Vizag Steel strengthens rural focus

CHENNAI: Public sector Rashtriya Ispat Nigam (Vizag Steel) has strengthened its distribution channel to promote the consumption of steel in rural areas. The initiative is part of the Centre’s steel policy, which seeks to double per capita consumption of steel in rural areas to 4 kgs per man by ’20.

Vizag Steel director, commercial, H S Chhatwal said the company has appointed 96 district-level dealers across the country and another nine will be added by the year end.

It has already covered all the districts in the south. The expanded channel will be in addition to VSP’s existing 22 marketing outlets, he said.

The company is looking at an offtake of 50 tonne a month per dealer and expects to double the target soon. Chhatwal said each distributor is required to invest about Rs 12 lakh per month on distribution.

He said there was tremendous scope to promote steel in rural areas as it has a distinct advantage over conventional construction materials. “It costs less, protects environment and is recyclable. It is also wind, cyclone and earthquake resistant,” he said.

He said that a unique steel village adopted by VSP near Visakhpatnam will be ready by February ’07. It has developed designs for low-cost housing and bullock carts, which will be showcased at the village.