India cement consumption to cross 150Mt this fiscal

India cement consumption to cross 150Mt this fiscal
22 February 2007

With the capacity utilisation crossing the 100% mark for the first time in January 2007 and two more peak months of February and March left in the current fiscal, cement consumption this fiscal is all set to exceed the 150Mt mark for the first time. The industry is expected to end the fiscal with a despatch of about 155Mt.This has been possible thanks to the overall economic growth in general and more particularly, impressive growth of the realty sector. Cement industry has already despatched 130Mt in the first 10 months, thus registering a growth of 10%. In the next two months additional 25-30Mt is likely to be consumed. The overall capacity utilisation during the 10 month period is estimated to be in the range of 95% or more, industry sources said. Southern region, which witnessed a slowdown in despatches in the last few months due to monsoon, has regained the lost momentum with increased offtake from Tamil Nadu and Karnataka. 
Andhra Pradesh, which posted a negative growth in consumption in the beginning of this fiscal, has seen despatches picking up sharply.
Cement despatches are expected to touch 155Mt on growth in realty sector Southern India is expected to end the fiscal with 12% growth in consumption Capacity utilisation moved up over 100% in Jan 2007 with despatches at 14.10Mt Among the regions, south is expected to end the fiscal with 12% growth in consumption, followed by north (11%) and west (10%), the industry sources added. Karnataka has shown a remarkable growth in consumption with 20% growth over the same period last year. For the first time in the last few years, the capacity utilisation has gone up over 100% to touch 102% in January 2007 with despatches touching 14.10Mt as against the production of 14 million tonne, reflecting the demand for the commodity. The total installed capacity of the industry has gone up to touch 165Mt in the current fiscal as against 160Mt during the last fiscal. 
Published under Cement News