Mangalam Cement, which is controlled by the BK Birla group, has benefited from strong demand in the northern part of the country over the past few months. Cement prices have increased on a-per-tonne basis in this region during the current peak construction season.
According to brokerage house estimates, cement despatches in the northern region grew nearly 14% YoY between January and February 2011, significantly higher than the all-India growth during this period. This was due to a pick-up in government-funded infrastructure projects and real estate sector, coupled with dealer restocking. As a result, cement prices in New Delhi are currently at INR270/bag, a jump of nearly 20% from the levels at the end of the third quarter.
Mangalam Cement’s installed capacity was 2Mt at the end of March 2010, double from the level three years earlier. Its production facilities are located in Rajasthan. Mangalam’s key markets include Rajasthan, Uttar Pradesh and Delhi. The larger players in the northern region include Shree Cement whose capacity was 10.2Mt at the end of March 2010.