OREANDA-NEWS. September 26, 2012. Encouraged by the success of its earlier agreement to ensure quality steel to its clients, state owned Karnataka State Small Industries Development Corporation (KSSIDC) has tied up with Essar Steel for supply of steel products to units across the state till 2015.

A three year agreement to this effect was signed between KSSIDC and Essar Hypermart, retailing arm of Essar Steel, which would now strive to recreate similar tie ups in other states to cater to lakhs of small and medium scale industries across the country. Essar Hypermart CEO Mr Ashok Bajpai and KSSIDC Managing Director, IAS, Mr. Vishwanathan Reddy signed the agreement.

Accordingly, Essar Hypermart will supply products to ten locations viz Channasandra, Veerasandra, Peenya, Tumkur, Devanagere, Hubballi, Belgaum, Mysore, Shivamogga and Mangalore.

On its part, KSSIDC will continue to promote stock and sell Essar’s range of steel products to top small scale industries in these locations. KSSIDC will continue to offer Essar’s products at the list price to industries and provides them with a 30-day, interest-free credit period.

The agreement follows a three year partnership with KSSIDC as a pilot project by Essar Hypermart, as part of the company’s commitment to supply quality products through its statewide distribution network.

After signing the agreement, CEO of Essar Hypermart Mr. Ashok Bajpai said “This is a reflection of the mutually beneficial relationship that both organisations have developed over the years. Essar Hypermart will strive to take this relationship to the next level by supporting and meeting KSSIDC’s requirement of its clients. This is also a testament to Essar’s high quality standards and customer service. It will be our endeavour to build upon this success and assist Karnataka and other IDCs around the country to support small scale enterprises.”

Over the the years, Essar Hypermart has been able to meet KSSIDC’s stringent quality standards and pricing norms to its end consumers. Essar Hypermart’s large distribution network across the state and its ready availability of steel products has ensured that SMEs have access to quality material as per their requirements.

KSSIDC on its part has been fostering the development of small scale industries in Karnataka for over 50 years. It has had a vital role to play in the industrial development of the state. KSSIDC, through its association with Essar Hypermart, has been able to address the issue of accessibility of quality steel products directly to small scale enterprises, thereby reducing dependence upon market fluctuations and addressing quality concerns by sourcing directly from Essar Steel.

KSSIDC has been set up in 1960 on the recommendation of the Central and State Government to boost the creation of industrial estates and assist small scale industries for procurement of raw materials. It has a ready distribution set up across the state of Karnataka to cater to the needs of the small scale industries.

Essar Hypermart leverages this unparalleled reach and benefit provided by KSSIDC and makes its products available to small scale industries through the KSSIDC network. Hence, this renewal is extremely critical and has come at the right time in Karnataka’s growth story.