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Dealers and stockists are the vital links of cement industry. They are the people, who are in constant touch with the user industry. They can be rightly said to be the ‘pulse of the industry’. Through this column, we bring to you the voice of the dealers and stockists, featuring their suggestions, expectations and much more, for a better tomorrow for the industry.
Mitan Kampani is the director of R K Powertech Services Pvt Ltd. R K Powertech Services Pvt Ltd supplies cement in Mumbai and Gujarat. He is a dealer for Jaypee Cement. “I deal in Jaypee Cement, which is the 3rd largest cement producer in India” said Kampani and added, “Growth of business is very good”. When asked about the largest selling grade of cement, Kampani replied “OPC cement is primarily used in large construction site and Ready-mix plant while PPC is used in IHB segment and retail sale.” When asked about his view on the effect of volatility in cement price, Kampani said “Yes, price volatility is there but that is based on the demand and supply in the market. If the demand is more the prices would increase, and due to climatic conditions when the sales are low the prices would decrease accordingly. Price change does affect us as we have to convince the customer and explain the reason for the price change. Due to that it takes time for customer to place the orders as they always check with other suppliers. Our company’s monthly dispatch is around 2,500-3,000 MT.” Kampani informs that customers are price sensitive and he has to do a lot of convincing and above all have a good relationship with the customer so that they do not go with any other brands. When asked about his suggestion for improving sales, Kampani replied “Sales can be improved by more advertisements, promotions, conducting meetings with architects, giving presentations, etc”. When asked about the support provided by the manufacturers, Kampani replied, “Support provided by Jaypee Cement is very good; their technical team along with their marketing and sales team are always there to support us.” Delay in unloading cement at the customer site is the main reason for logistic delay, and this is the main cause of concern with all the cement dealers, as the same truck is then used to cater another customer, he says. “If the trucks are not unloaded in time the same truck is not brought back in time for next loading and that leads to delay in supplying to next customer,” he adds on the issues related to dispatches.
Siddharth Mamodia is the CEO of Mamodia Marketing. Mamodia Marketing is a family-run business started in the year 1976. “We are working in Delhi as depot agent of two companies for north Delhi and east Delhi to serve our authorised dealers on all-India basis in non trade/institutional sales,” says Mamodia. When asked about the largest selling cement brand Mamodia replies, “In Delhi we are sales promoter for JK Cement Ltd for east Delhi and in north Delhi for Shriram Cement. The largest seller in trade is Shree Cement because they have their grinding unit nearby, and they are able to conveniently supply 200 to 300 bags to dealers on delivered basis which means prompt supply at competitive rates”. The company does not stock cement and their total sales/indenting in north India is approximately 30,000 to 32,000 MT including imports. When asked about his expectation from the manufacturers, Mamodia replied, “Timely delivery, assured quality, technical support, good incentive, and publicity are the main requirements”. When asked about the opinion on government’s move towards GST and the comparison with the present system, he replied “We can easily make sales in nearby states with common tax system and can make our deliveries faster”. When asked how delays at toll gates can be minimized, Mamodia suggested a pre-paid card system with a scanner, which can read from moving truck at toll booths and common tax structure or GST can stop this delays.
V L INAMDAR is the proprietor of V L Inamdar and Sons. He has been a dealer for the last 15 years. The company supplies cements in Pune. “Growth has been good in the last five years,” says Inamdar. The company is a dealer of Birla Super OPC 53 grade, UltraTech PPC grade cement and others. “Birla Super OPC 53 grade is the largest selling cement, because it has a brand value as well as the quality compared to other brands,” said Inamdar. When asked about the largest selling grade of cement, Inamdar explained “OPC sells more and demand for higher grade cement is less in retails sector”. About the affects of volatility in cement prices, Inamdar said “Volatility in cement prices affects us a lot. Since it is unpredictable, we have to be careful while quoting the rates”. The monthly dispatch of cement from the company is 400 MT. When asked about the ways to improve sales, Inamdar replies “Sales can be improved by keeping the rates in control. Sudden hikes and falls disturb the market. But for the last six months it has been in control”. When asked about the benefits provided by the manufacturers, Inamdar said “Benefits provided by manufactures to us are like incentive tours, some gift items, etc. It boosts our working ability”. To reduce loss of cement during handling, Inamdar suggests that packaging should be reduced to 25 kg from 50 kg. To avoid delays during transportation, Inamdar said “Companies should rent goods depots in every pockets of the city so that material availability will be faster”.
Shyam Thakkar is the proprietor of Thakkar Popatlal Velji Sales Ltd. The company supplies cement to Mumbai, Navi Mumbai, Raigad, and also in some areas in Gujarat, Hyderabad and Delhi. He has been a cement dealer since 1980. The company deals in brands such as Ambuja, ACC, Vasavadatta, The India Cements Ltd, Sanghi, Binani, Orient, CCI. “Our major sales are from Ambuja, India Cements and Vasavadatta followed by others brands,” said Thakkar. When asked about the largest selling grade of cement, Thakkar replied, “OPC sells more because of its fast setting property, however, PPC is produced more because it is an environmental-friendly product”. Thakkar informed that the customers are price sensitive, but he added that there are few customers who are brand conscious, and are ready to pay a premium. The company’s monthly dispatch is 60,000 MT. In order to minimise loss of cement, Thakkar suggests use of higher quality packaging bags. On banking issues he says, “Yes, the interest rate have gone up in recent times, the current rate is 14 per cent” replied Thakkar. When asked about the proportion of institutional sales and retail sales, Thakkar replied it is 35 per cent institutional sales (direct party sales) and 65 per cent retail sales and added that there are no major changes in recent times.
to feature your views in this section, please contact Saleh at 09820326555 or write to him at saleh@asappmedia.com
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