New Delhi, June 1: Lakshmi Cement, a division of JK Corp and Kamdhenu Ispat Ltd have entered into a strategic alliance to sell their products through each other's dealers.Under the agreement, customers buying cement from a Lakshmi Cement dealer will have the option of getting Kamdhenu steel from the dealer too. Likewise, those buying steel from a Kamdhenu dealer will have the option of getting Lakshmi cement.
Lakshmi Cement joint president (commercial) Shailendra Chouksey told reporters that the objective of the arrangement was to help consumers buy steel and cement -- two critical inputs for construction -- at the same spot.
``The idea is to facilitate the procurement of genuine cement and steel for the customer at a single location. Even if the dealer concerned does not stock either of the products, it will be made available to the customer. This will be done by a properly managed network where the requirements of the product will be communicated to the nearest dealer of the product,'' saidChouksey.
Kamdhenu Ispat Ltd managing director Satish Aggrawal said the scheme will be launched in Haryana from Tuesday. Kamdhenu Ispat has about 25 dealers in the state while Lakshmi Cement has over 80 dealers.
Based on the response the scheme generates in Haryana, it will also be launched in Delhi, Rajasthan, Uttar Pradesh, Gujarat and Punjab in the next few months, said Aggrawal. Lakshmi Cement has 1500-odd dealers across the country while Kamdhenu Ispat has 400 dealers in North India.
The focus will be on the retail customers in the states and will help both brands build brand loyalty. Those availing of the scheme will also be entitled to participate in a lucky draw, said Chouksey. The draw will be held every three months.
J K Corp has an installed capacity of 3.4 mtpa of cement in North India. Kamdhenu Ispat, with its plant in Alwar, Rajasthan has an installed capacity of 40,000 tonne annually. It produced 44,000 tonne steel in the previous fiscal. The company also came out of the red in 1998-99with a net profit of Rs 46 lakh on a turnover of Rs 62 crore. It had a net loss of Rs 25 lakh on a turnover of Rs 53.7 crore in 1997-98.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.