Cement consumption has surged as much as 35% in 2009-10 after being stagnant between 2006 and 2008 and having had a 13% rise in 2008-09, companies operating in the market said.
Neeraj Akhoury, senior vice-president (sales) at Lafarge India, said year-to-date growth has been faster than that seen last year.
“This is largely due to government projects in rural areas, especially in village and small-town levels,” he said over the phone. “The growth of individual home builders has been very favourable.”
His view was echoed by Rahul Kumar, chief financial officer at Delhi-based Jaiprakash Associates Ltd, which claims a 12% market share in the state, the third biggest behind Lafarge and Swiss-based Holcim Ltd owned ACC Ltd.
“Industry estimates put Bihar growth at 35%, the fastest in the country, much ahead of Uttar Pradesh, which was the next fastest with 20% growth,” he said.
The expansion is more than three times the national average of 10%.
“This growth has come not because of big infrastructure projects, but because of robust rural demand, demand from home builders and small businesses,” Kumar said.
