Cement demand rises in southern India

Cement demand rises in southern India
21 September 2018

Cement demand in southern India is increasing alongside growth in infrastructure and housing, according to N Srinivasan, chairman, India Cements. "After a long time cement demand is slowly picking up in the south, which has the problem of capacity overhang having 160Mt (out of a total capacity of 400- 425Mt in the country) against the demand of around 70- 80Mt," said Mr Srinivasan.

The southern region recorded a 20 per cent rise in output in the first quarter of FY18-19, on the back of an infrastructure spend by the Andhra Pradesh and Telangana governments and the lifting of a sand mining ban in Tamil Nadu.

India Cements’ capacity utilisation reached 71 per cent over the last year. "This year we are seeing good volume and going forward we will be operating almost at full capacity in the fourth quarter (Jan- March) of this year resulting in better performance," said Mr Srinivasan.

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Tagged Under: India India Cements Demand