Armed with an improved demand as well as despatches, cement makers will shortly hike prices by Rs5 per 50 kg bag across the country. The proposed price hike is in addition to the Rs2 per bag increase in eastern India from February 1.
While mid-sized companies, like Binani Cement, JK Lakshmi, Shree Cement, have sent feelers to the dealers on an imminent price hike, major players, such as ACC, Ambuja Cements, Grasim Industries, are contemplating the idea.
At present, cement prices are hovering in the Rs230-240 per bag range in Maharashtra, whereas it’s priced at Rs250 per bag in South and Rs235 per bag in North. In Gujarat, a 50-kg bag costs around Rs200.
The outlook for the January-March quarter is expected to be better than what it was a year ago, as cement despatch has started going up, according to industry observers. For example, Aditya Birla group’s cement shipments in January rose 7.4% year-on-year to 3 million tonne.
Production for the same month rose 9.8% to 3.04 mt. Industry experts don’t expect cement prices to soften in the current fiscal, especially with the demand growing at over 5%.
The real estate sector accounted for almost 55% of demand for cement in FY07. India has more than 70 cement companies and a total installed capacity of 200 million tonne.
