The Indian cement industry has returned to double-digit growth on the back of rising demand, as peak consumption season sets in.
The despatches in December were the largest so far in the current financial year at 17.74Mt. With this, the industry has recorded the highest sequential growth rate at 12.78 per cent, whereas on a YoY basis, after a gap of three months since August last year, the growth was in double digits at 10.8 per cent.
The offtake during December was higher than the industry production of 17.51Mt. Industry analysts said inventories helped fulfill the demand for the building material.
The northern, eastern and central regions of the country did well. Infrastructure demand, especially from roads and power projects, fuelled demand.
In November, MoM growth was a meagre 2.34 per cent. Compared to it, growth in December was 12.78 per cent.
In September, the despatch growth was down at 6.2 per cent. However, the later months of October and November witnessed rising demand. Most players, except the Holcim group companies - ACC and Ambuja, witnessed growth.