HYDERABAD/MUMBAI – Cement companies across the country are gearing up to raise prices, though it may take a week or two for dealers to implement the hikes, cement company sources and dealers told Informist.
At least three large cement manufacturers based in the southern part of India confirmed plans to raise prices, while many dealers in Maharashtra, Andhra Pradesh, Telangana, and Karnataka confirmed that several brands had informed them about the hikes. While the companies were unwilling to go on record, dealers said it would take some time to implement the hikes as they are still clearing order backlogs.
Cement retailers in Mumbai said prices have remained unchanged over the exit prices of March, with some expecting an increase in prices by manufacturers later this month. However, dealers say they are not implementing the hikes, given the need to clear older stock at current prices over the next two months in an environment of uncertain demand because of the General Election.
According to a retailer in Mumbai, cement prices are in the range of 330-400 rupees per 50 kg, varying by brand. He added that he heard from his distributor about a hike in the range of 15-20 rupees per bag from cement makers, though he remains unsure when it will be implemented.
Besides national market leader UltraTech Cement, the Adani Cement-owned Ambuja Cements and ACC are dominant players in western India. "Prices have been the same since the beginning of the year," the dealer said. "People had been expecting hikes in April, which is why there was a significant number of orders at the end of March. There is some uncertainty in demand because of the elections. We are not sure whether the price hike may affect demand."
According to Suunil Podar, head of Grace Cements Pvt Ltd, a large Mumbai-based dealership, companies have sent updated prices starting this month, but the stock he has been receiving is at older prices. He said the price hikes are in the range of 20-40 rupees per bag.
"I am not sure why the price hike has not been implemented, whether it is because of the election or otherwise," Podar said. "Demand is generally very good in March, April, and May, and we saw good volumes last month as well."
Cement companies in Andhra Pradesh and Telangana have announced price hikes of 30-40 rupees starting April. In Tamil Nadu, companies informed dealers about a possible hike of 50-80 rupees. In Karnataka, too, companies announced a hike of up to 30 rupees, two dealers based in Hyderabad said.
According to Muthuraman Krishnan, proprietor of SLT Cement Marketing Pvt Ltd, one of the large dealers in Chennai, it may take another two weeks to implement the new pricing, as customers have placed huge orders with the old pricing during the previous fiscal year ending.
Several cement brands, including UltraTech, India Cements, Orient Cement, India Cements, Dalmia Bharat, Sagar Cements, Shree Cement, JK Lakshmi, Ramco Cements, NCL Industries, and Chettinad have significant market presence in the southern states.
At present, a 50 kg bag of cement is being sold in the 280-335-rupee range in Andhra Pradesh and Telangana depending on brand and sales location. In Tamil Nadu, the lowest price for cement is 260 rupees a bag while the top-end brands are sold at 300 rupees in the retail market. End
