Cement despatches rise 22% in April

Cement despatches by leading companies in April have increased between 14.1 per cent and 22.4 per cent.

Larsen & Toubro (L&T) tops the list with a 22.4 per cent growth in despatches.

The Aditya Birla flagship Grasim has recorded a 20.48 per rise in its despatches, while Gujarat Ambuja Cements' despatches have risen 18 per cent. ACC recorded a 14.1 per cent growth in its despatches for April.

A cement sector analyst said, "While the growth in April has been quite significant, it is not strictly comparable with the previous year's despatch figures since last April there was a transporters' strike leading to a low base."

Also, cement demand has been robust in the Gujarat market and the northern region, he said.

L&T's domestic despatches, which include that of its subsidiary Narmada Cement Company, were at 10.7 lakh tonne against despatches of 8.8 lakh tonne in the corresponding period of the previous year.

The company produced 12.4 million tonne of clinker in the month against 9.5 million tonne during April 2003.

According to an analyst, due to high demand in Gujarat, all the three plants of L&T in Gujarat have been functional leading to a high output and improved sales.

The company's total despatches, including exports in the month, were at 11.5 million tonne against nine lakh tonne, an increase of 27.6 per cent. Grasim's despatches stood at 11.11 lakh tonne compared with 9.22 lakh tonne in April 2003. Its production rose by 19.37 per cent at 11.06 lakh tonne against 9.27 lakh tonne.

Gujarat Ambuja recorded despatches of 13 lakh tonne in April including its subsidiaries Ambuja Eastern Cement and Ambuja Rajasthan Cement, against 11 lakh tonne in the corresponding period of the previous year. The company's production increased 21 per cent at 13.2 lakh tonne compared with 11 lakh tonne in the corresponding month of the previous year.

Meanwhile, ACC's despatches stood at 13.85 lakh tonne in April against 12.13 lakh tonne in April 2003. The company's production figures include that of its subsidiary Idcol Cement, which ACC acquired last year.

ACC produced 14.4 lakh tonne in April compared with 12.37 lakh tonne in the corresponding period of the previous year.