Sales of cement takes a beating
The unseasonal rains in a few states and festival season have affected cement sales. Almost all the cement companies have reported a sharp fall in sales month-on-month.
The reason being shortage of labour during the festival season has slowed real estate activity resulting in reduced demand for cement. Besides, some of the companies have hiked their prices, resulting in lower demand.
Although prices declined to Rs 10-15 a bag across the country, it is still higher when compared with last year. The drop in prices comes after a rise of Rs 50-80 a bag in October 2010. The prices hovered at about Rs 240 a bag in November 2010 compared with Rs 245 a bag in the previous month.
Cement companies hiked prices in October 2010 on the basis of revival in demand post-monsoon.
The cement industry recorded sales growth of 17 per cent in October, according to the Cement Manufacturers Association.