Karnataka government’s financing arm Karnataka State Small Industries Development Corporation (KSSIDC) has tied up with Essar Steel for supply of steel products to its clients spread across the state till 2015.
An agreement to this effect was signed between KSSIDC and Essar Hypermart, the retailing arm of Essar Steel. This follows Essar Steel’s three-year partnership with KSSIDC as a pilot project to supply quality products through its statewide distribution network.
“This is a reflection of the mutually beneficial relationship that both organisations have developed over the years. Essar Hypermart will strive to take this relationship to the next level by supporting and meeting KSSIDC’s requirement of its clients,” Ashok Bajpai, CEO of Essar Hypermart, said. He said Essar Hypermart aims to have similar tie-ups in other states to cater to the small and medium scale industries across the country.
According to the agreement, Essar Hypermart will supply steel to small and medium scale industries located in ten locations in the state. On its part, KSSIDC will continue to promote stock and sell Essar’s range of steel products to small scale industries in these locations.
KSSIDC will also continue to offer Essar’s products at the list price to industries, and will provide them with a 30-day interest-free credit period. KSSIDC has been fostering the development of small-scale industries in Karnataka for over 50 years.
Essar Steel has a global steel production capacity of 14 million tonne per annum. It operates seven service centres in India, Indonesia and Canada with an aggregate capacity of over 5 million tonne.
