Jayakumar Krishnaswamy, Managing Director of the company, said demand momentum has been visible across regions after a brief slowdown at the start of the month. “As we start the month of April, other than the first three or four days, demand has generally picked up in all the markets,” he told CNBC-TV18, adding that core eastern markets as well as parts of western and central India are seeing healthy traction.
He said states such as Bihar, West Bengal and Chhattisgarh have reported steady demand, while markets in western Madhya Pradesh, Gujarat and Rajasthan are also performing well. “As regards growth going forward, I am looking at industry growth anywhere between 7% to 9%, and certainly Nuvoco will be in the same range of about 7% to 9% during FY27,” Krishnaswamy said.
On pricing, the company has already implemented hikes earlier this month, although only part of the increase has been absorbed so far. Price increases of ₹10–₹15 per bag have been taken in the trade segment across regions, while non-trade prices have been raised by about ₹20. “As we stand today, we have seen absorption of about ₹10 in all the markets for the first 15 days of April,” he said, adding that further hikes may be required to offset rising input costs.
The company is facing cost pressures of around ₹100–₹120 per tonne, driven largely by higher packaging costs, fuel prices and other raw materials. Packaging bag costs alone have risen by ₹80–₹100, with fuel adding another ₹15–₹20 and gypsum and other inputs contributing ₹8–₹9.
Despite this, Krishnaswamy said profitability is expected to remain broadly stable on a full-year basis. “There could be a bit of a transient phenomenon in the first few weeks until things settle. However, I am looking at a number comparable to last year’s on a full-year average,” he said. The company is targeting EBITDA of over ₹900 per tonne for FY27, supported by operational efficiencies and an expected easing of cost pressures in the second half of the year.
On operations, the company remains confident of turning around the Vadraj asset, with commissioning of the Surat plant expected by the second quarter. Clinker movement from Kutch to Surat will be supported by both sea and upcoming rail connectivity, while a new bulk terminal near Ahmedabad will aid distribution across Gujarat.
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Krishnaswamy said cement production from Surat is expected to begin by mid-to-end Q2, with clinker production in Kutch likely to start in the second half of the year.
He also dismissed any speculation around an exit from the cement business, reiterating the company’s expansion plans. “Our focus is on expanding the business, and we are committed to growing this cement business,” he said, adding that further capacity expansion, particularly in northern markets, will be taken up after the completion of the Vadraj project.
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