Acc, Ambuja Despatches Well Up During July

The Associated Cement Companies (ACC) has reported 8.21 per cent rise in despatches for July this year over the corresponding month last year. The despatches for July 2001 stood at 9.09 lakh tonne against 8.40 lakh tonne in July 2000.

Gujarat Ambuja Cements Ltd, India's fourth-largest cement maker, announced that its cement despatches rose 18.47 per cent to 436,000 tonne in July from 368,000 tonne in the same month last year.

The production for the month was up 5.32 per cent at 9.49 lakh tonne compared with 9.01 lakh tonne in the corresponding period last year.

The despatches for the April-July 2001 period was 39.59 lakh tonne against 37.47 lakh tonne in the same period last year, up 5.6 per cent. Production rose by 5.31 per cent to 39.64 lakh tonne from 37.69 lakh tonne.

According to A K Jain, president (marketing) of ACC, the volume growth is primarily the impact of the capacity addition at the company's Wadi unit in Karnataka.

During June 2001, the despatches were up 9 per cent at 10.4 lakh tonne compared with 9.53 lakh tonne during June 2000.

The despatch growth during the April-June quarter this year was 5.5 per cent at 30.15 lakh tonne against 28.57 lakh tonne during the same quarter last year.

Gujarat Ambuja's production increased 16.7 percent to 440,000 tonne, the company said.

An analyst with a foreign brokerage, who asked not to be identified, said the increase in sales was because of higher demand in the western state of Gujarat which was hit by a massive earthquake in January this year.

"About 37 percent of Gujarat Ambuja's yearly turnover in volume terms comes from Gujarat," said the analyst. "The demand would have been higher because of rebuilding in the state."

Meanwhile, shares of Gujarat Ambuja rose as much as 2.61 per cent in flat trade on Friday, on the back of news that production and deliveries had increased in July.

"The rise in the stock price is because of monthly numbers," said a dealer with the securities arm of an Indian private sector bank. "The despatches (deliveries) are good and cement prices should remain firm."