Cement industry crosses 100-m-tonne mark

Our Corporate Bureau
4 May 2002

Mumbai: The Indian cement industry is the only industry in the infrastructure segment that has shown good growth, clocking nearly 10-per cent growth in the financial year 2001-02.

In the same period, the other core sectors have shown marginal or negative growth. This is the first time in the history of the Indian cement industry that annual production of large plants has crossed the 100-million mark.

During 2001-02, large plants have produced 102.40 million tonnes (mt), an increase of 9.39 per cent over the previous year (93.61 mt to 102.40 mt). Also, cement production in March 2002 crossed the 10mt mark the highest ever in a month.

Cement despatches during 2001-02 have increased by 9.62 per cent (93.44 mt to 102.43 mt) as compared to the corresponding period last year. Cement consumption grew by 9.7 per cent (90.29 mt to 99.05 mt) in 2001-02 a significant turnaround from 2000-01 where it showed a negative growth of nearly 2 per cent.

Cement industry overview

(million tonnes)

		March 2002	February 2002	March 2001	2001-2002	2000-2001
					(Apr-March)
(a)	Production	10.35	8.88	9.27	102.40	93.61
(b)	Despatches (including export)	10.35	8.78	9.30	102.43	93.44
(c)	Export	0.38	0.33	0.40	3.38	3.15
(d)	Closing stocks	1.12	1.13	1.15
(e)	Cap utilisation (%)	92	79	93	79	82

Coupled with the outstanding performance, the demand for cement with sops given for the housing and infrastructure industry is expected to stimulate demand for cement in most parts of the country. The concession package proposed for Gujarat might also lead to faster operationalisation of the rehabilitation programmes and is expected to have a positive impact on cement despatches in the region.

Looking at these trends, the cement industry can now expect a better year ahead.