India Cement’s Chief, on Thursday, sought to debunk builders’ allegations on the cement price, stating that their outcry was not justified.
“Cement prices are volatile in nature – it goes up and comes down. Builders cry hoarse only when prices go up, but when cement price comes down, they take advantage of it and don’t pass on the benefits,” said N Srinivasan, Chairman & Managing Director, India Cements while answering on builders’ protest over cement price hikes.
Share of cement cost in the total flat value is insignificant. As a thumb rule, only half bag of cement is used per sq feet of construction. If one bag of cement (50 kg) costs Rs 360, it comes to only Rs 180 per sq ft value of a flat. Thus, the increase Rs.30 per bag of cement is nothing given that builders are selling the flats in the price range of Rs.5,000 to Rs.15,000 per sq ft depending on the locations, he added.
Also, not a single builder is buying at market price (retail). The builders buy at negotiated (with cement companies) special price, which is Rs.30-50 lower per bag. “Just because, cement is an organised industry, they are attacking us. They don’t make such noises when the price of sand or rolling steel, which are not in the organised sector, increase,” he pointed out.
“We are not finding fault with builders and their business. We don’t expect them to intervene in our business. They must understand cement is a capital intensive industry in the core sector. It contributes a lot to the economy, income generation and employment creation,” he said.
