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SAIL Launches New Rural Dealership Scheme

08/25/2011 - Maharatna Steel Authority of India Ltd. (SAIL) has launched a Rural Dealership Scheme to increase the penetration of its branded products. The plan envisages appointment of more than 1000 “rural dealers” in all states of the country during the current financial year.

Maharatna Steel Authority of India Ltd. (SAIL) has launched a Rural Dealership Scheme to encourage use of quality steel items in predominantly rural areas, and to increase the penetration of the company's branded products. The plan envisages appointment of more than 1000 “rural dealers” in all states of the country during the current financial year.
 
This initiative is in addition to SAIL's existing five-year-old dealership scheme under which nearly 2700 dealers operate in 630 districts in the country.
 
SAIL expects the Rural Dealership Scheme to enable its branded products such as SAIL-TMT rebars and SAIL-JYOTI (galvanized plain and corrugated sheets) to reach rural consumers across the country. To ensure that SAIL steel is easily available and at competitive prices, the company will arrange transportation of the steel products from its nearest warehouses to the dealers' outlets and bear the transportation costs.
 
To encourage wider participation for dealers, financial incentives have been provided under the scheme. SAIL also plans to facilitate business for prospective dealers through suitable promotion/publicity avenues.
 
SAIL Chairman C.S. Verma said: "The rural market in India is undergoing rapid transformation with its newfound purchasing power. This potential could help us in raising per capita steel consumption in the country provided we understand their requirement better and produce suitable products. We need more innovative steel solutions suited to the dynamics of the rural market."
 
The new Rural Dealership Scheme is expected to help increase per capita steel consumption (PCSC) in the country. Currently, PCSC in rural India is estimated to be 9.78 kg compared to around 140 kg in urban areas of the country, according to SAIL.
 
SAIL's existing dealership scheme has been growing. During Q1 (April-June '11) of the current financial year, the company achieved 21% growth in sales through its existing dealer network. Sales of branded products SAIL-JYOTI and SAIL-TMT achieved growth of 57% and 9.5%, respectively, through this distribution channel.