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Mumbai , Dec 2

IT appears that cement majors are trying to contain production, driven by falling cement prices especially in the western region of the country.

The evidence to this lies in the fact that three out of the four majors have reported a higher growth in despatches than in production for November this year, against the same month the previous year, with Larsen & Toubro reporting a negative growth in production, pointed out an industry analyst.

ACC has reported an increase of 14 per cent in despatches at 12.19 lakh tonnes (10.69 lakh tonnes); whereas production, at 11.65 lakh tonnes, rose only 9.3 per cent.

Despatches, at 13.5 lakh tonnes (12.9 lakh tonnes), at L&T showed a 4.6 per cent increase; whereas production was cut back by 4.8 per cent at 9.9 lakh tonnes (10.4 lakh tonnes).

Gujarat Ambuja has reported a 13.1 per cent increase in shipments at 8.55 lakh tonnes; but only an 8.4 per cent increase in production, at 8.22 lakh tonnes.

Only Grasim has reported the reverse pattern, despatches rising 7.58 per cent, to touch 10.12 lakh tonnes; and production, at 10.17 lakh tonnes, rising 8.88 per cent.

Analysts said cement majors would have to contain production if they are to salvage their realisations.

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