Economy

Cement cos’ honchos meet Gadkari to allay concerns on rising prices

Our Bureau Mumbai | Updated on January 12, 2018


The members of Cement Manufacturers’ Association, including top executives of cement companies, met the Minister for Road, Transport and Highways Nitin Gadkari on Thursday to allay concerns on rising prices.

The Government felt that cement companies are taking advantage of rising demand from road projects and increasing prices despite no substantial rise in input costs.

Contrary to public perception, the Association said the current cement prices are much lower than what it was two years ago.

The demand in the last five years has recorded a CAGR growth of just 1 per cent as against an inflation of 7 per cent.

The members of the delegation included N Srinivasan, Managing Director, India Cements, HM Bangur, Managing Director, Shree Cement, KK Maheshwari, Managing Director, UltraTech Cement, Ajay Kapur, Managing Director, Ambuja Cement, Mahendra Singhi, Group CEO & Wholetime Director, Dalmia Cement, Ujjwal Batria, Country CEO & Managing Director, Nuvoco Vistas Corp (formerly Lafarge) and Aparna Dutt Sharma, Secretary General, CMA.

On the increasing competition, the delegation members said there are over 40 brands in the marketplace selling cement in the price range of ₹240-380 per 50-kg bag.

Highlighting the skewed export duty structure, the delegation said Pakistan exports its surplus cement to India duty-free but levies an import duty of 17 per cent when Indian companies export to that country.

Public perception

While being receptive to the cement industry’s concern, Gadkari urged top officials to work towards improving public perception of the industry. He urged the industry to devise a scientific mechanism to arrive at a transparent price for the National Highways Authority of India.

Published on June 01, 2017

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