Reliance Cement, an Anil Ambani-company, expects prices to rise Rs 15 during winter with the Modi government pushing for higher spending on infrastructure.
“We expect prices to cross Rs 350 per bag (50kg) as construction activity picks up. The government’s decision to turn roads concrete will give a boost to the sector,” Atul Desai, chief marketing officer of the company, said.
Reliance Cement, a wholly owned subsidiary of Reliance Infrastructure, is present in some eastern and central Indian states where cement bags are retailing at Rs 335 a kg.
The demand-supply situation, the key driver of cement prices, is balanced in these states where plants are operating at 75 per cent capacity compared with south India where the plants are unable to run beyond 50-55 per cent capacity.
Desai said his company had been able to scale up sales in six markets, including Bengal, where Reliance Cement has been launched. It entered Bihar through the Patna market earlier this week.
“Our products have been well received in the market. We hope to close the year with sales of 3 million tonnes,” Desai said.
The company produces 5.8 million tonnes of clinker at its Maihar facility in Madhya Pradesh.
It has three grinding units, including one at Durgapur, where it has entered into contract manufacturing with a local player.
Desai said Reliance Cement was on the look out for more such contract manufacturing deals.
Meanwhile, the cement sector grew 16.5 per cent in July even as core sector growth as a whole slowed to 2.7 per cent during the month.
During April-July, however, the eight core industries grew 4.1 per cent.
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