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We hosted a multitude of cement dealers from places and regions such as Hyderabad, Bengaluru, Kolkata, Patna and Vidarbha with respect to assessing the demand and pricing environment. While healthy demand in
most regions persists, sustaining price hikes remains the prime issue due to huge supplies and market-share wars. Key takeaways from the conference follow.

South. In the south, cement companies announced a price hike of Rs40-50 a bag. Dealers, however, believe only Rs10-15 would hold. Rural demand in Hyderabad has grown 25%, while commercial and residential demand in Bengaluru remained firm. Though currently an unstructured market, RMC sees good demand (fewer issues regarding water and sand requirements). Ultratech continues at the top, followed by Adani Cement. The price difference system has been removed by many companies (ACC/India Cements) in Bengaluru, though it still exists in Hyderabad.

East. In the east, cement prices have been hiked by Rs10-15 a bag. Low consumption, however, due to the coming West Bengal new year and the Id festival, according to dealers, would make it difficult for even such prices to sustain. Further, surpluses and market-share wars are sure to keep prices competitive. In FY23, cement volumes in the east grew 8-9%, WB volumes grew 4-5%, Chhattisgarh ~9-10%, Jharkhand flat, and in Odisha down 3%. Adani’s focus is on greater volumes where the proportion of non-trade sales has grown to 20%, from 5% pre-acquisition (Ultratech ~12%). RMC has become very popular in the last five years in most of the eastern region.

West. In Mumbai, demand has been strong, and companies are attempting to hike prices by Rs20-25 a bag. Such prices holding up, however, is the key. In Surat, of the Rs10 a bag hike, only Rs5 could be sustained. In Vidarbha, price hikes attempted by companies could not be absorbed. Further, high market-share competition among B and C grade resulted in price competitiveness, where the gap with the A brand widened to Rs80-100 a bag. On more non-trade price competition, the Adani Cement price difference to Ultratech widened to Rs10- Rs15, from Rs2–5 earlier. North. In the north, cement prices were raised by Rs10 a bag. Demand in Mar was lower than in Jan/Feb, curtailed by labour unavailable because of the festivals (Holi/Ramzan) and the marriage season. Demand is expected to improve if unseasonal rains do not occur.

North. In the north, cement prices were raised by Rs10 a bag. Demand in Mar was lower than in Jan/Feb, curtailed by labour unavailable because of the festivals (Holi/Ramzan) and the marriage season. Demand is expected to improve if unseasonal rains do not occur.

Central. In the central region, cement companies announced a price hike of Rs10- 15 a bag. Rs5/bag was rolled back in Mar in many cities due to festivals and off- season rains. Anaemic demand in the region persists due to funding issues and the absence of infrastructure projects.

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