The Indian cement industry, which witnessed a double digit despatch growth in December 2009 and an overall growth thanks to infrastructure and real estate projects, is set to add 43.2Mta capacity during the next 15 months (January 2010 to March 2011).
South India, which has already started feeling the heat of oversupply, will add the maximum capacity of 17.6Mt during that period. The next in line is the northern region, which will add 9.6Mt. The western, central and eastern regions will add 9Mt, 3Mt and 4Mt, respectively.
The industry, which is growing at the rate of 8-10%, is currently witnessing price hike in the southern and western regions. Industry sources say with small producers increasing capacity multi-fold and new players entering the southern and western markets, pricing discipline is tough to emerge.