Government involvement is needed
We sell both in retail and project markets. Majority of our sales is in retail market and our main target is individual customers. Doing business with projects is risky compared to retail market in the current scenario.
Today the market is very slow and the profit level is not good. For the last two years, the industry growth is very low due to various issues like sand problem and overall slowdown. The division of Andhra Pradesh has also created problems for the industry, due to lack of fund allocation for various projects.
Cement price is going high but profit margin is shrinking. So effectively investment is huge and returns is less.
Future looks positive with the government taking some measures on the various projects. However, we have to wait and see the actual growth of the industry and the business. Depends on the market growth, we are thinking of expanding our network to nearby areas also.
Support from cement companies is also not good nowadays. Since the price is going high, we are forced to sell cement at a loss. Involvement of the government is also negligible. In the coming budget, hope the government will do something on the cement prices.
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