Amit Shah: Any abrupt rise brings in uncertainty
23 Jun 2018
As per a representation by a printer body, there’s a 25% hike in the cost of input materials. Since January 2018, the cost of US dollar has risen to Rs 68.
In conversation with Amit Shah, director, Spectrum Scan, we find out what print desires under the rising dollar
70-80% of input material in the print process is produced using imported raw material. How will this affect your business, plus the pricing negotiations with your customers?
This is certainly affecting our business, and we have some ongoing projects where we can’t increase the price. So we are squeezed from both sides.
Also, this increase is volatile and it’s difficult to negotiate the pricing with the end customer. Any abrupt rise brings in uncertainty because we are not sure if the price quoted will hold good at the time the order for the job is confirmed.
How will your company absorb this price increase? What is your strategy?
We don’t have any room to negotiate on ongoing projects, so we have to absorb this price increase. We have to look into import/buy directly from the manufacturers. This will help us since the agents/distributors margins will be eliminated.
Will this raw material inflation temper your company’s outlook for the year? What is the percentage you are looking at?
It will not change our outlook...
From an export point of view, a strong dollar will boost turnover. Your comments?
We don’t have large exports... but yes it gives us little extra profit due to a strong dollar.
When the top-level delegation met the GoI representatives, they were asked what is the revenue the print and packaging industry contributes to the Exchequer? Can you hazard a guess?
My wild guess – Rs 10000-crore.