homeinfrastructure NewsHere’s what experts have to say about cement price hike and capacity utilization

Here’s what experts have to say about cement price hike and capacity utilization

Shailendra Chouksey, whole time director of JK Lakshmi Cement and Sanjay Ladiwala, cement expert spoke to CNBC-TV18 about the growth outlook for the cement sector and key triggers going ahead.  

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By Latha Venkatesh   | Surabhi Upadhyay  Feb 27, 2019 12:04:28 PM IST (Published)

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Shailendra Chouksey, whole time director of JK Lakshmi Cement and Sanjay Ladiwala, cement expert spoke to CNBC-TV18 about the growth outlook for the cement sector and key triggers going ahead.

"We haven't been able to cover cost inflation with the price hike. Input costs like fuel and logistics have dented profitability in Q3 of FY19," Chouksey said on Wednesday.
On the pricing front, Chouksey said, “As far as taking price up is concerned, I think it is a constant battle. What matters is whether the increased price remains on a sustainable note. We haven’t yet witnessed that and gradually as we are moving towards capacity utilization of about 80 percent or so in most the markets then the pricing power will get back.”
“So give or take a quarter or two, I am very bullish that the pricing power should be back with the industry which hasn’t had for 2-3 years in the past,” he added.
Talking about the price increase, Ladiwala said, “Prices have gone up particularly in the southern region. It was waiting to happen because they were affected by the north-east monsoon and the prices were supposed to be going up by end of January which they didn’t and they have just started moving up in February. So I would see a rapid increase in prices and a constant and steady there onwards.”

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