Economy & Market
HIMANSHU VORA AND TEJAS VORA are the directors of Recons Group
The company is engaged in cement distribution business since 1990. "We have been initially distributing cement in trade-retail segment. We were mainly dealing with L & T cements. In 1993 Ambuja Cement entered in Mumbai Market and we started promoting Ambuja Cements and also other cement companies. We expanded our business to builders and institutions and also bulk cement segments. We always look for innovative products in our industry and like to promote products with bright future", said Vora. The company does not stock cement. They are the leading distributors of Ambuja Cements and ACC Cements. When asked about the largest selling grade of cement, Vora replied, "The ratio of blended cement to OPC cement in is 50:50. But slowly the trend is increasing towards blended cement. We are witnessing more green initiative and LEED certified buildings. We believe that the future is for green cement". About volatility in price, Vora replied that they are affected due to volatility in pricing as most of the consumers are expecting the same price for whole month and any correction in between affects the consumer confidence. "Very high sales efforts supported by technical follow up can improve sales", said Vora and added that the commission and cash discounts should be percentage based so that in fluctuating and inflationary market they will not affect margins. "No, increase in diesel or petrol price does not affect profits directly, but increase in cement price does affect us as our cash discounts are per bag basis and not on percentage basis," said Vora, when asked, whether the hike in diesel/petrol price affect their profit. Vora suggested some improvement in packaging such as palleting of cement bags, which can save loss of cement. To speed up delays as octroi naka, Vora said that automisation of octroi naka and advance payments system of octroi can help save time. "For all excise restructuring by government ultimately, end users has to pay the differences," said Vora, when asked about his opinion on restructuring of excise duty in Budget 2011-12.