MN Pandey: To absorb the effect, we will figure out ways, distribute the cost at various places
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 MN Pandey, director, Avantika Printers, we find out what print desires under the rising dollar
23 Jun 2018 | 11826 Views | By Noel D'Cunha
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?
The impact of hike in dollar cost will be deep on the printing business. It will become costlier not only for us, the printers but also, for the end consumer.
How will your company absorb this price increase? What is your strategy?
As a business, we have always been providing the best quality in the industry, and we will continue to do so. To absorb the effect, we will figure out ways, distribute the cost at various places, but yes, the end consumer will be affected.
Will this raw material inflation temper your company’s outlook for the year? What is the percentage you are looking at?
It won't be affected. The overall turnover might take a hit. Since cost of the product will increase then the client will reduce the quantity.
From an export point of view, a strong dollar will boost turnover. Your comments?
Yes, a strong dollar will have a positive impact on the turnover, but it might be compensated by the purchase of raw materials.
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?
No, I would not know.