Cement cos hike prices Rs 30/bag as costs rise

Cement cos based in Andhra, Telangana up prices by Rs 30/50 kg Shree Cement, Ramco Cements, JK Cement, UltraTech, Orient Cement are the compaies to have done so

NEW DELHI: Cement companies based in Andhra Pradesh and Telangana have raised prices by 30 rupees per 50 kg bag, dealers told Informist.

The companies stopped dispatches from Wednesday night to implement the new prices.

The stock with new prices may be available in next 1-2 days, dealers said.

Following the price hike, cement companies are expected to sell 50 kg bag at 320-390 rupees, depending on the brand and location, dealers said.

Companies that have announced the price hike include UltraTech Cement Ltd, India Cements Ltd, JK Cement Ltd, NCL Industries Ltd, Sagar Cements Ltd, Ramco Cements Ltd, Dalmia Bharat Ltd, Shree Cements Ltd and Orient Cements Ltd.

"We are expecting cost increase of about 600 rupees per tn in Jul-Sep compared to Apr-Jun and we need to recover this at some point," the chief of a cement company based in Hyderabad said on condition of anonymity. The average increase in cost on each bag would be 35-40 rupees, he said. Though there could be some resistance from retail networks over the increase in prices due to fear of fall in volumes, companies are keen on the prices hikes, dealers said.

However, cement companies fear that there would be a steep fall in earnings before interest, tax and depreciation per tonne in JulSep due to increased fuel and other costs.