“The industry will be adding capacities of around 10-15 million tonnes over the next five years. There are around 50-60 players in the two states and they have a total capacity of 75 million tonnes, of which currently 70-75% is being utilised. With the elections in Telangana over, we expect the infrastructure building activity to pick up again, leading to better utilisation of our capacities,” a representative of Kalburgi Cement Pvt Ltd said.
FCC president and founder Pratab Padode pointed out that while the industry has been battling rising costs of raw materials, energy and transportation, among others, the average price of a 50-kg bag of cement (which is at Rs 280-320 in Telangana) has not changed much in the last decade, putting pressure on manufacturers.
Padode was speaking on the sidelines of the curtain raiser of First Construction Council (FCC)’s 10th edition of Cement Expo International Exhibition that will be held on December 20-21 in Hyderabad.
He said the cement manufacturers will consider reviewing prices in the next three to four months once coal prices stabilise.