New Delhi, April 10: Cement sector seems to have come out of the slowdown inthe industry with production by big size plants recording an impressive 15per cent growth in 1999-2000 at 94.01 million tonne. Cement production bylarge plants had recorded a 6.4 per cent growth in the previous year at81.67 million tonne, according to Cement Manufacturers' Association (CMA)data. Likewise dispatches in 1999-2000 also grew by 14.65 per cent to 93.82million tonnes compared to 81.83 million tonne in 1998-99, CMA sources said.``Industry witnessed turnaround in demand for basic construction material infourth quarter of 1998-99 and it sustained throughout 1999-2000, even duringmonsoon when construction activity remains dull,'' they said. Production anddespatches in the March 2000 stood at 9.53 and 9.45 million tonnerespectively, they said.The capacity utilisation by plants in April-February 2000 was 86 per cent,up from 76 per cent during the same period in 1998-99.
Cement capacity at the beginning of 1999-2000 was pegged at 109.97 milliontonne and about 1.70 million tonne cement making capacity was added thisfiscal, according to the latest CMA data. Indo-Rama Cement's one milliontonne capacity plant in Maharashtra went on stream during the year, whileAditya Cement and Chilamkur Cement added 0.40 million tonne and 0.30 milliontonne respectively. CMA expects production by large plants to cross themagical 100 million tonne mark during the current fiscal. Easy availabilityof housing finance, further sops in this year's budget and the advancementof the target date of completion of the National Highway Development Projectby two years would help the sector to maintain the growth tempo, the sourcessaid.
Last few years, the domestic cement sector has been witnessing majorconsolidation with a spurt in mergers and acquisitions. Industry witnessedthe maximum mergers and acquisitions in 1999-2000 and the pace ofconsolidation was likely to gather momentum this year, they said.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.