The domestic cement industry has again, in July, shown a double-digit despatch growth, fifth month in a row since March. The 227-million tonne industry grew at 10.56 per cent in July, which in the corresponding month last year stood at 8.13 per cent.
The industry, with over 50 players, despatched 16.02 million tonnes of the building material in the month. The production grew to 16.28 mt, up 11.2 per cent, as per provisional data from the Cement Manufacturers’ Association (CMA).
Though the sector managed to sustain a double-digit growth in July, the month so far has registered the lowest growth in the current financial year. On a sequential basis, the growth dipped by over 2 per cent.
Hari Mohan Bangur, president of CMA, said, “Demand has remained strong during the month and the growth came because of the low base effect. We hope this kind of growth will continue till September.”
According to analysts, the industry has performed well despite region-specific rain during the month. A section of analysts had forecast a growth of 9 per cent in July.
According to cement players, the growth will taper from October onwards, as in the third quarter of FY09. They maintain that the current financial year will end with a 9 per cent growth, against a below 8 per cent growth registered last year.