Name matters

Calcutta, April 9: Branding is the latest buzz in the domestic steel industry, where key players like Steel Authority of India (SAIL), Tata Steel and the SPS Group are planning to brand their entire product range.

Tata Steel, the largest producer in the private sector, has already chalked out a major investment plan for brand promotions in the current financial year.

Last year, the company earned 27 per cent of its revenues from branded products, a figure it expects to double in a few years.

“Branding is a focus for our product range. We also have plans for significant investment in the current fiscal to build up our brand image,” said B. Muthuraman, managing director of Tata Steel, which sells Tata Shakti, Tiscon and Steelium brands.

SAIL, the largest steel maker, is also planning to brand 100 per cent of its long products, used mostly in construction.

Says Subir Bhattacharya, managing director, Durgapur Steel Plant: “Branding our bars and rods, among the best in the country, will help us carve a niche market.”

The SAIL unit has already been branding its products in a way that makes it almost impossible to fake them. “Brand is important for a real identity in the market. And that is exactly what we are doing,” he said.

Branding is also the biggest weapon major steel firms have had in their battle against the unorganised sector over the last couple of years.

“Few people understand the value of buying products from reputed companies, especially for construction purposes, although it is costlier at times. But safety is a major concern and that is why it is necessary for every one to go for branded products,” a senior SAIL executive said.

The SPS group, which has the largest facility in the private sector in Bengal, is highly aggressive about branding; all its TMT bars are sold under the Elegant brand.

Bipin Vohra, managing director of the group, says brand is a primary factor in the quest for a niche market.

“Brand for us is the certificate of quality that we promise to deliver. We don’t sell a single bar from our company that does not carry our brand-name. Of course, our product is a little costlier compared with those coming from the unorganised sector. But one can always be sure of the quality we deliver,” Vohra said.

SPS spends Rs 5 crore a year on brand promotions. It has tied up with Germany’s Thermax to brand its products.