Cement prices up by Rs 7

Subhadip Sircar

Mumbai, Jan 1: With the cement sector witnessing a sustained growth phase, cement manufacturers have gone in for another round of price increase in the new year. Cement prices in Mumbai have been hiked by Rs 7 from Tuesday. This is the third round of price increase by the manufacturers since December, the previous two also being in two equal tranches of Rs 7 each.

Cement prices in Mumbai are now in the range of Rs 167-169 in Mumbai for the wholesale market. Larsen & Toubro, which is the premium brand in the Mumbai market is at Rs 169 level, while the other major brands are around Rs 2 lower. Retail prices will now be in the range of Rs 182-185.

“The demand situation in Mumbai, which is the country’s largest cement market is picking up” , according to a dealer.

While most of the infrastructure sectors in 2001 saw a slump, the cement industry has witnessed a turnaround. From a negative two per cent growth in the last fiscal, the industry has clocked a growth of 5.68 per cent during the first eight months of the current fiscal.

While the infrastructure sector witnessed a 3.4 per cent growth in November 2001, the cement sector posted 7.9 per cent growth for the same month this year.

Cement production rose by 7.54 per cent at 8.27 million tonne in November as against 7.69 million tonnes in the same month last year.