Shree Cement's Bangur Says A Price Hike Of Rs 50 A Bag Is Needed To Beat Inflationary Pressure
Cement Industry Needs To Hike Prices To Beat Inflationary Pressure, Says Shree Cement's HM Bangur.
The cement industry needs to increase prices to offset inflationary pressure, according to HM Bangur.
The price hikes are "very important for the survival of upcoming capacities", Bangur, managing director at Shree Cement Ltd., said in an interview with BloombergQuint.
An increase of Rs 50 per bag could help close the gap with higher costs, he said. The prevailing pan-India price averages around Rs 350 for a bag of 50 kilograms. But Bangur isn't certain when the prices will be raised.
In the third quarter, Shree Cement's profitability fell missing estimates due to higher power and fuel expenses, and analysts cut their price targets on the stock.
Shree Cement expects 15% sequential growth in volumes in the ongoing quarter ending March. Volumes will be driven by higher demand in the eastern and northern markets, he said.
Shree Cement expects to expand its capacity by 30% over the next three years.
Watch the full interview here: