Don’t Blame Cement Industry For Higher Construction Costs: N Srinivasan

The cement industry is not forming cartels and cannot be blamed for increased higher cost of construction, according to India Cements Ltd.’s Managing Director N Srinivasan.

Union Minister Nitin Gadkari had earlier warned cement manufacturers of stern action if they attempted to form cartels to hike prices of the key infrastructure commodity.

“The prices have gone up because demand is a little better,” Srinivasan told BloombergQuint, adding that cement prices have still not touched their peak. “The higher cement prices are a reflection of the demand-supply position.”

Srinivasan expects the prices to remain firm going forward.

Key Highlights:

• South and other markets have not had the benefit of strong infrastructure demand.
• Maximum beneficiary from the price of cement in terms of taxes is government itself.
• Expects marginally lower consumption of cement in areas with strong monsoon.
• Not privy to any formal communication from government on cartelisation allegation.
• Lobby group Builders’ Association’s concerns could be company specific.

Watch the full interview here: