India cement demand to grow by 8% in next year

India cement demand to grow by 8% in next year
Published: 29 August 2009

ACC said that the demand for cement will pick up by eight per cent in the next one year led by housing, retail and infrastructure sectors; however, monsoon failure could have adverse impact.

"We continue to maintain an encouraging outlook for the industry in foreseeable future based on positive gains of growth in demand, led by housing, retail and infrastructure sector. We expect that demand for cement consumption will grow at around eight per cent at least for the next one year," ACC Managing Director Sumit Banerjee told PTI.

During the first half of the current year, cement industry witnessed growth of almost 11 per cent as compared to the corresponding period last year. "If the demand grows at a healthy pace, then we can assume prices are also likely to remain generally stable till next year, with some seasonal fluctuations," Banerjee said.

Banerjee said that the failure of monsoon, if it happens, however would have a delayed and indirect impact on future consumption. "A deficit monsoon will pose a serious threat to the rural economy. In such a case, we may have to focus on the growth of the infrastructure segment," he said.