Asia / Oceania
Delayed monsoon pushes cement prices in India
Jul, 03 2012
(India) -- The delayed monsoon in India is helping the cause of the cement industry as it is leading to continuity in construction activities. Consequently, the price of cement has also increased in several pockets of the country. During the quarter, despite some volatility, the average all-India price for a 50-kg bag was around Rs 300.
In the first two months of the quarter, the cement industry posted a robust growth of 9.6 per cent The growth is likely to continue as delayed monsoons are helping construction to go on.
Holcim-owned Ambuja Cements reported a rise of 7.3 per cent in its June sales. The shares of several cement companies also zoomed. The shares of JK Cement jumped close to 10 per cent. Those of Prism Cement, a central India-based company, moved 8.5 per cent up. JK Lakshmi Cement witnessed a rise of over four per cent in its shares, whereas ACC, Shree Cement and India Cement gained between three and four per cent on the Bombay Stock Exchange.
Despite the cost pressures, the Indian cement makers are likely to make big profits due to higher prices and robust sales.
India's cement sector is the world's second largest, with an overall production capacity of 330 mt per annum. The top five manufacturers include UltraTech, ACC and Ambuja.
By: Rashmi Kalia (ARI-C NEWS)
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