After price reduction, Udayapur Cement sees sales double

Published On: November 7, 2019 09:54 AM NPT By: MAHESHWAR CHAMLING RAI

UDAYAPUR, Nov 7: The sale of Gaida cement – a product of Udayapur Cement Industry Ltd – has gone up after the state-owned company reduced its price by Rs 25 per sack (of 50 kg).

The meeting of board of directors of the company had revised the price. The decision came into effect from Friday.

According to company officials, daily sales have increased to 10,000 to 12,000 sacks after the price revisions. Before that, average daily sale of the company was about 5,000 sacks.

Nabal Kishor Shah, general manager of Udayapur Cement Industry Ltd, said that the company decided to lower cement price by Rs 25 per sack targeting consumers. “Earlier, we had provided Rs 25 per sack as bonus. But the scheme benefited only the dealers. Now, we have slashed the retail prices,” he added.

Shah also said the decision to reduce price has led to sales increment. “Our average daily sales have doubled,” he said, adding: “Though our product is superior compared to cement produced by privately-owned industries, we felt high price tag was keeping buyers away.”

Dhruba Devkota, deputy general manger of the company, agreed with Shah. “No cement company in the country can match us in terms of quality. But our sales were affected after other companies reduced price of their products. We had to revise price as it is a competitive market,” he added.

Officials of the company claim that Gaida cement is considered among the best cements in Asia. 

Gaida cement is now available for Rs 775 per sack, down from Rs 803 a week ago. The product used to cost as high as Rs 950 per sack earlier.

“As consumers go for cheaper products in the market, we felt it is good to lower price instead up piling up products in our godown,” said Devkota.

Sanjay Lal Karna, chief of the production division, said that the company was producing 750 tons of cement every day. The installed capacity of the company is 800 tons.

The company management has set a target of selling 3.2 million sacks of cement in this fiscal year.


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