The cement industry continues to enjoy a boom period. Driven largely by the western and southern markets, the dispatches in the first half of the current fiscal ended September 30 grew 10% to cross the 80 million tonne-mark at 81 mt as compared to 74 mt during the same period last fiscal.
Despite heavy monsoon, the western markets, particularly Maharashtra and Gujarat witnessed a sharp growth during the period with14% and 18% rise respectively. During the same period last fiscal, the western region had reported only 12% growth as compared to 16% growth in the current fiscal, said industry sources.
On the southern front, Andhra Pradesh which had seen poor offtake during the same period last fiscal owing to various reasons, has reported 17% growth in the first half, followed by Tamil Nadu at 15%. Karnataka on the other hand reported a marginal growth of 5% as against close to 20% during the same period last fiscal. Overall, the southern region reported 10% growth.
Interestingly, the growth took place despite a sharp increase in the price of cement by around Rs 20 a bag and a substantial addition of over 5 mt. Almost all companies are running at near total capacity (over 95%), said sources. Gujarat witnessed growth of 18% in despatches followed by Andhra Pradesh (17%), Tamil Nadu (15%) and Maharashtra (14%).
As per data, companies such as Ambuja Cements, Home India, Vasavadatta Cements, Shree Cement have together added over 5.5 mt capacity, taking the total capacity to over 173 mt. The sources, however, pointed out that the total capacity would have already touched 180 mt-mark.