A sharp increase in polymer granules, petcoke, and gypsum prices has pressured margins, forcing price hikes across trade and non-trade segments. The company is also exploring alternative fuels and materials to manage costs.
Nuvoco Vistas Corporation Ltd, the cement arm of Gujarat-based Nirma Group, has raised cement prices by ₹10 per bag in April, as the Iran conflict disrupts crude-linked supply chains and pushes up costs of packaging materials, fuel and imported gypsum.
Managing Director Jayakumar Krishnaswamy said the increase is largely driven by a sharp spike in polymer granule prices used in cement bags, along with rising petcoke and gypsum costs—key inputs in cement manufacturing. “Already we are looking at ₹100 per tonne increase due to packing bag cost increase and (polymer) granule costing. While in April we are looking at ₹100 per tonne increase in packing bag cost, in May and June it could remain at this level or go higher,” he told investors on Wednesday evening.
The cost pressure intensified after polymer granule prices—used to manufacture cement packaging bags—rose sharply amid crude-linked disruptions. “In the month of March, we had a sizeable impact that came from the packaging bags and granules. The granule prices in the market that was at ₹99 per kilogram in February has shot up to ₹155 per kilogram which resulted in higher cost of packing-bags,” Krishnaswamy said. He warned that supply disruptions could worsen. “If the conflict (in Iran) were to continue… we are going to have issues with incoming crude… there is a general shortage of granules in the market,” he said.
With limited ability to absorb input cost inflation—particularly in packaging—pricing remains the primary lever. “Not possible to mitigate the cost of the bags and can only be offset by price increase,” Krishnaswamy said.
Gypsum, used to regulate cement setting time, is also facing cost pressures due to import disruptions. “The cost of mineral gypsum… we can see close to ₹20 per tonne increase because of rising import cost… most of which comes from Oman and supply lines are cut,” he said.
“We are trying to see how we can replace mineral gypsum with FGD gypsum,” he added, referring to gypsum derived from flue gas desulphurisation processes at power plants.
Petcoke, a key kiln fuel in cement manufacturing, is becoming more expensive, prompting the company to reduce its usage and shift towards domestic coal. “More than 70 per cent of the sales happen through the east market… we are continuously reducing the use of petcoke,” he said. “At Arasmeta and Sonadih, we are reducing petcoke consumption to less than 20 per cent from 25 per cent and in Risda from 35 per cent to less than 30 per cent,” he said. In the north, “petcoke consumption from 55–60 per cent has been brought down to 50 per cent and we are further reducing it to 45 per cent,” he added, with new coal sourcing arrangements and alternative fuels like lignite being evaluated. Fuel costs are expected to increase further, despite optimisation efforts. “It will have an impact on the energy cost of the company,” he added.
The company has implemented price hikes across both trade (retail dealer-led sales) and non-trade (institutional and bulk buyers) channels. “During the months of March and April… we have taken price increases in both trade and non trade channels in all our markets. In Eastern markets we have taken a price increase of ₹10 per bag… on the non trade we have taken a price increase of close to ₹20 per bag,” he said.
“On the North side… we have taken a ₹10 price increase in trade and in non trade close to ₹15 price hike in Gujarat and ₹10 in Rajasthan,” he added.
Published on April 16, 2026
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