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India cement demand expected to grow 1.2 times of GDP growth rate - UltraTech

Infra News - Published on Wed, 13 Feb 2019

Image Source: ET Realty
Economic Times reported that the average cement demand is expected to grow 1.2 times of the GDP growth rate in the country over the long term, according to UltraTech Cement. The growth of industry will be primarily driven by the government-led spending on big infrastructure projects and low cost housing, besides uptick in rural housing.

The domestic industry has sustained cement consumption growth of seven per cent in last 17 years.

Aditya Birla group firm said in its investor presentation that "Industry reached historical GDP multiple in FY'18 post slowdown in the last three-four years...Long-term average cement demand growth is expected to be 1.2 times of GDP growth rate.”

UltraTech, with an installed capacity of 105 mtpa (million tonne per annum), expects "demand momentum to maintain with improved focus on infrastructure, low cost housing and uptick in rural housing."

The Reserve Bank of India had last week projected an economic growth rate of 7.4 per cent for 2019-20 as against 7.2 per cent in the current fiscal.

The industry would "witness new capacity addition at the rate of 15-17 mtpa", said UltraTech adding that the current capacity additions are backed by old limestone mining leases.

Although India is among the leading producers of cement in the world, its per capita cement consumption is at 210 kg, which is lowest among the developing countries, it said.

Source :

Posted By : Rabi Wangkhem on Wed, 13 Feb 2019
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