India Cements mulls price increase

Chennai: Cement maker The India Cements Ltd has drawn up plans to increase the price of cement sold per bag by Rs 55 which would be implemented in phases from June, a top official said on Friday.

The company also planned to 'monetise its assets' by selling some portion of 26,000 sq ft land owned by the company, which would be used for repayment of debts and for taking up improvements at its manufacturing facilities, India Cements Vice Chairman N Srinivasan said. "I am increasing the price of cement per bag by Rs 20 on June 1, by another Rs 15 on the 15th of June and another Rs 20 on the first of July," he said.

The increase in cement per bag should cover the cost increases the company was facing and the company's profit and loss account should look better, he said. Asked about some cement makers planning to cut retail price of cement per bag, Srinivasan said, "Please do not compare me with others. See, I have a job to do, my job is chief executive of a cement company. All costs have gone up and I have to do something (to increase the price), otherwise I will lose more money." To a query on the increase in the cement price would affect sales, he said it would not affect the sales and as India Cements has a "very good brand pull."