Ambuja Cement sales stood at 1.66 million tonnes (mt) of cement in December against production of 1.63 mt. On a year-on-year basis, both production and sales were up 12% in December. In 2008, the company sales were up 5.28% at 17.76 mt against 16.89 mt logged in the same period last year. Production rose 5.19% to 17.74 mt (16.87 mt) in 2008. While ACC produced 1.91 mt, it sold 1.90 mt in December. In the year 2008, the company production was up 4.62% to 20.84 mt (19.92 mt), while dispatches improved 4.92% to 20.86 mt (19.88 mt).
Under the second stimulus package the Government has re-imposed CVD (countervailing duty) and special CVD on imported cement, thus increasing the landed cost of cement. The primary benefits would be felt in regions such as Punjab, Haryana, Gujarat and parts of western Maharashtra (port-based imports) where cement is being imported from Pakistan. Though the imports are not substantial, prices were under pressure in northern region besides Gujarat and western Maharashtra due to the duty exemptions. With re-imposition of duties, we expect prices to increase marginally in these regions. UltraTech and Ambuja Cement, Shree Cement, Binani Cement which have substantial market share in the above mentioned regions, will get benefits.
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