Financial Daily
from THE HINDU group of publications
Friday, January 05, 2001
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Financial Daily from THE HINDU group of publications Friday, January 05, 2001 |
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Larsen & Toubro: More capacity, but...
THE commissioning of a cement unit by Larsen & Toubro in Tamil Nadu may not have any influence on the demand-supply situation and cement prices in the near term.
This is attributable to the tight supply-side management which has been put in place to maintain prices at a high level. In this backdrop, the move may have marginal influence on the stock price in the near term. Larsen & Toubro now has a capacity of 15
million tonnes. But from a long-term perspective, the commissioning of the new unit close on the heels of a unit by Grasim could have implications for cement prices and profitability in the medium to long term. -- BL Research Bureau
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