See cement price hike of Rs 10/bag in western India:Kesoram

In an exclusive interview with CNBC-TV18, Yashwant Mishra, Senior Joint President & Marketing Head, Kesoram & Mangalam Cement, speaks about the cement sector.

Here is a verbatim transcript of an exclusive interview with Yashwant Mishra on CNBC-TV18. Also watch the accompanying video.

Q: The prices have been hiked between Rs 5-10 per bag and Pune prices are perhaps Rs 10-15 a bag, regionally what is the demand supply situation that you are seeing and where is the maximum pressure if we go regionally across India?

A: The maximum pressure you see is in Andhra because after the death of Mr Reddy, the government demand has totally stopped and the flood has also hit very hard, so Andhra Pradesh has been hit very badly.  

Q: So are prices falling there or are they rising?

A: They have already fallen by Rs 60-70 from the peaks. Now for the first time there is an increase.  

Q: How do you see prices shaping up from here on? So where are you likely to see price hikes? Will it also be in the North and the West?

 A: This period is the peak period for cement industry and demand should come and it would be better and the price would go up and you see in Andhra the prices are rock bottom that Cement was sold as low as Rs 130 per bag.

Q: What about Gujarat and Maharashtra how much of price rise has happened in November and how much you see it happening in the next month?

A: This should increase in next month by minimum Rs 5-10 per bag.

Q: Only in the west?

A: Yes in West specifically and in Andhra it will depend on government demand and if the demand-supply situation improves then Andhra will also pick up.

Q: In the west how much is it off its highs? What were the highs they touched in 2008?