Cement makers to offer model for fair pricing

Cement industry is key to support India’s growth and development, and the manufacturers are committed to find solutions which make the sector sustainable while upholding the interest of the consumers. Minister Gadkari had concerns that with rising demand of cement for expanding road construction, the perception is that the Cement Industry was enhancing its prices, despite no corresponding increase in input costs, making current prices unjustified. 

The delegation met Gadkari to discuss solutions from both sides relating to the cement sector. Part of the delegation were N Srinivasan, Past President, CMA, and Vice Chairman-MD, India Cement, along with HM Bangur, MD, Shree Cement, KK Maheshwari, MD, UltraTech Cement, Ajay Kapur, MD-CEO, Ambuja Cement, Mahendra Singhi, Group CEO and Whole-time Director, Dalmia Cement (Bharat), Ujjwal Batria, Country CEO & MD, Nuvoco Vistas Corp  and Aparna Dutt Sharma, Sec Gen, CMA. 

The delegation provided clarifications on all accounts. Firstly, the current cost of cement, contrary to public perception, was lower than its cost in 2015. Secondly, in the last five years, there has been a CAGR increase of only 1% as against an inflation of 6%-7%. Thirdly, there are over 40 brands available in the marketplace with prices ranging from INR 240 to INR 380 per bag, thus offering a wide choice to the consumer in the market.