The Aditya Birla Group
Cement production in November has fallen 8.30 per cent to 2.34Mt against 2.52Mt in October. Consequently, dispatches have dipped 10 per cent to 2.29Mt against 2.55Mt in October.
“UltraTech faced workers unrest at its Awarpur (in Chandrapur district of Maharashtra) unit, but I’m not sure how much impact it had on the company’s performance,” said cement analyst with a broking firm. Attempts to reach company officials failed.
The stalemate at Ultratech Cement Works plant at Awarpur ended on November 25 after the agitating workers withdrew the strike following an assurance by the management to fulfil their demands.
“Apart from considering other wage-related demands, the management has assured to reinstate the Executive President of L&T Cement, Mr Shivchandra Kale. Mr Kale’s suspension was also one of the vexed issues which led to the strike,” according to newspaper reports. Replying to the question that when the plant will start production, the Vice-President (HR), Mr Anil Chopra, had said “the exact position (on when production will restart) will be clear only after the assessment of the damage to the machinery.”
Ultratech Cement in September informed the BSE that heavy rains in the Amreli district of Gujarat have resulted in suspension of production since September 25.
“The company is assessing the losses, if any. However, the plant is adequately covered under insurance. Efforts are on for starting operations at the earliest,” it said.
The company’s production between April and November has moved up 4.18 per cent to 20.07 mt against 19.27 mt logged last year. Dispatches during the same period grew 3.67 per cent to 19.93Mt against 19.29Mt last year.
The Grasim stock on BSE closed marginally lower by 0.68 per cent at Rs 3,813, while UltraTech closed flat at Rs 999.