Cement: Holcim Increased Prices while Lafarge Keeps Unchanged

From 1 January 2013, the price of cement from Holcim (Mauritius) Ltd will be higher by 6.6%. This increase will cover both products cement, Ordinary Portland Cement is the (OPC) and Ecocem, ecological cement, which will be sold at the same price. The price of bulk cement will he, to Rs 4,163 per tonne in the factory.

Side Lafarge (Mauritius) Cement Ltd, Darshan Baijnath, the Sales and Marketing Manager, says that the plant "does not increase its prices." The cover 50 kg Lafarge currently sells for Rs 195. "Like all companies, we know an increase in our production costs. However, we prefer, for the time being, to absorb this growth, "emphasizes our interlocutor.

The management of Holcim indicates that this increase occurs due to the increase in fixed costs, "improving Ecocem, which passes into a higher strength class, and during the rise of the dollar against rupee which is devalued. " This results in devaluation that "since Jan. 2012, cement costs us almost 6% more than in January of this year," said the cement in a press release.

But in the meantime increase next January, some traders do not they may "block" part of their stock to sell it once the price increase effective? "It's very unlikely," says Jayen Mareemootoo, Communication & Marketing Manager of Holcim (Mauritius) Ltd. He explains that for storing a large amount of cement, a large area is needed. He stated, however, that the plant will be "very vigilant" to prevent this.