart through this platform, Essar Hypermart chief executive and managing director Ravi Singh said here.
"We see a potential of e-Hypermart touching USD 1 billion in sales over the next three years," Singh added.
"Branded e-Hypermart (EHM), the online platform will target B2B segments. E-Hypermart is an extension of our pioneering retail venture Essar Hypermart to enable its customers to buy steel online. The online platform has already registered over 3,000 online anchor customers," Singh said.
Currently, sales through the Hypermart retail channel contributes around 25 per cent of the steel major's total sales. Out of the total sales of 4.5 million ton, the retail trade constitutes around 20 per cent, he added.
Though this is a B2B platform, Essar Steel executive director for strategy and business development Vikram Amin said, they expect retail trade also to take place on the online platform.
Not just that, anyone can buy Essar steel and make end-products and sell it back on the platform, making this a true online marketplace, Amin said, adding anyone can buy and sell even non-Essar Steel products as well.
The company has already roped in as many as 3,000 anchor customers on the platform and it hopes to take this to over 10,000 by the end of the first year of operations.
"Our aim is to enroll over 1,000 vendors by the end of current fiscal year. Even before launch we have 10 vendors already on the platform. We have also tied up with as many as 38 banks for online payment facility," Singh added.
