By: Chandan Kishore Kant
Source: http://www.business-standard.com
Category: Investment In India
French cement major Vicat has joined Swiss major Holcim in advocating higher prices for the building material.
Markus Oberle, country head, Vicat group (India), told Business Standard, “The minimum price of cement (50 kg bag) should be Rs 300 in India. The cost pressures are on a rise and there are several challenges for the industry here.” Last year, Vicat had taken majority stake in Andhra-based Bharathi Cement.
Paul Hugentobler, member of executive committee of Holcim, in a conversation with this paper, had said there could not be any escape from price rise. This was later advocated by ACC, one of its group companies in India. ACC’s top official had wished to sell cement at Rs 300 a bag.
Currently, the all-India average price is at an all-time high of Rs 280 a bag. The sharp rally post-monsoon happened when the industry was struggling to achieve half of its estimated growth target of 10 per cent. Vicat group’s Bharathi Cement has an overall capacity of five million tonnes per annum. It plans to take its capacity to 10 million tonnes by FY16. Recently, the company made its entry into Mumbai, the largest market in the country, with a consumption of seven million tonnes a year. Vicat plans to sell 300,000 tonnes in the Mumbai market.
Holcim, which owns ACC and Ambuja Cements, commands a capacity of close to 55 million tonnes. German major Heidelberg, Portuguese company Cimpor and French player Lafarge are among the foreign players which have entered the Indian cement space in the last decade.
Though players want a further rise in prices, industry analysts differ. According to them, cement prices have seen a sharp rally over the recent months. But, they add, it looks difficult to continue with the same rally, as demand forecasts remain weak.
Till October, the industry’s growth was less than three per cent. In FY11, the sector witnessed the decade’s lowest growth of less than five per cent and cement makers expect the current financial year to be worse.
The current annual capacity of the cement industry is 300 million tonnes, second-largest in the world after China.
Source: http://www.business-standard.com/india/news/foreign-cement-majors-demand-high-prices-in-india/459439/
Source: http://www.business-standard.com
Category: Investment In India
French cement major Vicat has joined Swiss major Holcim in advocating higher prices for the building material.
Markus Oberle, country head, Vicat group (India), told Business Standard, “The minimum price of cement (50 kg bag) should be Rs 300 in India. The cost pressures are on a rise and there are several challenges for the industry here.” Last year, Vicat had taken majority stake in Andhra-based Bharathi Cement.
Paul Hugentobler, member of executive committee of Holcim, in a conversation with this paper, had said there could not be any escape from price rise. This was later advocated by ACC, one of its group companies in India. ACC’s top official had wished to sell cement at Rs 300 a bag.
Currently, the all-India average price is at an all-time high of Rs 280 a bag. The sharp rally post-monsoon happened when the industry was struggling to achieve half of its estimated growth target of 10 per cent. Vicat group’s Bharathi Cement has an overall capacity of five million tonnes per annum. It plans to take its capacity to 10 million tonnes by FY16. Recently, the company made its entry into Mumbai, the largest market in the country, with a consumption of seven million tonnes a year. Vicat plans to sell 300,000 tonnes in the Mumbai market.
Holcim, which owns ACC and Ambuja Cements, commands a capacity of close to 55 million tonnes. German major Heidelberg, Portuguese company Cimpor and French player Lafarge are among the foreign players which have entered the Indian cement space in the last decade.
Though players want a further rise in prices, industry analysts differ. According to them, cement prices have seen a sharp rally over the recent months. But, they add, it looks difficult to continue with the same rally, as demand forecasts remain weak.
Till October, the industry’s growth was less than three per cent. In FY11, the sector witnessed the decade’s lowest growth of less than five per cent and cement makers expect the current financial year to be worse.
The current annual capacity of the cement industry is 300 million tonnes, second-largest in the world after China.
Source: http://www.business-standard.com/india/news/foreign-cement-majors-demand-high-prices-in-india/459439/
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