Multibrand options are good only if the demand is high. Jitendra Agrawal, Agrawal Construction, Partner.
We have been supplying cement in and around Raipur in Chattisgarh from the last ten years. We are exclusive dealers of Birla Gold. We prefer an exclusive dealership as it is beneficial for us, looking at the sale volumes here and the location. Having a multibrand option is a good idea if the demand is high.
The demand has fallen lately in Raipur as sand for construction is not available in sufficient quantities. Another issue is that the rainy season continued for longer than usual this time.
Now the competition is getting stiffer. We can see that cement from the south is coming in and that selling at price s lower than those of the local suppliers. I believe that cement companies might be operating at high profit margins. How else can they transport cement for such a long distance and earn profit on it? The cost of cement has more than doubled in last few years. This hike is not in proportion to the inflation.