- Jaiprakesh Associates reported an increase in cement sales in November 2009 of 48.77% y/y to 1.03 million t. The company has recently begun operations at its new 2.4 million tpa plant in western Gujarat. The Rs.15 billion plant forms part of the company’s expansion plan, which aims to bring capacity to 22.8 million t by March.
- ACC’s cement shipments fell 4.05% y/y in November 2009 to 1.66 million t and production fell 1.18% to 1.68 million t. For the period January – November 2009, production and sales increased by 3.01% and 2.69% respectively.
- Ambuja Cements saw a 2.7% increase in cement production, at 1.51 million t from 1.47 million t in November 2008, while shipments rose 4.7% y/y to 1.55 million t.
- Shree Cement’s November shipments rose 15.2% y/y to 7.09 lakh t from 6.15 lakh t in November 2008.
While some companies have performed better than others, the general growth is in line with expectations given the 7.9% growth experienced by the Indian economy in the second quarter.
Meanwhile, cement prices are on the rise having been falling steadily since August. Within the last two weeks, prices have begun to go up in the western and southern regions, with increases also expected in the northern part of the country. In Andhra Pradesh, prices had fallen to Rs. 135 – 140, not far off the Rs. 120 level that experts pinpoint as unprofitable. The price rise has been attributed to logistical problems – specifically a shortage of railway wagons, a recurrent problem in the country. This is likely to be a temporary hitch, meaning that the price increase will not be sustained, particularly given the capacity additions continuing around the country.