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India’s cement industry back on growth track

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World Cement,

Core sector growth rises

Core sector growth in India is rebounding. The core sector index grew 7.3% in June, its fastest growth in nine months, allaying earlier fears that a delayed monsoon would have serious implications on economic performance. In fact, the rainfall deficit in July was only 10%, making the overall deficit to date just 22%.

The cement sector grew 13.6% in June and electricity generation and coal production were likewise up, which bodes well for industry. Since the beginning of the new financial year, India seems to be on a growth path. Analysts are predicting a growth rate above 5% this year, having hovered below 5% for the last few years.

Cement price row continues

As the row over cement prices continues, property developers in the south of India are reportedly considering establishing their own cement plant. Members of a committee made up of property developers and those investing in infrastructure projects are allegedly thinking of purchasing a ‘distressed’ cement plant in the region to refurbish and, ultimately, bring down their own costs, according to a report in The Economic Times. Taking over an existing facility seems to be preferred over building a new plant, which would take time. Some of the interested parties have reportedly suggested putting in Rs.10 crore each to raise a total Rs.500 – 1500 crore to run a 1 – 3 million t plant.

Cement plant expansion

Tamil Nadu Newsprint & Papers Ltd (TNPL) is reportedly increasing the capacity of its 600 tpd cement plant to 900 tpd. The plant uses mill wastage materials such as lime sludge and flyash. The expansion will cost a reported Rs.30 crore and will be completed within about 18 months.  

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