Expecting spur in cement demand,Holcim eyes expansion in India

Swiss major Holcim is evaluating expansion through new projects as well as acquisitions in India in the hope that "favourable development" under the Narendra Modi-led government will spur cement demand.
The building material major, which has majority stake in Ambuja Cements and ACC Ltd with a combined annual production capacity of more than 45 million tonnes, has also identified India as its one of the main growth drivers for the next year along with Indonesia, USA, Mexico and the UK.
"In India, the Group expects recent favourable development
under new government to continue, leading to faster growing cement demand in the years 2015 and thereafter," the company said in a statement today.

Expecting 2015 to be a "solid year" for the group, which is merging with French rival Lafarge to create world's largest cement firm, it hopes to clock over Rs 18,600 crore operating profit excluding merger related costs as a Group next year.
Ambuja Cements and ACC Ltd together have 15 integrated plants. They will have 14 grinding units with a cumulative 63.7 mtpa cement grinding capacity by 2016 with the ongoing expansion. They also have 49 ready mix plants.

"Further expansion under evaluation for construction or acquisition of new plants," Holcim said.
The new government proposes various measures that should drive cement demand, it said, adding that the supply-demand balance was gradually improving although about 100 million tonne oversupply remains across India.

Holcim said India's cement demand was expected to touch at 310-320 million tonnes with available supply was estimated at 400-410 million tonnes by 2018.