Expansion of Dealer Network by Sail
With a view to widen the reach of its steel products, the Steel Authority of India Ltd. (SAIL) is in the process of expanding its dealer network extensively. As on 1st December, 2010, the SAIL dealership network consists of 2582 dealers spread over 630 districts. As per SAIL Dealership Policy, dealers are required to stock Thermo Mechanically Treated (TMT) Bars, Galvanised Plain / Galvanised Corrugated (GP/GC) Sheets and other items required by the common man and sell to customers at prices fixed by SAIL. Appointment of dealers in various districts/blocks is aimed at making steel items of mass consumption available near the consuming points in remote areas at competitive prices.
SALIENT FEATURES OF THE SAIL DEALERSHIP SCHEME
1. Products covered: Thermo Mechanically Treated (TMT), Galvanised Plain / Galvanised Corrugated (GP/GC) and Light Structurals.
2. Quantity envisaged: Upto 400 MT a month cumulative for all products.
3. Price: SAIL fixes a maximum recommended retail price (MRRP) for each State and Product every month.
4. Appointment: Dealers under the scheme are appointed through open paper / SAIL website advertisement. Preference is accorded to SC/ST & OBC categories. Security Deposit of Rs.500/-MT and upto Rs.1 Lac is to be furnished by the dealers. However no deposit is collected from SC/ST & OBC category of Dealers.
5. Benefits:
(i) Materials are door delivered by SAIL to Dealer premises, free of cost.
(ii) Dealership margin of Rs.1000/- PMT for TMT and Light Structurals andRs.1500/- for GP/GC is provided. Rs.200/-MT is provided in addition for delivery of materials at customers’ premises by the Dealer.
(iii) Top 15 dealers will be selected from each region for annual awards based on their fulfillment of performance parameters.
6. Tenure:
The tenure is for a period of five years. However, review of performance would be undertaken after two years and yearly thereafter. Non-performance and non-fulfilment of terms and conditions would lead to cancellation/termination of dealership.
7. Obligations of the Dealer:
(a) To cater to small/tiny demands of consumers within the assigned territorial jurisdiction.
(b) To maintain stocks of products of SAIL, so that they are available “Off-the- Shelf”.
(c) To undertake sales promotion (through Hoardings, Wall Paintings, Advertisement etc.) of SAIL products as advised by SAIL.
(d) To display SAIL Logo, Back-lit Boards, Promotional Items etc. at their premises.
(e) To submit monthly report on performance.
(f) To prominently display MRRP Board at their premises.
(g) To charge to their customers at prices within MRRP; and
(h) To comply with all the terms and condition of the scheme.
With a view to widen the reach of its steel products, the Steel Authority of India Ltd. (SAIL) is in the process of expanding its dealer network extensively. As on 1st December, 2010, the SAIL dealership network consists of 2582 dealers spread over 630 districts. As per SAIL Dealership Policy, dealers are required to stock Thermo Mechanically Treated (TMT) Bars, Galvanised Plain / Galvanised Corrugated (GP/GC) Sheets and other items required by the common man and sell to customers at prices fixed by SAIL. Appointment of dealers in various districts/blocks is aimed at making steel items of mass consumption available near the consuming points in remote areas at competitive prices.
SALIENT FEATURES OF THE SAIL DEALERSHIP SCHEME
1. Products covered: Thermo Mechanically Treated (TMT), Galvanised Plain / Galvanised Corrugated (GP/GC) and Light Structurals.
2. Quantity envisaged: Upto 400 MT a month cumulative for all products.
3. Price: SAIL fixes a maximum recommended retail price (MRRP) for each State and Product every month.
4. Appointment: Dealers under the scheme are appointed through open paper / SAIL website advertisement. Preference is accorded to SC/ST & OBC categories. Security Deposit of Rs.500/-MT and upto Rs.1 Lac is to be furnished by the dealers. However no deposit is collected from SC/ST & OBC category of Dealers.
5. Benefits:
(i) Materials are door delivered by SAIL to Dealer premises, free of cost.
(ii) Dealership margin of Rs.1000/- PMT for TMT and Light Structurals andRs.1500/- for GP/GC is provided. Rs.200/-MT is provided in addition for delivery of materials at customers’ premises by the Dealer.
(iii) Top 15 dealers will be selected from each region for annual awards based on their fulfillment of performance parameters.
6. Tenure:
The tenure is for a period of five years. However, review of performance would be undertaken after two years and yearly thereafter. Non-performance and non-fulfilment of terms and conditions would lead to cancellation/termination of dealership.
7. Obligations of the Dealer:
(a) To cater to small/tiny demands of consumers within the assigned territorial jurisdiction.
(b) To maintain stocks of products of SAIL, so that they are available “Off-the- Shelf”.
(c) To undertake sales promotion (through Hoardings, Wall Paintings, Advertisement etc.) of SAIL products as advised by SAIL.
(d) To display SAIL Logo, Back-lit Boards, Promotional Items etc. at their premises.
(e) To submit monthly report on performance.
(f) To prominently display MRRP Board at their premises.
(g) To charge to their customers at prices within MRRP; and
(h) To comply with all the terms and condition of the scheme.
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