The cement industry envisages a deficit of 5 million tonne in 2003-04, H M Bangur, chairman, Shree Cement, said.
Bangur, addressing a seminar on the cement industry organised by Millennium Mams, said: "There is likely to be a deficit of 2 million tonne in 2002-03. However, in 2001-02, there will be a surplus of 3 million tonne."
At present, the capacity of the Indian cement industry is 95 million tonne and ranks second in the world. China, in contrast, accounts for one third of world capacity at 540 million tonne.
However, per capita consumption of cement in the country is very low at 70 kg as compared to a world average of 270 kg. Bangur said he expects that there will a growth of 8 per cent this year.
Bangur also said the cement industry has changed over the years. "Plants with less than 2 million tonne capacity are not unviable today as compared to a 1 million tonne a few years back."
Housind accounts for around 75 per cent of cement consumption in India. Government spending is 15 per cent and consumption in industrial projects is as low as 10 per cent. "Demand for cement is inelastic and it has no substitute," he added.
