Essar Steel expects $1 bn revenue from Hypermart in 2016-17 BUSIFLUENCE The global producer of steel, Essar Steel expects its retail chain Hypermart to achieve a billion dollars (about ₹ 6,789 crore) in revenue in the current fiscal year as the demand in the infrastructure and construction sector has been rapidly increasing. The Hypermart, run by Ruias-promoted steel maker, offers customised services to original equipment manufacturers, retailers as well as small and medium enterprises by a chain of 100 hypermarts and up to 300 franchises. Hypermart CEO Ravi Singh said, “We expect to clock US$ 1 billion in revenue this fiscal as the concept of steel retail chains has picked up and we are seeing a pickup in sales for flat steel products as well as fabrications”. Essar Steel’s retail chain expects to sell 1.5 million tonnes (MT) of steel products in 2016-17, which is almost 67% higher from 0.9 MT sales it had achieved in 2015-16 fiscal year. “In the last six months, Hypermart has sold 7 lakh tonnes of various steel products. In the last two months alone we have sold 2.39 lakh tonnes. This growth is due to pick up in demand from the construction industry, which is also edging requirement for fabrications,” Singh explained. Singh added that the retail chain expects to do business of flat steel products worth about ₹6,000 crore, besides, another ₹600-700 crore will come from the fabrication and e-hypermart segment. The CEO said at present, the retail market for steel products in India is around 8 MT. “Essar Hypermart plans to secure 20% of this market in current year by growing significantly. Performances in April and May support this trend. This will account for 25% of Essar Steel’s revenue,” Singh said. Singh added, Essar Steel had achieved a gross revenue of ₹17,162 crore in 2014-15 fiscal. Manufacturing and fabrications are an important pillar of urbanisation, Singh said, adding that steel fabrications are a green building solution. Singh said Essar Hypermart has been making progress in the power plant buildings, elevated roads and other customised buildings. “With a Pan-India network and backing of steel mill (Hazira), we plan to significantly ramp up our volumes by adding warehouses and residential structures. Essar Hypermart plans to be the largest fabricator in India by volume in 2016-17,” the CEO noted. Singh said e-Hypermart is a virtual platform which offers material handling equipments, industrial paints, packaging tapes, pipes and Tubes, TMT bars and calibration services. The e-commerce platform of the company is targeting 10% of retail sales.