Economy & Market
Chettinad controlled dispatches keep prices high
Chettinad Cement has benefited from controlled cement despatches, helping it keeping prices high. Cement despatches in south grew barely 1.1 per cent y-o-y in the June quarter of this financial year. Cement prices are currently at Rs 260-265 per bag, which is broadly steady despite the monsoon season. The company's installed cement capacity was 8.5 million tonne at end of March 2011, a jump of 325 per cent from March 2007. The company's key markets are Tamil Nadu and the adjoining areas. Chettinad is setting up a green field cement plant in Karnataka with a capacity of 2.5 million tonne, and has placed equipment orders for the plant. Other large players in south include India Cements, with a capacity of nearly 14 million tonne at end of FY 11, and Madras Cements with 10.5 million tonne.