Cement demand expected to grow 1.2 times of GDP growth rate: UltraTech

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.

India is the second largest producer of cement in the world after China, with an installed capacity of 472 mtpa.

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

"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," the Aditya Birla group firm said in its investor presentation.

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."