– Vinay Laddha, Proprietor, Karnataka Cement Udyog
We have been in cement dealership business for a long period and this is our 25th year. We cater to the Bengaluru market, and deal with UltraTech and Birla White. We have our depot in Bengaluru and we stock 700-750 tonne of Birla White and Wall Care Putty, and the grey cement comes to around 5,000-6,000 tonne. In the total business, 90 per cent is from retail segment and 10 per cent is institutional. Our sales in institutional segment is low because the payment terms is very bad here. The volume requirement is very high and the payment is much delayed. This makes a huge impact on our business. In the retail market, we can do multiple business rather than blocking the money in the institutional market.
Cement price is a major issue as the price is going up invariably without any reason, which is always a concern. Our margin is fixed whether you sell at Rs 300 or Rs 400 per bag. This has prompted customers to look for other options. Wherever brand preference is not important, they go for less known brands to save cost.
The market trend is currently slow. However, in the overall market, the trend in the next one year looks positive with some growth expected. New projects are coming and the purchasing power of the people are also going up. We are confident that in the next six months there would be a turnaround and the sales would increase.