The Cement Mystery

One reply on “The Cement Mystery”

Has any body wondered what is the cost of per bag of cement or for that matter, what is the profitability of cement companies/cement industry in India. Roughly, 6 out of 10 years, 60 to 70% cement companies in India incur losses. They get only 3 to 4 years in a decade to make some profit and to recover their past losses in order to survive and make further investment. Do you understand that if an industry does not make adequate profit, it will not attract any further investment which will create scarcity of the product and thereby increasing prices beyond imagination (remember old command and control era wherein no new licenses were given for decades leading to scarcity of almost any and all sundry products in this country including sugar, cooking coal, food grain and even match stick and of course Bajaj scooters having a waiting period of more than a decade). Politicians and the public at large must allow industries to make reasonable profit to sustain and to make further investment for the growth of the country.

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