Kolkata: Tata Ryerson is going ahead with the new Tata group objective of going retail. The company, a joint venture between Tata Steel and Ryerson International of USA, will launch its first retail outlet in Kolkata on Friday. While the Tatas have forayed into the retail arena in other areas, it is the first time that steel and steel products will be retailed out of its own outlets. And the first one is all set to meet requirement of small-value clientele. Incidentally, Tata Ryerson, is a premier materials management service provider, keenly pursuing its avowed objective of offering value-added services to consumers of industrial material. “It is not only steel products which we are offering through our services, we have gradually diversified in other metals too like aluminium, zinc, copper etc.” according to a company source.

Into the business for just over three years, the company has realised the virtues of retail and the benefits to customers. “The key to success in the distribution business as of today is cutting down on the value chain that exists between the manufacturer and the customer,” the source said. By going retail themselves, the Tatas would be able to effectively cut down on the different points of distribution that stand between the manufacturing activities and sale.

“The result is that while the customer has to pay a higher price, the manufacturer does not get the right value for its products. By getting into retail ourselves, we will be able to offer a better price to the customer, at the same time getting a better value for our products,” the source said. Tata Ryerson’s first retail point has come up at Chaltabagan in North Kolkata, which happens to be the steel retail hub of the city. Mr. Sandipan Chakravartty, managing director of Tata Ryerson is of the view that this will bring the small consumers of steel closer to the manufacturer.

“Traditionally, the small consumers had to depend on various intermediaries for their requirement of steel which only added to costs without necessarily adding value,” Mr. Chakravartty said. The Tata company would be keenly watching the success of its first retail experience as it hopes to open up further retail points in Kolkata and in other districts of West Bengal as well.