Economy & Market

Cement industry in AP continues to suffer

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Lower realisations and less demand for cement in Andhra Pradesh have suffered cement companies’ operation in the state. The price of cement in the state has corrected sharply by 10 per cent in last few weeks and is 25 per cent down from the peak levels of Rs 300 per bag.The fall in price in the state has been more due to entry of new players than due to seasonal reasons. For instance, JP Cement is selling cement at around Rs 210-220 per bag which is Rs 20-30 lower than what is charged by bigger players like Ultratech and ACC.The state has seen newer players and also the existing players expanding capacities due to huge availability of limestone, which is the primary material for cement.Andhra Pradesh, which accounts for 8-9 per cent of the total national cement consumption, has been a worrying issue for the cement companies having exposure in the state. Non-availability of sand led to inventory pile up for the companies three to four months back.

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