Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 12-Mar-2015

In a bid to harness group synergies, diversified natural resources giant Sesa Sterlite is hoping to save $1.3 billion in costs by restructuring its procurement and marketing strategy over the coming four years. The Anil Agarwal-led conglomerate is seeking to save $800 million in procurement and earn $500 million through enhanced marketing by 2020's end.

The company said it will optimise vendor portfolio and combine fuel and coal procurement at group level. It will also integrate logistics activities of its businesses and decrease waste. In its investor presentation, Sesa Sterlite noted that it will enhance unit pricing of its products, and also expand product portfolio and boost its presence in global markets. The company will save $300 million in FY-16 through grouplevel purchase policies and $250 million by changing its pricing strategy.

Cost reductions have become more and more important to continue to be profitable in a low commodity price environment. Sesa Sterlite reduced its capital investment target to half to $1 billion for next fiscal year to lower debt levels. It is also enhancing capacity consumption in aluminium and energy businesses to increase cash inflows.

Go to previous page