Top cement makers cut costs to overcome lockdown impact

Top cement makers such as Ultratech, ACC, Ambuja Cement and India Cements have adopted cost-reduction strategies such as supply chain optimisation and overhead controls to overcome a sharp fall in sales. A large portion of the stringent cost reduction measures implemented in the first quarter of this fiscal year were short-term measures when the COVID-induced lockdown curtailed construction activity, but some strategies are likely to be retained in the longer term.Domestic demand and average volume sales of cement have fallen by 15-20 per cent since the beginning of the lockdown, according to ratings agency ICRA. However, as reported, analysts warn that there could be limited room for savings in power and fuel costs in the ongoing quarter due to rising pet coke and diesel prices.