Construction activities have picked up well after the government increased infra spend at the onset of assembly elections in various states this year. Further price hike cannot be ruled out, said Shailendra Chouksey, Chairman and Managing Director of JK Lakshmi Cement, who is confident of logging in at least 12 per cent growth this year. Despite demand seen improving in medium term, Chouksey believes, it is better to maintain caution and hence the company has neither revised its Rs 2,000 crore capex plans, nor it is keen to enhance capacity aggressively. The company will go slowly in capacity addition as demand is yet to come at par with supply. Its 2.7 million tonne capacity in Chattisgarh will come on stream this year, taking the company’s total capacity to 5.3 million tonne per annum, he said. Our current capacity is capable of catering to higher needs, he said.
Last year, cement companies took a hit on their earnings as prices across states declined over 5 per cent year-on-year after the industry fair trade watchdog, the Competition Commission of India penalised 11 companies by over Rs 6,000 crore on cartelisation charges including Lafarge, JP Associates, Binani. Companies have taken up the case with the Competition Appellate Tribunal and have sought stay on the CCI order.