Cement firms slash prices in Gujarat

In the non-trade business or bulk segment, the prices have been slashed by Rs 8-10 a bag in the past week, according to sources.

"The retail price of cement is about Rs 212-215 per bag while for non-trade business, the landing cost is about Rs 204-208 per bag," said an official of a cement company. With capacities of about 18-20 million tonnes to be added this year, there is a fear of oversupply in the industry, which can further pressurise pricing.

 

So far, the prices have been slashed only in Gujarat. With the advent of the monsoon season, there is expected to be a slowdown in demand.

Interestingly, cement companies had hiked the prices in April by Rs 3-5 a bag, citing rising demand and soaring input costs.

When contacted, a senior UltraTech official refused to comment. UltraTech, the country's largest exporter of cement clinker, exports over 2.5 million tonnes per annum.

This constitutes about 30 per cent of the country's total exports. Ambuja Cement and UltraTech together accounted for about 58 per cent of the total cement exports in FY07-08.

Many companies from Pakistan including DG Khan, Pakistan Cement Company, a subsidiary of Orascom Construction Industries and Lucky Cement, have begun exporting cement to India. The landing cost of cement in Gujarat ports is about Rs 170-180 per bag, sources said.