Cement production peaks in Gujarat

Cement consumption in Gujarat in April this year is higher by 55.08 per cent, says a study

With eight mega cement manufacturing plants working in full steam, Gujarat recorded the highest cement production in the last financial year.

Plants of major players in the sector, including Grasim Industries Ltd, Gujarat Ambuja Cements Ltd and Larsen & Toubro Ltd, were working all through the 12 months of the last fiscal year.

In April this year, Gujarat witnessed a 39.08 per cent rise in aggregate production of cement. The state recorded an output of 10.32 lakh tonne in the month.

This is the second-highest cement production in a single month during April 2003-04. The highest production was in December: 12.03 lakh tonnes.

Industry experts said the state is going to witness higher production during the remaining months of the current fiscal year with cement consumption also showing a steady rise. The consumption in the state is higher than most of the states using high amounts of cement.

According to a recent report by the Centre for Monitoring Indian Economy (CMIE), cement consumption in Gujarat during April this year stood at 8.14 lakh tonne, higher by 55.08 per cent over the corresponding month in the previous year.

"As opposed to this, cement consumption during April 2003 had fallen by 20.66 per cent and when compared with the preceding month, consumption of cement during April 2004 had moved up by 58.19 per cent. During the same period, cement consumption at the all-India level increased by 15.27 per cent to 10.04 million tonne and with a 8.10 per cent share, Gujarat was the third-largest consumer of cement in the country," said the CMIE report.

Maharashtra and Uttar Pradesh registered the largest consumption with a share of 14.03 per cent and 12.6 per cent, respectively.

In April 2004, Gujarat reported 10.32 lakh tonne of cement production cumulatively holding a 9.74 per cent share in the country's total production.

Rajasthan had a 15.27 per cent share, Madhya Pradesh 12.28 per cent and Andhra Pradesh 10.95 per cent and Maharashtra 9.47 per cent share. Maharashtra's share was lower from 10.6 per cent a year ago.

Gujarat Ambuja, which had produced 3.56 lakh tonne of cement at its plant at Kodinar in Amreli district in April 2003, registered a production slightly over than this at 4.51 lakh tonne in April this year.

While Gujarat Ambuja, the largest player in the industry in the state, reported over 25 per cent growth in production year-on-year, Grasim Industries, which produced 58,000 tonne of cement in April 2003, increased production by almost 20 per cent to over 67,000 tonne In April 2004.

Gujarat Sidhee Cement Ltd, which reported 37,000 tonne of cement production in April, 2003, registered almost 100 per cent growth in production in April, 2004. It produced over 66,000 tonne in April 2004 at its plant at Veraval in Junagadh district.

Saurashtra Cement Ltd, which has its plant at Ranavav in Junagadh district, registered 72,000 tonne of cement production in April this year against 55,000 tonne in April, 2003.

Sanghi Cement has reported 76,000 tonne at its plant at Abdasa in Kutch this April against 61,000 tonne in March, 2004. Sanghi started its production in full capacity only in December last year.

L&T, which has plants at Magdalla, Pipavav and Jafrabad, produced 47,000 tonne, 2.31 lakh tonne and 18,000 tonne at these plants, respectively, in April, 2004 against 2.35 lakh tonne in April, 2003.