JSW Group to merge its distribution and supply chain segments

India’s JSW Group has announced plans to merge the distribution and supply chain operations of its steel, cement and paint businesses in India for better synergies and to save costs, according to the Times of India.

The group has already combined the distribution operations of the three segments in east India and will roll out the initiative across the rest of the country in the coming months.

As a result of the COVID-19 pandemic, JSW Group has already been reducing costs by cutting capex and conserving liquidity.

In east India, JSW has 1766 cement dealers and 950 steel distribution partners. Out of these, only 110 currently sell both steel and cement. Therefore, it has started a new distribution initiative called 'JSW One' with Salboni as the hub for eastern India.

Starting with 2Mt capacity, the Salboni hub will have a 3.5Mt stocking capacity within the next couple of years. The group has constructed the hub adjacent to its Salboni cement plant.