The cement sector has achieved a 22.7 per cent rise in production and an equally robust 22.2 per cent growth in consumption during the first quarter ending June, endorsing the view that a revival is on in cyclicals.
Manufacturers have reported an 18.8 per cent rise in capacity utilisation.
Production and despatches trends reveal that the demand is rising in the northern states, while production is declining in the south.
Companies like ACC, Larsen & Toubro, Grasim, Century Enka and Kesoram, which have most of their plants in the north and west, saw an improvement in capacity utilisation.
In the south, Madras Cem-ents registered a marginal improvement in despatches. However, Tamil Nadu Cements, Andhra Cements and Chettinad Cement posted a decline in production during the quarter.
Aggregate production topped 24.45 million tonne during the quarter, compared with 19.89 million tonne in the corresponding period last year.
Production at Larsen & Toubro, which acquired Narmada Cements last year, rose 63.2 per cent on the back of smart improvement in capacity utilisation.
Gujarat Amb-uja Cements rec-orded a 34 per cent rise in production on capacity utilisation of 121 per cent.
Cement companies owned by the Aditya Birla and B K Birla groups reported a 30 per cent rise in production . Grasim Industries, the Aditya Birla group flagship, saw a 48 per cent rise in production and despatches on capacity utilisation of 101 per cent.
Century Textiles, the flagship of the B K Birla group, registered a 30 per cent growth in production and despatches on 108 per cent capacity utilisation. ACC, the single largest producer, however, reported a marginal rise in capacity utilisation. Its production and despatches, however, rose by 23.4 per cent. Madras Cements, due to poor performance during May 1999, saw an 8 per cent rise in production and a modest 4 per cent rise in despatches.
Piggybacking on this demand revival, most of the cement majors increased their capacity utilisation. Gujarat Ambuja Cements logged a smart improvement on this front to 121.18 per cent from 90.44 per cent. At Shree Cements, it rose to 112.77 per cent, Jaypee group 109.08 per cent , India Cements 106.79 per cent , Madras Cements 104.86 per cent , and L&T 94.10 per cent . The despatches also improved significantly during the first quarter. Aggregate despatches rose to 24.35 million tonne from 19.92 million tonne. The highest growth was reported in April at 26.4 per cent. During May, it was up 15.9 per cent, while in June, it rose by 25.5 per cent.
