India’s cement industry is steadily growing and is set to add on 50 Million Tones additional capacity during the current year as the demand still remains high.
The Indian cement industry will continue to show steady performance by increasing its capacity another 50 Million Tones in 2009 despite the recession and slump in the country’s housing industry, stated H M Bangur, President of Cement Manufacturers’ Association (CMA) and reported by economictimes.
While the construction sector has got deeply affected by the global crisis, the cement sector is improving day-by-day, recording a YOY growth of 9.4% in the fourth quarter of FY09. The cement prices are also shooting up. The Association has predicted that the cement sector will grow by 9-10%, provided the GDP of the country grows at the rate of 7%.
According to a new RNCOS report “Indian Cement Industry Forecast to 2012”, India ranks second worldwide in the cement production after China. The Indian cement industry is continuously expanding, with rising production capacity of major players in the past few months. This indicates to no impact of recession on the industry.
Moreover, the cement production and consumption are expected to grow rapidly during 2009-2012. Housing industry makes up for over 50% of the cement consumption in India and the same trend is expected to continue in coming years, says the report.
However the government took some infrastructure initiatives, but they proved inadequate. The construction sector is severely hit by the increase in prices of cement, which were driven by the rise in demand due to the infrastructure projects of the public sector.
Although the manufacturing sector registered slow year-on-year growth, some of the sectors, such as the cement industry, displayed a fractional upturn during the later six months of FY09 as compared to the first six months.
According to a Research Analyst at RNCOS, “The Indian cement industry is expected to grow rapidly in coming years due to heavy demand from housing, retail and infrastructure industry. Moreover, several players have decided to raise their production capacity during 2009-2012, which, in turn, boosts the production volume of the cement industry.
Related Market Research Reports:
Indian Cement Industry Forecast to 2012
UAE Construction Industry Outlook to 2012
Indian Housing Sector Analysis
