Leading cement firms register 10-30% growth in despatches

Nisha Das
30 October 2003

Mumbai: Leading cement companies such as Associated Cement Companies (ACC), Gujarat Ambuja Cement, Grasim Industries and India Cement have registered an over 10-to-30-per cent growth in despatches during the last six months period.

ACC has recorded a growth 32.6 per cent in April-September 2003 as against the industry growth rate of 4.3 per cent. For the month of September alone ACC grew by 13.4 per cent on a year-to-year (yoy) basis as against the industry growth rate of 5.79 per cent in the quarter ended September 2003.

The Gujarat Ambuja group has also shown an improved performance with 200-per cent growth in April-September as against the industry growth rate of 4.3 per cent in the same period. It grew by 4.93 per cent yoy in September 2003.

Analysts tracking the industry say domestic cement consumption in the September quarter grew by around 5.8 per cent on a yoy basis to 8.95 million tonnes as compared to 8.46 million tonnes in the corresponding period last year.

Says Urmik Chhaya, an analyst with Karvy Consultants: "For the first six months of the current fiscal (April-September), the cement sector witnessed a growth rate of 4.3 per cent. Domestic consumption increased from 54.34 million tonnes between April-September to 56.69 million tonnes in during the same period."

Grasim Industries has registered a growth of 6 per cent in April-September as against the industry growth rate of 4.3 per cent. The despatches of India Cement have shown 20-per cent growth in September 2003 and a cumulative growth of 3.7 per cent in April-September 2003.