Key takeaways from Day 2 of BigMint's 'Build Connect 2026'

• Real-time oversight, data-backed decisions key for future-proofing businesses
  
  
• Steel e-commerce usage remains low at 2-3% but structural shift underway
  
  

BigMint's 'Build Connect: Steel & Construction Show 2026' being held at Yashobhoomi in New Delhi witnessed India's steel dealer and distributor network gathering on one platform to discuss the various challenges facing the industry today. Below are highlights from Day 2 of 'Build Connect 2026':

Future-proofing channel partner businesses

• Enterprise resource planning (ERP) enables compliance-ready, real-time accounting. Automated invoicing, books, stock valuation, and financial posting strengthen governance and control.
  
  
• Credit discipline is critical for distributors. Defined credit limits, grace periods, ageing analysis, and broker management directly impact cash flow health.
  
  
• The net sale realisation (NSR) metric is a more accurate metric for profitability -- freight, discounts, credit notes, quality claims, and interest cost must be factored beyond the headline sale price.
  
  
• Inventory purchase and sales linkage is essential. Real-time stock valuation and working capital monitoring determine margin sustainability.
  
  
• Data-backed expense control is key. Freight optimisation, debtor analysis, and cost visibility improve financial decision-making.
  
  
• AI-led supply chains are shifting from reactive to predictive. Demand forecasting, seasonal signals, and production planning are becoming data-driven.
  
  
• Inventory optimisation through AI reduces dead stock risk. Real-time demand visibility aligns manufacturing, sales, and distribution.
  
  
• Digital transformation is now a competitive necessity. ERP + CRM + dealer management + mobility tools enhance operational scale and decision speed.
  
  

Steel standards, reputation in modern construction

• Certified steel is non-negotiable. BIS compliance ensures structural strength, ductility, durability, and long-term project safety.
  
  
• Quality must be built into the process. There needs to be a shift from post-production inspection to integrated quality assurance across raw material, melting, rolling, and testing.
  
  
• Compliance should be enforced, not assumed. Third-party audits, digital traceability, and stricter regulatory oversight are essential for mega projects.
  
  
• The debate over primary vs secondary steel is irrelevant. Certified chemistry, physical properties, and process control define quality, not manufacturing route.
  
  
• High-strength certified steel drives efficiency -- lower consumption, faster construction, improved sustainability, and reduced embodied carbon.
  
  
• Price-led decisions risk long-term credibility. It can lead to safety issues, project delays, financial loss, and brand damage.
  
  

How supply chain dynamics shape steel prices

• Raw material costs and demand cycles remain primary price drivers. Monsoon, elections, liquidity crunch, and infra push directly influence short-term steel trends.
  
  
• The secondary market acts as a price benchmark. Primary mills often follow secondary movements; a gap beyond INR 3,000-4,000/t accelerates demand shift.
  
  
• Avoid panic and speculative buying. Consistent offtake and average buying strategy outperform spot-led opportunistic trades.
  
  
• Inventory discipline is critical. A 15-20 day cycle is ideal, helping to manage interest burden, improve churn, and reduce exposure to volatility.
  
  
• Fundamentals should be given more importance over sentiment. It is necessary to track order books, raw material signals, regional price trends, and ground feedback before taking pricing calls.
  
  
• Volatility is structural in steel. Profitability depends on risk balancing, cost optimisation, and disciplined supply chain management.
  
  

How e-commerce, tech are unlocking opportunities

• The share of e-commerce usage in the steel market is still low at 2-3% in India, but a structural shift is underway amid rising digital adoption and AI integration.
  
  
• Transparency and reliability remain core gaps. Inventory visibility, dispatch timelines, and payment discipline are critical for scaling B2B platforms.
  
  
• Dealers and marketplaces must collaborate, not compete. Being part of a consortium/aggregated stock models can enhance order fulfilment and market reach.
  
  
• Working capital and financing are the backbone of e-commerce trade. The valuation story is secondary to efficient capital rotation and secured payment cycles.
  
  
• Technology-led differentiation is key. AI-driven procurement, real-time tracking, and digital transaction flow will define the next growth phase in steel trade.
  
  

Protecting cash flows in uncertain markets

• Payment discipline is non-negotiable. No sale is complete until payment is received; selling without recovery is only half execution and strains working capital.
  
  
• Client segmentation is critical. One should classify customers into A, B, C, and D categories; restrict exposure to chronic defaulters (C and D) to prevent warehouse capital blockage.
  
  
• A proactive recovery system is essential. Payment collection begins at the deal finalisation stage; written terms, pre-due reminders, and structured follow-ups strengthen recovery cycles.
  
  
• In terms of credit risk checks before dispatch, sellers should verify the buyer's CIBIL score, GST filing track record, and background/credit reports prior to onboarding or extending credit.
  
  
• A 3C framework should be adopted to define credit control. Clear credit policies, credit limits, and credit days (preferably odd-day terms) ensure structured risk management and disciplined trade practices.
  
  
• Scarcity and supply control strengthen bargaining power. Avoid oversupply; controlled dispatch, firm payment terms, and the ability to say ''No'' improve profitability and payment behaviour.