Corporate Results of over 2500 companies Friday, October 22, 1999
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Strike takes its toll on cement despatches 

Girish Chadha  
New Delhi, Oct 21: Cement despatches to Delhi from neighbouring states saw a drastic fall on the first day of the truckers' strike. Supply in the next few days is also expected to remain low.

According to industry sources, loading of cement on trucks from the various plants in Rajasthan as well as Madhya Pradesh has almost stopped.

However, a few cement manufacturers have started routing despatches through the railways. Several manufactures send as much as 50 to 60 per cent of their total cement production through railways, said sources.

Industry officials were of the view that the strike called by the truck operators was "not called for" as the freight rates had been increased recently.

"If the customers have also accepted the price increase as a result of hike in freight charges, why should the truck operators have a problem now", said a senior executive of a cement company.

If the strike by the truck operators continues for long, cement despatches will remain low resulting in further pressure on the profitability of several companies, he added. JK Cement's joint president (commercial) Shailendra Chouksey said the company's despatches had practically stopped. "We hope the strike finishes soon as most of the manufacturers have nothing to fall back upon", he added.

DLF Cement managing director AS Minocha said the company's despatches had also fallen by about 40 per cent. However, since cement is not a perishable item, many companies will have no option but to build their inventory, he said. Industry officials see no immediate increase in cement prices. "There is no supply coming in at all for almost all the manufacturers and no one in particular is in a position to take advantage and increase the prices", said Minocha.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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