Cement dealers apprehensive of business

While the cement sector is recording profits and seeing growth, some channel members (dealers) are concerned with the 'cut throat' nature of the business.

A survey by Feedback Consulting, on the channel satisfaction, covering members on their attitudes towards the business and experiences in dealing with 23 major cement companies, revealed that one in five cement channel members is apprehensive of being in the cement business.

The survey further showed that there was no pride in being a cement dealer and the next generation was not interested in continuing with the family business. Higher incidence of apprehension was in tier 1 cities of the Western region.

Two-thirds of cement channel members were delighted with the experience of dealing with cement companies. This is understandable given the profitable nature of the business presently. However, about one in 10 were not happy with the brands handled.

The channel satisfaction survey was conducted during April-June this year covering 2,576 cement channel partners across 31 centres.

The survey also measured channel satisfaction on over 80 parameters. Some parameters related to channel policy, commercial terms, relationships and regional office empowerment were the more vital ones as the satisfaction levels with firms were lower.

Some of the issues channel members were concerned with were of sub dealers who are serviced by the first-line dealers. They are relatively more dissatisfied and feel neglected. They were also concerned about the increasing levels of direct sales to large institutional buyers by companies.

On an all-India basis, a few key issues like poor attitude and experience were seen with the channel partners in the Western region and Tier 1 cities in northern region.

The survey showed some companies performing well. In the west "" Ambuja scored over its competitors, in south "" Madras Cement, Chettinad, in north ""Mangalam, Bangur, and in the East "" Ultratech, Ambuja, Century.