Cement cos record 10.2% growth, India

Cement cos record 10.2% growth, India
Published: 17 January 2006

Cement consumption in India recorded a healthy 10.2 per cent growth during April-November 2005, as sustained demand led to higher utilisation rates, but higher energy costs remain a cause for concern for earnings growth, according to think-tank CMIE’s monthly review. 
 
Capacity utilisation rates of the industry improved to 86.5 per cent during the said period with major companies operating at near full capacity, prompting cement companies to venture for major capacity expansion with 4.61Mt of additional cement capacity registering in the mainstream. 
 
Operating at 85.5 per cent of its total capacity, the cement industry reported a 6.5 per cent rise in production and A 5.5 per cent rise in sales during November last year. 
 
Major cement companies exhibited a mixed performance in November. Associated Cement Companies, Gujarat Ambuja Cements and Grasim Industries reported healthy rise in offtake in November, while Ultratech Cement recorded a dip in output during the month.