Hyderabad

Cement prices may see upward revision

Cement companies would like to review the prices once the coal and fuel prices stabilise.

Cement companies would like to review the prices once the coal and fuel prices stabilise.   | Photo Credit: REUTERS

Rising input costs, other issues to figure in two-day cement industry event from Dec. 20

Cement consumers may well brace to pay more with manufacturers of the commodity planning to take a review of the price in the coming months in the wake of volatility in the input costs.

A review is on the cards in next 3-4 months, a representative of the industry told media persons at a briefing on the two-day Cement Expo international conference and exhibition beginning in the city on December 20.

Cement companies would like to review the prices once the coal and fuel prices stabilise. They would also prefer to wait for the Union Budget before taking a decision, said Atul Priyadarshi, Senior AGM of Kalburgi Cement Pvt Ltd (formerly Vicat Sagar Cement).

Holding to the prices beyond a point and sustaining in the backdrop of rising input costs, however, would be difficult for the industry, he said, adding that the price per bag of cement in Telangana was in the ₹280 to ₹320 band.

To queries on demand, he said the subdued demand that prevailed in the last few quarters in south India was expected to give way to higher consumption with the elections. A further pick up in demand is expected in Telangana with the government returning to power with a good majority, he said.

In Telangana and Andhra Pradesh, there are around 25-30 cement companies, of varying sizes, dealing in around 70 brands. The installed capacity of the cement plants in the region is 70-75 million tonnes, while the average utilisation is around 75%. Over the next five years, the capacity is set to be enhanced by 10-15 MT.

The event, to be held at the Hitex, comprising a conference and presentation of awards is being organised by the FCC (FIRST Construction Council), an infrastructure think tank focused on providing latest updates on the construction industry.

FCC founder and president Pratap Padode said the 10th in the series of the biennial expo served as a platform for the industry to showcase new products, services and technology besides discussing trends and challenges.

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Printable version | Feb 27, 2020 1:18:16 PM | https://www.thehindu.com/news/cities/Hyderabad/cement-prices-may-see-upward-revision/article25766974.ece

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