Cement despatches slow down in February

Gujarat Ambuja Cements' despatches have slumped 11 per cent at 11 lakh tonne in February compared with 12.41 lakh tonne recorded in the year-ago period.

The company's production was lower by 10 per cent at 11.01 lakh tonne against 12.28 lakh tonne in the corresponding month of the previous year. Gujarat Ambuja officials declined to comment on the company's performance.

However, a cement analyst said, "Owing to severe cold in the northern parts of the country and snow in some areas, construction activity was impacted. Companies such as Gujarat Ambuja, which have a strong presence in that regions, have posted lower sales."

Meanwhile, the Associated Cement Companies has registered a 2.9 per cent rise in its cement sales at 13.72 lakh tonne against 13.33 lakh tonne in the corresponding period of the previous year. Production for the period increased 5.3 per cent at 13.75 lakh tonne, compared with 13.05 lakh tonne in February 2004.

A company official said, "The increase in production is low owing to a very high base. February sales in 2004 were very good."

The industry clocked a growth of 10.4 per cent in despatches in January this year. The last few months have witnessed double-digit volume growth, resulting in a growth of 7.4 per cent in the last 11 months of 2004-05.