Gujurat Ambuja exports to offset monsoon slump

Gujarat Ambuja Cements Ltd, India’s third-largest cement maker, expects increased exports and strong demand from the infrastructure segment to help grow sales during the traditionally slow monsoon season.

"Cement demand in our markets is very firm and the export scenario also seems good," Jayesh Doshi, assistant vice president for treasury, told Dow Jones Newswires Tuesday. "We expect this trend to boost sales despite the rains, which normally lowers cement consumption."

Gujarat Ambuja Tuesday reported a 20% on-year rise in July cement sales to 1.14 million metric tons. Doshi cited a 30% rise in exports and 18% growth in local sales as the main reasons for the higher sales. "Also, the fact that the monsoon was delayed helped to boost sales in July," he said.

The main markets of Gujarat Ambuja, which produces 13.5Mt of cement a year, are the western and northern regions of India. In the April-June quarter, cement demand in these regions grew between 8 per cent and 8.5 per cent, compared with 4.5 per cent to 5 per cent in the eastern region.