Cement firms in India increase cement costs as input prices inflate
Cement

Cement firms in India increase cement costs as input prices inflate

Cement firms across India have raised cement prices by Rs 10-40/bag in October as input costs have inflated.

According to cement dealers, the rise in prices is higher in Mumbai and Gujarat area, where the increase is Rs 40/bag, while in North and South India, the surge in costs is about Rs 10-20/bag. A cement bag weighs 50 kg, and the average cost of a cement bag is about Rs 375 across India.

Analysts said that while the input price inflation is one of the reasons for the cement firms to raise costs in October, an increase in demand coming from the realty sector and the government's push on infrastructure is another reason.

Cement firms had been planning to increase the costs of their products in the July-September quarter as well but could not do much due to the seasonality of low demand. During July-September, cement costs usually correct 2-3% quarter-on-quarter due to lower demand because of monsoons in the period.

But, this time around, dealers say that the firms might further raise costs by 10-15% during October-December to pass on the increase in input costs and preserve their margins.

As per a report by Emkay Global Financial Services dated September 6, In July-September, average pan-India costs likely dipped 3% quarter-on-quarter, which is additionally likely to have kept cement firms' margins under pressure for the quarter.

But, the brokerage believes that margins are likely to bounce back with demand and cost recovery in the second half of the current financial year.

Image Source


Also read: Cement production slumps 12% in Q1 FY22: ICRA report

Also read: Cement prices in August fell by 3% to Rs 328 per 50 kg

Cement firms across India have raised cement prices by Rs 10-40/bag in October as input costs have inflated. According to cement dealers, the rise in prices is higher in Mumbai and Gujarat area, where the increase is Rs 40/bag, while in North and South India, the surge in costs is about Rs 10-20/bag. A cement bag weighs 50 kg, and the average cost of a cement bag is about Rs 375 across India. Analysts said that while the input price inflation is one of the reasons for the cement firms to raise costs in October, an increase in demand coming from the realty sector and the government's push on infrastructure is another reason. Cement firms had been planning to increase the costs of their products in the July-September quarter as well but could not do much due to the seasonality of low demand. During July-September, cement costs usually correct 2-3% quarter-on-quarter due to lower demand because of monsoons in the period. But, this time around, dealers say that the firms might further raise costs by 10-15% during October-December to pass on the increase in input costs and preserve their margins. As per a report by Emkay Global Financial Services dated September 6, In July-September, average pan-India costs likely dipped 3% quarter-on-quarter, which is additionally likely to have kept cement firms' margins under pressure for the quarter. But, the brokerage believes that margins are likely to bounce back with demand and cost recovery in the second half of the current financial year. Image SourceAlso read: Cement production slumps 12% in Q1 FY22: ICRA report Also read: Cement prices in August fell by 3% to Rs 328 per 50 kg

Next Story
Infrastructure Urban

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Next Story
Real Estate

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Next Story
Infrastructure Transport

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?