Major supplier are both the big manufacturing firms like Tata, Sail, JSW, Essar and medium and small scale manufacture like Rathi, Kamdhneu and nearby local manufacturer.
The price difference between the products of such company varies from 2-4 rupees per kg. Stock comprises of both long and flat products. Local retailer preference first goes for the local products and then the branded steel products. The local products are less finished as compared to branded steel. Market also has the China steel products which are of same standard but at less price even though huge transportation cost.
The steel market is low at current times. Also the Tata, Essar and such brands have better finished products that that of SAIL. Supplier tends to supply more than demand, thus creating stock pile. There are no such preferred supplier it depend on price and demand. Major customers are dealers, builders and people nearby area.
The territory of business is mostly confined to Delhi-NCR region. Transportation is not much of a problem as it is carried out during night, container are not preferred as the product are of different length and size also the products are not fragile. The time interval for bringing material in stock varies across product and thus accordingly they are brought into stock. Branded steel products can be designed by engineered work and steel usages can be saved up to 15-20%. Our common observation during survey that a lot of man power is used in handling the steel products, the use of technology is quite low.
Thus we also got to know about the shortage of man power. Also now the business people has to file four C-form that is on quarterly basis.
