V Ramesh: Customers compare quotes, so we need to be more competitive to retain business
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 V Ramesh, director, Chennai Microprint, we find out what print desires under the rising dollar
70-80% of input material in the print process is produced using the imported raw material. How will this affect your business, plus the pricing negotiations with your customers?
Most of our input materials are procured locally, but there’s a 25% increase. This has been informed to our customers and we are following up with them for price revision. Customers may compare quotes from other printers and we may need to be more competitive to retain business.
How will your company absorb this price increase? What is your strategy?
The price increase cannot be fully absorbed by our company. We are suggesting to our customers to use the alternate material or change material configuration and specifications.
Will this raw material inflation temper your company’s outlook for the year? What is the percentage you are looking at?
We feel there will not be any change.
From an export point of view, a strong dollar will boost turnover. Your comments?
We do a very less direct export. We don’t think this will impact our turnover.