New Delhi: Tata Iron and Steel Company (Tisco) has set a target of 20 per cent of its sales coming from branded products this year, going up to 40 per cent in a few years.

This was revealed by the company on the occasion of the launch of Steelium, its branded cold rolled (CR) steel, in Delhi on Tuesday.

Tisco’s other branded flat products include Tata Shakti, Tiscon and Tata Bearing. The company’s chief of sales of flat products Ramesh Mani said, "We have set a target of Rs 2,000 crore, or 20 per cent of our turnover, of sales coming from branded products during the current financial year. This should go up to 40 per cent within 2-3 years."

Steelium will be sold in the market at a premium of about Rs 500-1,200 per tonne over the prices of the unbranded version. Justifying this premium, Mr Mani said, "As the product goes through various agents in the distribution chain, the branding will assure the customer of a genuine product of the promised quality. The technology adopted to imprint the brand cannot be replicated by small players with the intentions of pushing counterfeits in the market."

Bulk customers like Telco and Maruti would not be sold the branded variety as they receive custom-made material directly from Tisco. "The branding initiatives are in tune with the company’s new thinking of transforming itself from a manufacturer to a marketer and evolving from products to a brand. Branding will add value to the product and will help in highlighting it in the otherwise fragmented market for CR steel. It will also boost brand recall thereby creating a niche," said Mr Mani.

To build closer ties with customers, Tisco is working on strengthening its distribution network and ensuring stock availability at all times. It is also going to roll out schemes such as Fabricators Club and loyalty programs. It is also considering certifying cutting facilities in all regions to help customers receive the product without loss in value.