Quake — Cement cos to review prices

Asked if the group would raise the production at group’s cement units to meet the demand, he said “we will not change policy and plants are already working close to their capacity.”

Meanwhile, Gujarat Ambuja Cement Ltd said its facilities including manufacturing units and sea terminals at Surat and Muldwarka had not suffered any damage in the catastrophic earthquake and were functioning normally.

General manager GACL of Jayesh Doshi said, “it is too early to comment on rise in demand for cement for construction and review of prices and production.”

Meanwhile, cement companies stocks remained firm in early trading on expectations that the severe damage in Gujarat will boost construction activities and demand for cement. Cement shares came off later in the day.

The shares of Larsen & Toubro, India’s largest cement maker, Grasim Industries, the third-largest cement, and No. 4 Gujarat Ambuja Cements all jumped, and then slumped as analysts expressed doubt cement sales would increase anytime soon.

"I wouldn/t read too much into the situation. Movement of cement from plants in Gujarat could be affected because of the damage to the surrounding infrastructure," say analysts. However, analyst added that there would be massive requirements of cement in order to rebuild the area.

Gujarat Ambjua Cement was the big gainer – up 4.49% to Rs 194.50 on a volume of almost 5 lakh shares in the first half-hour of trading. In other cement shares, ACC was up 2.85% to Rs 178.50, L&T was up 1.75% to Rs 246.70 and Kesoram Industries was up 1.38% to Rs 40.30. In second line cement shares, Gujarat Sidhee Cement was up 7.14% to Rs 6.75, Birla Corporation was up 2.56% to Rs 20 and Madras Cement was up 1.45% to Rs 5,344.90. Shares of companies which are leading suppliers of cement in the state like Gujarat Ambuja Cement were among the big gainers in cement scrips. In second line cement scrips, Gujarat Sidhee Cement which has its plant in the state was also a big gainer in percentage terms.