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Sanghi Cement looks positively on Indian cement sector

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World Cement,

In a media note, Mr Alok Sanghi, Director of India’s Sanghi Cement, has said that the new government’s infrastructure plans will boost cement demand and reduce the demand-supply imbalance in the Indian cement industry. The country currently has cement capacity of around 375 million t, says Mr Sanghi, while demand is around 300 million t.

Greater spending on public infrastructure projects will likely boost cement demand, while the residential sector is expected to decline. A recent report from CII and AT Kearney, called ‘Cement Vision 2025: Scaling New Heights’, highlights how the boost to the cement industry is likely to come from the increased pace of infrastructure spending over the next 10 years. The report states that an infrastructure investment of between 9 – 12% of GDP will be required to enable sustained economic growth in India.

 “The present government is focused on nationwide infrastructure growth and various housing projects in urban and rural areas, amongst other initiatives. The Indian government’s measures to promote investment in ports, roads, airports and other infrastructure projects are also likely to support cement demand. The industry is also likely to get boost from demand for smart cities project,” said Mr Sanghi.

He added that cement companies will likely benefit from the proposed increase in long term funding availability for infrastructure projects, which is likely to facilitate more investment in these sectors. “Only through infrastructure spending, India can raise its per capita consumption, which is far lower at around 190 kg compared to over 350 kg in Brazil and 1500 kg in China,” he said.

Adapted from press release by

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