The single most important decision in evaluating a business is pricing power. If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you've got a terrible business.
- Charles Munger / Warren Buffett
In the current business environment, how many businesses can confidently say that they are able to pass on the 'Cost Push' on account of inflation?
Not Voltas, Blue Star or Steel companies.
How many businesses are not afraid of goods getting dumped from China?
Not L&T and BHEL. They have been lobbying with the government for more than past 6 months to have anti-dumping duty on imported power equipments from China.
In this context, checkout the following interview of the executive director of Cera, Mr. Vidush Somany. From this interview, one can get answers to the above two questions.
I believe, Cera has got a reasonable pricing power.
