Cement consumption up 5% in first 7 months of the fiscal

Subhadip Sircar

Mumbai, Jan 6: Propelled by a strong rise in cement consumption in eastern India, the cement industry has witnessed a five per cent growth in consumption during the first seven months of the current fiscal. Barring the central region, all the other territories have registered significant increases in consumption figures for the April-October 2001-02 period, according to figures collated by the Cement Manufacturers’ Association (CMA).

The eastern India market, which had recently witnessed a price war with cement multinational Lafarge dropping prices has seen a 17 per cent rise in cement consumption on the back of a 19 per cent demand surge in West Bengal.

Orissa also saw a nine per cent rise during the period but Bihar witnessed a 12 per cent drop in consumption. Production also saw a five per cent rise in the region mainly on account of commissioning of Gujarat Ambuja’s new grinding unit at Sankrail in West Bengal.
Analysts say that the eastern India market is a deficit market to the tune of five million tonne with the demand being in the range of 13 million tonne.

The northern region also saw a nine per cent rise in cement consumption mainly on account of a 15 per cent growth in Himachal Pradesh. Haryana, Punjab and Delhi witnessed growth in demand while Rajasthan witnessed a two per cent drop during the period.

The southern region, where India Cements is the primary player has witnessed a six per cent rise in cement consumption mainly on the back of a 19 per cent consumption increase in Karnataka. Kerala, however, saw a four per cent drop.

The western region, where Gujarat and Maharashtra are the important markets saw a five per cent rise in cement consumption. Madhya Pradesh, however, saw a massive 30 per cent decline in consumption which led to a 9 per cent drop in the region’s consumption.