Nepal: Hetauda Cement sees improved pricing environment

Nepal-based cement producer Hetauda Cement Factory recorded a profit of NPR40m (US$382,292) in the last fiscal year and is now targeting a profit of NPR200m in the current fiscal thanks in part to higher cement prices.

The state-owned cement factory was forced to shut down operations for five months in the previous fiscal due to a shortage of coal triggered by the trade embargo.

However, optimism prevails for the year in hand due to a hike in cement prices. Although the cost of producing cement has risen to NPR654/50kg bag from NPR586 a year go, the retail price of cement has increased, according to Prem Shankar Singh, general manager of Hetauda Cement. “This hike in retail price will help us meet the target of generating profit NPR200m in this fiscal year,” said Mr Singh.

To increase profits the factory also plans to operate at 60-65 per cent of its capacity in this fiscal compared to 30 per cent last year. “If Nepal Electricity Authority provides power on a regular basis, we can achieve this target,” Mr Singh told the Kathmandu Post.