Cement makers post robust growth in April

The 252-million-tonne domestic cement industry is likely to show year-on-year growth of 9-10 per cent in April, on the back of robust despatch figures posted by the major companies.

Continued robust demand and newer capacities going on stream have helped. For instance, the Aditya Birla Group has posted a rise of 6.2 per cent in its despatches at 3.38 mt in April.

Holcim-owned Ambuja Cements sold 16 per cent more, as its despatch stood at 1.9 mt against 1.6 mt last year. North-based Jaiprakash Associates continued to perform far better. Its despatches were 57 per cent more, at 1.25 mt against 0.8 mt in April last year.

The Cement Manufacturers Association will formally release the all the data for the entire industry next week.

During the month, regional demand fluctuated. The northern region, which was registering stronger growth for over two years, has started showing signs of weakening.

“However, this cannot be termed as decline in growth. The base effect, because of higher infrastructural activities in the National Capital Region, has been high, which has its impact on the growth rate in the North,” said a top company official in Ambuja Cements.

Though growth in the northern region is tapering, the western, eastern and central regions are doing well in cement consumption. In the south, Karnataka could see some reasonable growth. However, demand in Andhra Pradesh and other southern markets remained subdued.