Cement industry posts 14% growth in despatches in Dec 2002

Nisha Das
03 February 2003

Mumbai: The Indian cement industry notched up a growth of 14 per cent year on year in despatches in December 2002 — the highest recorded in recent months. According to the Cement Manufacturers Association, despatches in December 2002 were 9.52 million tonnes — 14 per cent higher over the December 2001 figure of 8.35 million tonnes.

The production during December was 9.69 million tonnes, up 17.6 per cent from 8.24 million tonnes in December 2001. This was attributed largely to a revival in southern markets as also to an increased demand from the roads sector.

Says CMA secretary general A V Srinivasan: “If the trend of 11-12 per cent growth a month continues, we could close the year at 10 per cent growth.” While housing has been the key driver, there was also a boost from incremental demand from roads construction and demand pick-up from the southern states.

“Prices are down and housing loans are easily available at low interest rates. While the roads sector contributes around 4-5 per cent of consumption, the main consumption comes from housing construction and repairs,” says Srinivasan.

In April-December 2002, the sector grew 9.2 per cent in terms of dispatches to 81.37 million tonnes (74.47 million tonnes). Over the next few months, the industry expects an incremental demand of 2-3 lakh tonnes from roads mainly from the Golden Quadrilateral (GQ) and the National Highway Authority of India (NHAI).

“The road projects, including GQ and NHAI, would consume around 5 million tonnes of cement-concrete when completed. Although the road projects have been started some years ago, most of the projects’ requirement for cement would come towards the closing stages, when the roads would be paved. This would lead to a good off-take,” sums up Srinivasan.