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

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->