ICR is constantly in touch with cement dealers, who are the crucial, connecting link between the manufacturer and the consumer. Dealers know the pulse of market, beat by beat. So we asked them how their business was going and what were the problems they were beset with. Here is their response, in their voice.
"We expect the demand to bounce back from January onward." – Sumit Paigude, Proprietor, Amit Steel
We started our services in 1997. Today we are selling around 3500 to 5000 tonnes in a month. At any given point we have a stock of around 1000 bags at our warehouse. We are supplying cement primarily in Pune and also in Solapur city. Our top selling brands include Ambuja, Coromandel and Vasavdatta. We feel that having multiple brands at the shop is better as it offers a variety to the customers. More than that, from a business perspective, it ensures continuity of business. For example, recently we had a huge shortage of Ambuja Cement due to shortage of wagons for transporting the material. The demand for cement was sluggish in past year. This year the demand seems to be improving. We expect the demand to bounce back from January onward. Most of the projects are initiated during Diwali. Recently, cement prices were increased dramatically, which led to a reaction from the builder community. When cement prices were slashed they were reduced in a gradual manner, but when they bounced back the rates increased suddenly. I think that is not a good strategy.
Apart from selling cement we are also into selling steel and such products related to construction. One cannot depend on cement alone as a sole source of revenue.