Leading cement companies such as Associated Cement Companies
(ACC), Gujarat Ambuja Cement, Grasim Industries and India
Cement have registered an over 10-to-30-per cent growth
in despatches during the last six months period.
has recorded a growth 32.6 per cent in April-September
2003 as against the industry growth rate of 4.3 per cent.
For the month of September alone ACC grew by 13.4 per
cent on a year-to-year (yoy) basis as against the industry
growth rate of 5.79 per cent in the quarter ended September
Gujarat Ambuja group has also shown an improved performance
with 200-per cent growth in April-September as against
the industry growth rate of 4.3 per cent in the same period.
It grew by 4.93 per cent yoy in September 2003.
tracking the industry say domestic cement consumption
in the September quarter grew by around 5.8 per cent on
a yoy basis to 8.95 million tonnes as compared to 8.46
million tonnes in the corresponding period last year.
Urmik Chhaya, an analyst with Karvy Consultants: "For
the first six months of the current fiscal (April-September),
the cement sector witnessed a growth rate of 4.3 per cent.
Domestic consumption increased from 54.34 million tonnes
between April-September to 56.69 million tonnes in during
the same period."
Industries has registered a growth of 6 per cent in April-September
as against the industry growth rate of 4.3 per cent. The
despatches of India Cement have shown 20-per cent growth
in September 2003 and a cumulative growth of 3.7 per cent
in April-September 2003.
cement prices in Mumbai have increased by 6 per cent on
a yoy basis from Rs 133 per bag to Rs141 per bag whereas
the prices in Kolkata have increased by 3 per cent yoy
from Rs 155 per bag to Rs 160 per bag. But the prices
in Ahmedabad, Delhi and Hyderabad have decreased by 10
per cent, 9 per cent and 14 per cent respectively on a
says the demand supply mismatch in the industry is the
reason for fluctuation in the cement prices in the domestic
cement industry. During the monsoon period there is always
a mismatch as the construction activity throughout the
country is virtually at a standstill. However, post-monsoons
the cement prices will go up by an average of Rs 10 per
bag due to high demand. "The cement companies, too,
have to cut production to keep prices up."
Shroff, a fund manager with BOB Mutual Fund, says from
a long-term perspective the cement industry looks strong
with further consolidation happening in the industry.