Tata Steel steps up focus on digital, physical channels to drive volumes

Tata Steel has sharpened focus on digital and physical channel expansion to deepen market penetration and drive volumes.

The steel manufacturer's on ground delivery and distribution network rose 11 per cent year-on-year (y-o-y) in Q3 or December  quarter of this fiscal. It  has also witnessed a substantive scale up in its digital channel. Multi-brand e-commence platform Tata Aashiyana has touched an annualized revenue rate of Rs 380 crore during Q3. Likewise. Tata Basera, an initiative to leverage distribution networks across Tata Group Companies  realised a year-to-date sales of Rs 114 crore.

The steel behemoth's retail business experienced 16 per cent y-o-y growth during Q3. Tata Tiscon achieved 12 per cent volume growth led by Aashiyana channel ramp up and group synergy initiatives. For Tata Shaktee, volume appreciated 13 per cent y-o-y with the launch of long length GC (galvanized iron corrugated) sheets, WAMA (wall profile) and improvement in TSBSL’s (Tata Steel BSL Ltd) galvanized line capability. Tata Kosh, a brand focused on rural consumable markets saw its retail footprint soaring three times in the quarter under review.

Tata Steel's emerging customer business logged  37 per cent y-o-y growth. New channel capacity drove 40 per cent of sales growth achieved in Q3. Similarly, sale of coated products surged 60 per cent y-o-y. Sales of coated products moved up 41 per cent in the period, the company said in an analysts' presentation for the quarter ended December 31, 2020.

The steel firm achieved 17 per cent quarter-on-quarter (q-o-q) in total deliveries with 15 per cent hike in domestic deliveries  despite three per cent dip in India's apparent steel consumption. In automobiles segment, Tata Steel maintained flat growth amid 13 per cent drop in industry output. Deliveries in branded products & retail   and industrial products & projects segments rose 22 per cent and 12 per cent q-o-q respectively.