Cement despatches to grow 7-8% on high infra demand

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Mumbai: Cement despatches have shown strong growth in the last six months after having reported dismal growth till October 2008. Cement despatches from November 2008 to April 2009 have grown at an average rate of about 10%. Where as in October 2008 the industry despatches grew just about 4.1%.

Industry experts believe June 2009 will also witness about 7-8% growth in cement despatches as the infrastructure demand still continues to be good. Also players like Aditya Birla Group, ACC Ltd among others have increased capacities which would also lead to increase in their despatches.

The combined capacity of Grasim and UltraTech increased from 35 mtpa at the commencement of the year to 41.6 mtpa currently. Similarly Shree Cement among others has also commissioned its clinker manufacturing unit of 1 mtpa capacity at Bangur City, Rajasthan recently.

Meanwhile, cement majors have reported growth in the despatches for the month of May 2009 where Aditya Birla Groups despatches for the month grew at 19.49% and Shree Cement dispatches grew about 32% over last May last year.

The two Holcim group companies, Ambuja Cement Ltd and ACC Ltd’s shipment for the month of May 2009 grew 8.26% and 1.1% respectively.

Commenting on the poor despatch numbers J DattaGupta, head-commercial services, ACC Ltd said, “We had some problems in the past like maintenance and labour problems, due to which our despatches are low.” DattaGupta, however, declined to reveal any further details on this.