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Mumbai: The resignation of Holcim Group companies — ACC Ltd and Ambuja Cements Ltd — from industry body Cement Manufacturers' Association of India (CMA) has disturbed the depth of data and meaningful analysis of the cement industry, say experts and industry players. ACC and Ambuja have disassociated themselves from CMA effective from November 1, without furnishing any reasons behind the move. Analysts say with the major group moving out, about 20-25% of the detailed dispatch data will not be available and over a period of time, more companies might also move out.
However, all the cement players contacted by FE have indicated no plans to move out of CMA.
If sources are to be believed, the Holcim Group feels that disclosing too much of data could benefit their competitors. ACC Ltd had not been providing data to CMA from July onwards, whereas Ambuja Cement has stopped providing data to CMA from October onwards.
An e-mail query sent to Ambuja Cement did not elicit any response. ACC Ltd reverted back, saying, "We are unable to offer any comment on these questions."
CMA president Vinita Singhania was also not available for comment.
An investment banker not wanting to be identified said, "Though the Holcim Group companies might provide monthly dispatch figures on BSE, region-wise dispatch figures will not be made available now. Hence the quality of data will definitely get hampered."
ACC from the past two months has been reporting a y-on-y dip in its despatch figures by 2.4% and 0.58% y-on-y in September and October, respectively. Ambuja Cement dispatches for September dipped marginally by 0.73%, whereas in October, its dispatches grew by 2.81%.
Experts say the Holcim Group companies announced capacities have not yet come on stream, resulting in the cement majors losing their market share. At the same time, regional players have also expanded their capacities, thereby increasing their market share.
Holcim Group rival, the Birla Group, has reported a robust dispatch growth of 11.3% in
October, whereas its sales volumes during Q2 registered an increase of 23% at 4.56 million tonnes.
HM Bangur, CMD of Shree Cement, told FE, "Shree Cement is not moving out of CMA. Moreover, the cement industry body is much bigger than just data collection and it has lot of other activities as well." Bangur is a former president of CMA. Similarly, cement manufacturers Binani and Dalmia also showed no inclination to disassociate themselves from CMA.
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