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

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Next Story
Infrastructure Energy

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Next Story
Equipment

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement