Cement demand picks up in Andhra Pradesh

Cement demand picks up in Andhra Pradesh
Published: 11 January 2010

Defying logistics problems and other disruptions due to the month-long agitation for a separate Telangana state, the cement dispatches in Andhra Pradesh have shown good growth.

“Except for a few companies, which had limitations due to logistics problems, the industry witnessed good growth in demand,’’ Mr Srikant Reddy, Executive Director, Sagar Cements Ltd, told Business Line.

While the difference between the inventories and actual deliveries was yet to be ascertained, there were huge dispatches in the last one week, he said.

“Even at Sagar, we are seeing very good demand. The national demand is robust and is on expected lines seasonally,’’ Mr Reddy added.

According to industry estimates, the demand increased to 21.7 lakh tonnes in December 2009 from 19.5 lakh tonnes and 17.7 lakh tonnes in November and October respectively.

“Demand in Andhra Pradesh fell in September to 15.5 lakh tonnes, due to unfortunate happenings. At the same time, November and December dispatches surprised everyone,’’ Mr Ramesh Chandra, Managing Director, Bheema Cements Ltd, said.

The industry observers expected a dip in cement demand in Andhra Pradesh as there were State-wide agitations and disturbances over statehood for Telangana. But the continuing construction activity in housing and other infrastructure projects and the impact of good season pepped up demand and sales, according to experts.