JSW to Merge Steel, Cement, Paints Biz Distribution & Supply
The $12-billion JSW Group is merging the distribution and supply chain operations of its steel, cement and paints businesses in India for better synergies and to save costs. The conglomerate has already combined the distribution operations of the three businesses in east India and will roll out the initiative across the country in the coming months.
All the three products have a common set of customers as they are essential in building a home. In order to reach out to these common consumers, an integrated effort is being mobilised through this initiative, said the JSW Group.
The move comes amid the Covid-19 pandemic that has disrupted traditional distribution and retail models and boosted growth of digital channels. The conglomerate has already been controlling costs by cutting capital expenditure and conserving liquidity amid uncertain market conditions triggered by the pandemic.