Binani Cement, the flagship company of the Rs 1,700-crore Binani group, is considering long-term bulk cement supply contract with real estate developers including Raheja and Hiranandani. The initiative, if it fructifies, will be the first in the industry and other cement companies may follow suit.
Binani Cement’s managing director Vinod Juneja confirmed the discussions between the company and a few real estate firms on this regard. “It is at a very initial stage. Yes, we had talks with some real estate developers on cement contracts”.
According to industry experts, this will be a win-win contract for both. The long-term contract will empower the real estate developers to control over vagaries of price fluctuations of the commodity. On the other hand, Binani Cement will get assured buyers of its produce.
Industry sources said that the realty sector may invite cement companies to participate in bidding before signing any such contracts. Asked on this, Mr Juneja said that his company would not hesitate in bidding, if required. Analysts attributed the main reason for the slow down in the real estate sector to tight monetary condition. Increase in cement prices, that too during the rainy season which normally sees a price drop, makes the situation further unfavourable for the developers.
Incidentally, Binani is also getting into the real estate sector this fiscal. The company has around 56 acres of land in Wada, about 30 km from Thane in Mumbai. It plans to develop the land jointly with a partner into an IT Park. Binani Cement is expanding in the northern and western parts of India in the next quarter. This expansion is a part of the company’s plan to become $1 billion firm by 2012. It operates from its fully-integrated cement plant at Binanigram in Rajasthan.
2 Comments
As they say, the strong will survive or, in this case, those with a solid record, excellent service, the ability to shift with the market and, frankly, those with some cash in the bank have weathered the shift.So what is the A game in real estate these days? It’s different than what it used to be. Here’s my take on the topic: The Real Estate A Game (most of this is not new)
- Full time
- Admin assistant
- Significant internet presence
- Online social networking
- Virtual tours for all listings
- Tracks expenses for client results
- Is known among local Realtors
- Has a proven track record
- Constantly studies the market
- Constantly listens to the mortgage moving target
- Adept at counseling clients through the uncertainties
- Does not work 24/7 (that Realtor will not have longevity)
- Longevity.That’s my take. Anything less is B material.For more view- realtydigest.blogspot.com
Cement Companies Affected Due To Real Estate Slowdown And Inflation.
So Bilani takes right step toward growth of business.