INPUT COSTS FOR CEMENT MANUFACTURING RISE SUBSTANTIALLY BY Rs11 PER BAG
Article Abstract:
In 1997-98, the input costs for cement manufacturing went up by around Rs11 per 50 kg bag thus eroding the bottomlines of most of the cement companies. The average manufacturing cost went up to Rs110 per kg during the year compared to Rs99 in 1996-97, but the average retail prices declined by around seven percent to nine percent. The power costs also went up by 24.2 percent to Rs4.10 per kwh in 1997-98 from 3.39 percent in 1996-97. Railway freight costs increased by 16.6 percent from Rs521.6 per tonne to Rs584.20 per tonne and the average distance covered for transporting cement is 750 km. The freight cost on coal also increased by 18.2 percent from Rs605.7 per tonne of cement to Rs703.5 per tonne. As coal, power, freight account for 65 percent of the variable costs, cement companies have been severely affected. (gsh)
Comment:
India: Input costs for cement manufacturing rises by around Rs11 per 50 kg bag in 1997/98
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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CEMENT Cos SET TO RIDE BOOM
Article Abstract:
The 1998-99 Budget's thrust on housing and infrastructure sectors are likely to improve the demand for cement. About 20,000,000 dwelling units are likely to be completed every year. Indian cement companies were demanding a countervailing duty of Rs800 per tonne on cement imports. The installed capacity of the cement industry in India was 105.3 million tonnes in 1996-97. Indian cement industry produced 76.2 million tonnes of cement in 1996-97 and despatched 76.1 million tonnes. (rk)
Comment:
India: Cement ind demands a countervailing duty of Rs800 per tonne on cement imports
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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