Mumbai: Indian cement industry hopes to lower costs from discounts offered on freights booked during the lean season but do not expect to gain much from the freight rate cut on fly-ash, experts said.
Cement companies are expected to gain at least Rs50-100 million each from the discounts on freights booked during the lean season, said Vinod Juneja, deputy managing director, Binani Group, founder of Binani Cements Ltd
He, however, said the exact addition in the level of profitability would depend on the size of each company.
On the reduction in the freight rate of fly-ash, Juneja said it would mostly help the power plants more as cement made using fly-ash were generally of not good grade.
“Its used mainly for plastering and not for laying the foundation of a building,” he said.
“The overall measures will lower our input costs and help balance out other costs,” said Vinay Bawri, chairman, Vinay Cements Ltd.