India: demand set to rise in Telangana and Andhra Pradesh

Manufacturers in the southern Indian states of Telangana and Andhra Pradesh have said that they expect cement demand to increase by around 20 per cent over the next 2-3 years, reports The Hindu newspaper.

“The ongoing infrastructure projects in the two states along with government demand for welfare schemes are expected to drive growth for next two-three years,” said S Sambasiva Rao, executive director, My Home Industries, which sells Maha Cement.

Current demand in the two states is estimated at between 20-22Mt, with installed capacity at around 60Mta. The executive director of Sagar Cements, Sreekanth Reddy believes that this will rise by five to 7.5 per cent from this month.

“The construction [sector] has been slow till now, but we expect it to pick up from this month which gives us relief,” said a senior executive of a Hyderabad-based listed cement manufacturer quoted in The Hindu.