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Informist, Thursday, Oct. 3, 2024

 

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--Dealers: Cement cos up prices by INR 20-30/50 kg in Andhra, Telangana
--Dealers: Cement cos up prices by INR 10-20/50 kg in Tamil Nadu
--Dealers: Andhra, Telangana, Tamil Nadu cement price hike effective Thu
--Dealers: To pass on cement price hike with immediate effect
--Dealers: UltratTech, India Cements, Dalmia Bharat up prices
--Dealers: ACC, Ambuja Cement, Chettinad, NCL Industries up prices
--Dealers: Ramco Cements, Sagar Cements, Orient Cement up prices
 

 

By Narayana Krishna

 

HYDERABAD - Cement manufacturers in Telangana, Andhra Pradesh, and Tamil Nadu have announced a price hike of INR 10-30 per 50-kg bag, effective Thursday, multiple dealers and industry officials told Informist. While prices in Andhra Pradesh and Telangana have been raised by INR 20-30, the hike in Tamil Nadu is of INR 10-20, dealers said.

 

Following the price hike, the price of a 50-kg cement bag in Andhra Pradesh and Telangana will be INR 300-340, while in Tamil Nadu, it will range from INR 310 to INR 350, dealers said. Cement companies in Andhra Pradesh and Telangana aim to maintain prices above INR 300 per bag, they said.

 

Almost all cement brands, including UltraTech, India Cements, Dalmia, Ramco Cements, ACC, Ambuja, Chettinad, NCL Industries, Sagar Cements, and Orient Cement have hiked prices, the dealers said.

 

In August, cement companies tried to increase prices by INR 20 per bag in these states, but struggled to fully implement the hike. According to a dealer in Chennai, cement companies managed to retain a price increase of INR 5-10 per bag, against the target of INR 20 during Aug-Sept due to weak demand amid heavy rain and floods.

 

A senior official from a Hyderabad-based cement manufacturing company said the companies were determined to implement a price hike this month, as their operating costs were rising and margins were at risk. However, they might take a week to determine how much of the hike has been absorbed by the market, the official said.

 

In Andhra Pradesh and Telangana, cement demand was subdued in August and September due to seasonal rains and weak construction activity. The official said that while companies are willing to increase prices in line with market trends, many pull back prices in the middle of the month to boost volumes. Excess capacity and competition for market share are the key reasons why companies struggle to maintain the higher prices initially targeted, the official said.

 

At 1053 IST, shares of UltraTech were at INR 11,891.70 on the National Stock Exchange, up 0.5% from the previous close, while India Cements was up 0.5% at INR 366.35. ACC's shares were largely steady at INR 2,509.95 and Ambuja Cements' shares were at INR 629.75, down 0.4%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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