Cement prices may rise 2-3% in a yr: Jaiprakash Associates

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Cement prices may rise 2-3% in a yr: Jaiprakash Associates

Jaiprakash Associates has commissioned 21 MT extra capacity and expects to clock in a growth of 42% in FY10. Executive chairman of Jaiprakash Associates Manoj Gaur said he expects to see a growth of 37% in FY11. Gaur said in all liklihood, cement prices will go up by 2-3% in a year's time

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Jaiprakash Associates (Jaypee)  is optimistic about the cement business. The company has commissioned 21 MT extra capacity and expects to clock in a growth of 42% in FY10. Speaking to CNBC-TV18, executive chairman of Jaiprakash Associates Manoj Gaur said he expects to see a growth of 37% in FY11.

Speaking about the recent price trend, Gaur said in all liklihood, cement prices will go up by 2-3% in a year's time. Average price in western region is currently ruling at Rs Rs 260-275/bag. In Andhra Pradesh, cement prices are facing some pressure at  Rs 175-190/bag. According to Gaur, demand in the northern region has been good where prices are ruling at Rs 230-245/bag. Prices in east India stands at Rs 260/bag and he expects Central India to grow at 20%. Overall, in FY11, JP Associates expects cement revenue above  Rs 10,000 crore. At current GDP levels, Gaur sees cement consumption at 11%.

Gaur also talked about the company's fund raising plans. He said that there were no plans to sell treasury shares and that the proposed IPO of Jaypee Infra was the only mode of planned fund raising. Jaypee Infra IPO was likely in April, he added.