Essar Steel to merge unit with Hypermart

Essar Steel is in the process of merging its steel processing centre and distribution unit with Essar Hypemart, its retail chain for steel, with a view to cut costs, expand business reach and deliver products to customers faster.

The new entity's distribution model will expand the retail chain's offering to customised steel from just standard steel plates earlier. It will also stock long steel products made by other companies. Essar Hypermart previously focused on standard flat steel and orders for customised steel were placed with service centres.

The combined entity is expected to sell 2.6 million tonnes of steel this year compared with the 1.8 mt total sales by the two divisions last year. However, because of the cost savings and other advantages. Essar Hypermart will continue to focus on steel used in the general engineering space by small and medium-size enterprises.