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Market Watch Birla anticipates a scenario surplus cement by 2010.
Market Watch Birla anticipates a scenario surplus cement by 2010. 
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| Birla anticipates a scenario surplus cement by 2010. |
| Saturday, 21 July 2007 | ||||||||
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These are likely to be commissioned over the next three years and could result in surplus scenario. This in turn will exert pressure in domestic prices from the middle of FY09.” Mr. Birla said he believes the demand for cement would grow around 10 per cent linked to GDP growth. “The government’s thrust on infrastructure development is encouraging. This signs bode well for the industries in the long run.” Mr. Birla said. The company produced 3.91 mmt of cement and the effective capacity utilized was 104 per cent. Mr. Birla said while domestic volume 3.67 mmt registered a growth of five per cent, exports were curtailed to cater growing domestic demand. The cost of production escalated by 11 per cent on quarter due to higher energy costs. Mr. Birla said a capex of around Rs. 3,300 crores has been earmarked, to be spent over next three years on these expansion and de bottlenecking. A fall of about 30 to 35 per cent is expected in the domestic prices of cement manufacturers get the license they have applied for the bureau of the Indian Standard(BIS) to market the cement in India. The Chinese cement will be available at Rs.170 per 50 kg bag which is currently at Rs.250 by the Indian cement manufacturers. This reduction in price is expected to decrease the construction cost of the Indian developers by Rs.40 per square feet. The Builders Association of India president, Anand Gupta, said , “Chinese cement manufactures like Yingde Dragon Mountain Cement and Longkou Fanlin Cement
Company have quoted our members, the CNF price of Rs. 140 per good quality cement bag weighing 50 kgs. After paying octroi, and the other import related charges, the 50-kgs bag would be at least Rs.80 less than the current price of an average quality cement bag retailed at Rs. 250 in India.”
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