India: cement use grows the most in eastern region

India: cement use grows the most in eastern region
Published: 17 April 2009

The growth of cement consumption in the eastern region of India in FY09 has outpaced the other regions for the first time in the last four years. Cement manufacturers in the region said it was mainly on the back of an unprecedented spurt in demand for the building material which made the eastern market outperform the rest of the country.

The eastern market, comprising the Northeastern states along with Bihar, Jharkhand, Orissa, Chhattisgarh and West Bengal, registered a rise of 11.32 per cent in cement consumption at 28.21Mt. The region registered a growth of 5.62 per cent last year.

The consumption in the northern region grew by a mere 4.77 per cent, whereas in the South, West and Central regions, it grew by 10.37 per cent, 5.36 per cent and 10.43 per cent, respectively.

R P Gupta, managing director of the Orissa-based Shiva Cement, said, “Post November, the region witnessed an unprecedented demand for cement. Since the region is dominated by rural and semi-urban areas, the impact of recession was not as pronounced here as it was in the metropolitan centres. Demand from housing and infrastructure projects boosted the demand.”

For instance, against the national consumption growth rate of 8.4 per cent in FY09, cement consumption in Bihar rose 12.58 per cent to 5.1Mt, Jharkhand registered a growth of 16.48 per cent at 3.11Mt. Similarly, Orissa and Chhattisgarh witnessed a rise of 15.92 per cent and 8.92 per cent, respectively.