Do you have an idea as to which new sector is looking at availing the services of outsourcing? It is steel manufacturing. SRMB Udyog is a nimble footed TMT bar maker that is looking at trying out the unique business model.
The company has entered into a buyback arrangement with secondary steel units in Jharkhand, Kerala and Uttar Pradesh (India). The TMT bars are a premium construction grade of steel in these markets. The company has tied up for the production of 60000 units in a year in Allahabad and some 40000 units in Jharkhand.
This is one of a kind of outsourcing model that is being tried for the first time. By March 2008 they intend to reach a production capacity of 4 lakh tons. The company has also strengthened their distributor network and has around 500 dealers across the country. The success of the new model of outsourcing will help in the increased adoption of this model in other companies as well.
