The Economic Times cited Mr Beni Prasad Verma Union steel minister as saying that RINL to evolve innovative marketing strategies and intensify marketing efforts in rural areas.

Mr Verma said that a consequent drop in domestic sales for long products used in building and construction sector. Low demand has sent most steel companies back to the table in H1 to rework their marketing plans.

On the production front too, RINL's faced a shortfall in target for saleable steel during the half year ended September 30th 2012 due to heavy rainfall and acute power shortage in Andhra Pradesh.

Mr Verma was reviewing the performance of the company during the H1 of 2012-13 during which RINL posted growth in production of hot metal, liquid steel and value added steels and in generation of captive power. RINL said that it also improved its operating profit and profit after tax during H1 of 2012-13.

However, RINL's performance was hit during the period under review by weak demand for long products which affected domestic sales. RINL, which mainly produces longs used in construction and infrastructure sector, took steps like correction in prices during H1 to improve sales.

During H1, RINL improved its rural marketing network by 69% and growth in sales increased to 88%. RINL in a statement said that it has paid INR 1414.51 to the government in the H1 of 2012-13 as dividend and towards redemption of preference capital.

Source - The Economic Times

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