Cement sector witnesses hike in production, sales

Our Corporate Bureau

Mumbai, May 7: THE first month of the new fiscal seems to have brought some respite to the cement industry. Production and sales figures for April 2001 witnessed an increase as against the corresponding period last year.

Cement production increased by 4.2 per cent to 8.43 million tonne (mt) in April 2001 as against 8.09 mt in the same month last year.

Cement sales rose by 5.85 per cent to 8.51 mt during the month under review from 8.04 mt in April, 2000, according to the latest figures collated by Cement Manufacturers Association of India (CMA).

About 7.5 mt production capacity was added during 2000-01 to take the total capacity of various cement manufactures in the country to 117.60 mt as against 110.10 mt at the beginning of the year.

Industry officials said that this period was normally good for the industry as cement demand increased on account of job completion.

Larsen & Toubro registered a 12 per cent increase in dispatch to 1.1 mt as against 9.8 lakh tonne in the corresponding period last year. Grasim Industries also showed an increase of 9 per cent in dispatches at 7.7 lakh tonne.

Gujarat Ambuja also had an increase in dispatches of 13.2 per cent at 6.1 lakh tonne. Only ACC was the sole exception which saw its shipments fall marginally from 9.7 lakh tonne to 9.6 lakh tonne during the period.

Meanwhile, a survey by Confederation of Indian Industry’s Associations Council (Ascon) has projected a 0 per cent to 5 per cent increase in production and sales during the next six months.

“The cement industry outlook for the next six months indicates 0 per cent to 5 per cent growth in both production and sales while exports are likely to remain at almost the same levels,” the survey said.