Indian real estate developers and infrastructure companies reeling under high debt loads will soon witness their construction costs escalating as cement companies are contemplating a price increase of Rs. 8 to10 per 50 kg bag as early as February, 2012 counting on a revival in demand and as a buffer against escalating input costs.
Mr. Vinod Juneja, MD, Binani Group of Industries said," Demand has grown by around 7 to 8% from a year ago in January, (2011)"
Cement demand has turned around across regions. January-March is the peak season for cement companies in India and are witnessing demand across regions including south India.
Only north has been little subdued so far due to severe winter but is seen improving going forward.
Bombay based Cement Stockists & Dealers Association said,''Cement companies are contemplating a price hike of Rs. 8to 10 per bag mainly in western and northern India."
High input costs of items such as coal and transportation have also led companies to push through price hikes so as to protect margins. Now, a 50 kg bag of cement costs about Rs. 260 to Rs. 280 pan India.
Mr. Vinod Juneja, MD, Binani Group of Industries said," Demand has grown by around 7 to 8% from a year ago in January, (2011)"
Cement demand has turned around across regions. January-March is the peak season for cement companies in India and are witnessing demand across regions including south India.
Only north has been little subdued so far due to severe winter but is seen improving going forward.
Bombay based Cement Stockists & Dealers Association said,''Cement companies are contemplating a price hike of Rs. 8to 10 per bag mainly in western and northern India."
High input costs of items such as coal and transportation have also led companies to push through price hikes so as to protect margins. Now, a 50 kg bag of cement costs about Rs. 260 to Rs. 280 pan India.
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