RINL proposes synergy with NMDC for marketing steel products

Steelmaker Rashtriya Ispat Nigam Ltd (RINL), Visakhapatnam said it in talks with PSU major NMDC for marketing steel products through its strong marketing network.

RINL CMD P Madhusudan said NMDC is going to commission a new steel plant and the idea is that RINL will undertake the marketing as it has a strong network for it across the country.

“NMDC going to commission a new steel plant. The idea is that they need not open out their own marketing offices. We already have our marketing network across the country. This is for marketing steel products. We are looking at the synergy that can be brought between both the companies,” Madhusudan told reporters on the sidelines of National Cost Convention ? 2015, organised by Institute of Cost Accountants of India.

“But, it will be two-three years down the line where plant of NMDC would be ready. So, the marketing would start thereafter. In the meantime, we are trying to work out a strategy through which they need not perhaps invest in the marketing network and RINL could step in as we already have a national network (for marketing),” he added. The CMD said a ‘thought process’ has begun on the matter and more detailed discussions are needed.

Replying to a query, he said production and sales were hit due to cyclone ‘Hudhud’ that struck the Andhra coast in October last year, specially Visakhapatnam.He said a flat growth in the turnover, compared to last year is being looked at and price correction has been done.