Cement consumption in Oct up 8%

Chennai, Nov 15 | Updated: Nov 16 2005, 05:51am hrs
Driven by the continuous and increased demand from the southern states, particularly in Andhra Pradesh and Tamil Nadu, cement consumption across the country during October 2005 has gone up by 8% to touch 11.62 million tonnes as compared to 10.76 million tonnes during the same month last year. The overall production too witnessed a growth of 7.42% during the month.

Though the overall production in the southern states has grown by 16%, the consumption level has gone up substantially by 21% over the same month last year, according to industry sources.

In Andhra Pradesh, the consumption during October has shot up by 43% while the production witnessed a growth of 25%. Similarly, in Tamil Nadu, the consumption and production have gone up by 24% and 16% respectively, sources said. This is against an all-India average of 10% growth in October, sources added.

Consumption in Chattisgarh was up by 53%, Bihar (31%), followed by Jharkhand (17%) have also helped the overall consumption of the industry to grow 10% during the month. Karnataka and Kerala have also contributed to the overall southern markets growth, said the sources further.

While the consumption in western and northern regions have seen a modest growth of 5% and 6% respectively, the central region posted a negative growth of 4%.

BOOM TIMES
Overall production grows 7.42% during the month
Production in southern states up by 16%
But consumption in south has gone up substantially by 21%
On the export front, October month has seen a growth of 51.35% to 5.6 lakh tonnes as compared to 3.7 lakh tonnes during October 2004. The clinker export, however, declined by 52% to 2.1 lakh tonnes from 4.4 lakh tonnes during same month last year, the sources said further.

For the seven months ended October 2005, an addition of 2.41 million tonnes capacity addition took place, taking the total installed capacity of the industry to 156.26 million tonnes. Companies such as My Home Industries, Binani and Vasvadatta have added fresh capacities.