Essar Steel expects retail chain Hypermart to clock a billion dollars (about Rs 6,789 crore) in revenue this fiscal on the back of growing demand in the infrastructure and construction sector. The chain, run by Ruias-promoted steel maker, provides customised services to original equipment manufacturers, retailers as well as small and medium enterprises through a chain of 100 hypermarts and 200-300 franchises.

"We expect to clock USD 1 billion in revenue this fiscal as the concept of steel retail chains has picked up and we are seeing a pick up in sales for flat steel products as well as fabrications," said Ravi Singh, CEO, Hypermart.

The retail chain expects to sell 1.5 million tonnes (MT) of steel products in 2017-18, a growth of almost 67 per cent from 0.9 MT sales it had clocked in 2015-16 fiscal.

"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," he explained.

Hypermart expects to sell flat steel products worth about Rs 6,000 crore. Besides, another Rs 600-700 crore will come from the fabrication and e-hypermart segment, he added.

At present, the retail market for steel products in India is around 8 MT.

(Continued on next page)