UP ranks second in cement output

Uttar Pradesh posted the highest growth in cement output at 42 per cent in 2003-04, followed by Maharashtra and Karnataka, even though the overall industry growth stood below 6 per cent.

The production performances of the top three states, with Maharashtra at 16 per cent and Karnataka at 15 per cent, were impressive when compared with 5.47 per cent growth recorded by the cement industry during the last fiscal.

"The overall output growth last fiscal was far below the expected 8-9 per cent," secretary general of Cement Manufacturers' Association, S P Ghose, said.

Demand for cement picked up only in the fourth quarter of the last fiscal after remaining low in the first half, he added.

The construction activity, in general, started picking up after November, he said, adding "if this tempo is sustained, the industry can expect a 8-10 per cent growth in production this fiscal."

Punjab posted a 13 per cent output growth in 2003-04. The states clocking single digit growth were West Bengal (9 per cent), Andhra Pradesh (6 per cent), Tamil Nadu and Himachal Pradesh (5 per cent), Gujarat and Rajasthan (3 per cent) and Chhattisgarh (2 per cent).

Region-wise, the west posted the highest production growth at 9 per cent, while the east recorded a negative 0.21 per cent growth in 2003-04.

The southern region recorded an 8 per cent growth, followed by north at 5 per cent and central region at 4 per cent.

The cement industry has a total installed capacity of 142 million tonne. Though the output growth was not encouraging last fiscal, the growth in consumption witnessed an average 6 per cent rise for April-February 2003-04.

Uttranchal posted the highest consumption growth (22 per cent), followed by Karnataka (18 per cent), Delhi (13 per cent), Jharkhand (12 per cent) and Madhya Pradesh (11 per cent).

"The cement consumption growth indicates the current level of construction activities in these states," Ghose said.

The states which witnessed single-digit consumption growth were Gujarat (9 per cent), Kerala and Rajasthan (8 per cent), Haryana (6 per cent), Uttar Pradesh (5 per cent) and Maharashtra (4 per cent).

Punjab, West Band Chhattisgarh posted a 3 per cent growth in cement consumption till February 2004.

Himachal Pradesh recorded a negative 6 per cent growth in consumption, while Bihar and Orissa registered 2 per cent negative consumption growth.

Tamil nadu also clocked a negative 1 per cent consumption growth during the review period.

Prices, on an average, ruled 10 per cent higher than the previous year and this would ensure higher margins for the cement companies, he added.