Ambuja Cements sees exports falling, India

Ambuja Cements sees exports falling, India
11 October 2010

Ambuja Cements Ltd, an Indian unit of Holcim expects its exports to fall by up to 25% this fiscal year, as it plans to sell more in the local market, a company executive said Friday.

Ambuja Cements, the third largest cement maker in India by capacity, expects to export around 600,000-650,000t in 2010, down from around 800,000t in 2009.

"With good monsoon rains, growth in domestic demand could even shoot up to 10%-12%. We will focus more on the domestic market," Ajay Kapur, business head - South and West India, told reporters.
India’s cement demand is growing at 8%-9% this year, as construction activity is booming on federal government and private companies aggressively investing in building new houses, roads, ports and airports.

However, good June-September monsoon rains have led to bumper harvest across the country, boosting rural demand, which could lead to an even higher pace in construction than earlier anticipated.
India is the second-largest manufacturer of the building material in the world.

On the company’s production capacity expansion plans, Kapur said Ambuja Cements has signed an initial pact with the provincial government in the north-western Indian state of Rajasthan to set up a 2.2Mta cement factory.

He said the company is expected to spend around INR22 billion on setting up this factory, but didn’t say when it will start production.
Published under Cement News