Mukand to join steel vortal

By Our Special Correspondent

MUMBAI, DEC. 19. Domestic stainless and alloy steel major Mukand and its associate MKJ Enterprises have agreed to become strategic partners in the vertical portal (vortal) for the steel industry clickforsteel.com.

Uttam Steel has also signed an MoU with the vortal to pick up a stake. With this Mukand and Uttam Steel will exclusively use the trading platform of clickforsteel for the sale of their products.

Mukand and MKJ enterprises have committed to picking up a 20 per cent stake in the vortal and Uttam Steel is taking a 5 per cent stake. Clickforsteel.com was launched in April this year and is promoted by the Essar group.

Pursuant to partnering clickforsteel, Mukand has entered into a supply contract wherein it is committed to transacting business worth Rs. 250 crores through the vortal in three years. The supply contract is for five years. Uttam Steel is committed to sell steel worth Rs. 40 crore annually through clickforsteel. Its supply contract with the vortal is also for five years.Essar Steel also has a similar supply contract through which it is committed to selling steel worth Rs. 180 crores annually through the portal. Addressing a press conference here today, Mr. Prashant Ruia, Director, Essar group, said with the three committed to selling steel through the portal, the product profile on clickforsteel will now include hot rolled flat steel products that are supplied by Essar Steel, higher value flat products like cold rolled steel and galvanised steel which are Uttam Steel's products and stainless steel and other alloy steel products wherein Mukand is a dominant player. ``This will result in a 40 per cent increase in clickforsteel's revenues,'' Mr. Ruia added.

In addition to these three steel companies, clickforsteel has 14 preferred partners who are offering steel for sale on the platform and over 4,400 registered members. Since July, when the trading platform became active, about Rs. 60 crores has been traded through the platform. Clickforsteel earns up to one per cent of the transaction from the seller.

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Section  : Business
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