SAIL to focus on rural markets for branded products

SAIL plans to enlarge its branded products portfolio with a special focus on rural sales. The company is looking at options to introduce branded long and flat products as well as increase its dealership network.

SAIL has two principal brands which are popular in the rural market. The brands include “SAIL TMT” reinforcement bars and corrugated and plain sheet brand “SAIL JYOTI”.

These two brands constitute 7-8 per cent of the company's total branded products. The other brands such as “SAILMA” (steel plates and structural brand) and “SAILCOR” (hot roll coil and sheets brand) are mainly for industrial usage.

While speaking on the sidelines of the International Seminar on Sustainable Growth, Mr C.S. Verma, Chairman, SAIL, told

Business Line : “We have seen that branded products are more popular in rural markets. We are planning to enlarge the portfolio of both long and flat products.”

He, however, did not specify what the new products would be or the expected time of launch of these products.

SAIL hopes to increase its rural sales from the current 7-8 per cent to 9 per cent during the current fiscal, Mr Verma said.

SAIL produces around 13 million tonnes of steel.

DEALERS

Mr Verma further added that the company was trying to increase its number of dealers in order to widen its presence in the rural markets.

At present, SAIL has around 2,600 dealers in 265 districts of the country.

In India, the per capita consumption of steel is 49 kg per person per annum while in rural areas the per capita consumption is 3 kg.