Mohit Shah of Ahmedabad Cement Company Pvt Ltd
Dealers and stockists are the vital link of cement industry. They are the people, who are in constant touch with the user industry. They can be rightly said to be the 'pulse of the industry'. Through this column, we bring to you the voice of the dealers and stockists, featuring their suggestions, expectations and much more, for a better tomorrow for the industry.
Mohit Shah of Ahmedabad Cement Company Pvt Ltd is in the cement business since 1983. "After ACC has closed down their business in Gujarat, from 2003 we are the indenting agent for Sanghi brand cement for Gujarat," said Shah. The company also supplies Shree Cement and Mycem brand cement, outside Gujarat. The comany supplies cement mostly to SEZ developers for infrastructure development projects. When asked about the largest selling grade of cement, Shah replied "Our manufacturer manufactures only OPC 53 grade cement. In Rajasthan, Haryana and Punjab, PPC is in demand. While in Andhra Pradesh, Mycem brand 43 Grade OPC is in demand". About the volatility in price, Shah said, "Looking at the infrastructure growth in Gujarat, cement is in high demand. As per my opinion volatility in price is normal and will not affect us or the cement demand." The company's average monthly dispatch is around 25,000 MT during the financial year 2010-11.To increase sales, Shah suggested that manufacturer should do better sales promotion activities like advertisement through wall painting, hoardings, TV and newspaper. Apart from this, government agencies like municipal corporation should prefer to use particular brand of cement for their projects. Manufacturer should canvas for this with proper quality tests and convince them the advantages of their products over others. Regarding the benefits, he said, "At present, manufacturer provides TPC per bag, which remains the same for any quantity since long back. It should be increased considerably and should be slab wise. Manufacturer should also pay 1.5 to 2 per cent commission on sales price, as routine expenses has increased over the years." "The company does not stock cement as it is directly dispatched by manufacturer, so increase in diesel/petrol prices does not affect much to our profit," mentioned Shah. About the packaging, Shah said, "Present HDPE packing of cement is satisfactory. In this packing there should be proper handle to carry bag easily to avoid hooking while loading and unloading." "At present duty rate for both (trade and non-trade) are different. This creates an additional burden of work on both excise department and manufacturer to verify and audit," said Shah, when asked about his reaction on the Budget.