• Inaugurates state-of-the-art INR 750-million facility in Bahadurgarh
• Over Rs. 1000 crore to be spent for setting up of such facilities across the country.
• Service centre will enable company to offer customized products and small lots to users
• Facility backed by Essar’s 4.6 MTPA Hazira Steel Plant, thus ensuring steady supplies and world-class quality
• Essar Steel now has four service centres in India with combined capacity of 2.5 MTPA
  

New Delhi, May 06, 2009: Global steel producer Essar Steel today inaugurated its fourth Steel Service Centre facility in India at Bahadurgarh near New Delhi. With the commissioning of this facility, the combined capacity of Essar Steel’s four service centres now stands at 2.5 million tonnes per annum, which is the country’s largest.

The Bahadurgarh facility, set up at a cost of Rs 750 million and with a capacity to process 2.5 lakh tonnes of steel per annum, was inaugurated by Mr. Sunil Kant Munjal, Chairman, Hero Corporate Service Limited, in the presence of Mr Shashi Ruia, Chairman, Essar Group.

Speaking on the occasion Mr Ruia said, ”This investment is a part of our strategy to be closer to our customer. It will help the company achieve several goals simultaneously. Service centres are an independent business in western countries. Essar is developing this concept in India.”

Mr. J.Mehra, CEO, Essar Steel Business Group, said that in the evolving markets like India the customer service and just-in-time delivery to important segments of the economy play an important role. Essar Steel endeavors to meet this requirement through various initiatives. It is in pursuit of this that we plan to invest over a Rs. 1000 crore for setting up of such facilities across the country.

“This is one of our most modern steel processing facilities that will cater to various user segments in North India, like auto & auto components, white goods and SME. We will also cater to the needs of our Essar Steelhypermart consumers,” said Vikram Amin, Executive Director, Sales and Marketing, Essar Steel. Essar Steel has over 145 Hypermarts and Expressmarts across India.

The Bahadurgarh facility is ideally located near the country’s largest auto hub. It will include a CR slitting line, CR narrow cut to length line, CR wide cut to length line and HR cut to length line. It will enable Essar Steel to cater to even single sheet customers, with small lots and customised deliveries for ready-to-use steel.

Mr Amin added: “The centre will improve our customer centricity and help us meet delivery timelines much better, making us the steelmaker of choice for large and small customers alike. We will increase our reach and simultaneously modify usage experience of our customers by matching performance to expectations. It is a step towards improving the competitiveness of Indian steel users through just-in-time deliveries.”

The Service Centre is backed by Essar Steel’s 4.6 MTPA steel plant at Hazira. This will ensure consistent supplies and quality of products. Essar Steel has three other service centres – one each in Hazira, Pune and Chennai.