Back

Cement cos hike prices by 10 rupees/50 kg in Andhra, Telangana

Thursday, Jul 9, 2020

 

–Cement co source: Hikes to stabilize prices in Andhra, Telangana

–Dealers: Ramco Cements, Kesoram Cements, Dalmia Bharat ups price

–Orient Cement, NCL Industries up price in Andhra, Telangana

–UltraTech, India Cements, up prices in Andhra, Telangana

 

By Narayana Krishna

 

HYDERABAD – Cement companies in Andhra Pradesh and Telangana have increased the price of a 50 kg cement bag by 10 rupees, with immediate effect, dealers in both states told Cogencis.

 

After the hike, a bag of cement in both states is priced at 340-380 rupees, depending on the brand and location, dealers said.

 

The revision is aimed at keeping the price of the commodity above the 300-rupee level per bag, dealers said.

 

"Companies stopped dispatches a week ago and resuming now after price hike," a Hyderabad-based dealer said.


A managing director of a large cement manufacturing company based out of Hyderabad confirmed the hike, and said, the increase is aimed at stabilising the rates at their current levels. "It is not exactly for hike the price, but to stabilize the current price," the official said.

 

A managing director of a large cement manufacturing company based out of Hyderabad confirmed the hike. The increase is aimed at stabilising the rates at their current levels, the official said. 


The leading brands that have raised prices include UltraTech Cement Ltd, Ambuja Cements Ltd, Shree Cement Ltd, ACC Ltd, India Cements Ltd, Sagar Cements Ltd, NCL Industries Ltd, Orient Cement Ltd, The Ramco Cements Ltd, Kesoram Cements and Dalmia Bharat Ltd.

 

During May-June almost all cement companies in the region reduced prices of their product to boost demand. Pressure from state governments and real estate developers associations also prompted a price reduction during June.

 

As prices started falling from above 400-rupee level to below 350-rupee levels, cement companies last week decided to reduce the supply and take a call on price hikes, said an industry source on the condition of anonymity.


The combined sales of cement companies in Andhra Pradesh and Telangana for May stood at 1.2 mln tn and at 1.7 mln tn for June, the industry official said.

 

Cement companies are currently operating at an average capacity utilisation of 40% and expect improvement in the next one to two months.

 

At 1211 IST, shares of UltraTech were at 3,836.10 rupees, up 1.3% on the National Stock Exchange, while those of India Cements were at 124.85 rupees, 1.4% higher, and Orient Cement at 68.05 rupees down 1.5%.  End

 

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

 

Edited by Aditya Sakorkar

 

Cogencis Tel +91 (22) 6619-0000

Send comments to feedback@cogencis.com

This copy was first published on the Cogencis WorkStation

© Cogencis Information Services Ltd. 2020. All rights reserved.

Other News

Govt source says expect at least 600 bln rupees as dividend from RBI

Monday, Aug 3, 2020 –Govt source: Expect at least 600 bln rupees as RBI dividend FY21–RBI board likely to meet Aug 14 to decide on dividend By Shubham Batra and Adrija ChatterjeeNEW DELHI — The government expects the Reserve Bank of India to transfer at least 600 bln rupees as surplus this month, a finance ministry official said. "(There is) […]

Govt accepts 1 mln tn more rice from Chhattisgarh in central pool

Monday, Aug 3, 2020 By Sampad Nandy NEW DELHI – The Centre has accepted around 1.0 mln tn more rice, procured by the government of Chhattisgarh, in the central pool in the ongoing marketing year, senior government officials said.  This has taken the overall procurement by the Centre in Chhattisgarh to 4.7 mln tn, from over 3.8 mln tn about a […]

Budget, banking depts spar over 1.25-trln-rupee recapitalisation plan

Monday, Aug 3, 2020 –Govt source: Banking dept seeks 1.25 trln rupees for bks' fund infusion–Budget dept has reservations on bks capital infusion plan –Banking dept sought PSU bank fund infusion via bonds–Cabinet to take final call on PSU bank fund infusion By Adrija Chatterjee and Shubham Batra NEW DELHI – The Budget and banking departments of the finance ministry […]