The 226-million-tonne Indian cement industry, the world's second-largest after China, is all set to hit a double-digit growth rate in July for the fifth month in a row, owing to robust demand for the building material.
Estimates from industry analysts and cement makers suggest that the industry may record an 11 per cent growth in despatches in the current month.
Hari Mohan Bangur, president, Cement Manufacturers' Association, said, "Demand was strong in July. Though compared to June, it could be slightly lower, but we expect the growth to hit 11 per cent (y-o-y)." In June, the despatch growth was 12.84 per cent.
This means the industry will end up with a total despatch of over 16 million tonnes in the month. Despatches stood at 14.5 million tonnes, growing at 8.13 per cent in July last.
Ajay Kapur, head, commercial & marketing, Ambuja Cements, said, "The monsoon has affected demand in some regions. But, more or less, July will see good growth."
Industry analysts said since there were no heavy rains in the country, except in the west, growth momentum in cement despatches might not see any adverse impact. A section of analysts felt that the current month might even witness a growth of 12 per cent.
The major chunk of the demand, they said, was coming from the north and the central parts of the country. The infrastructure push, demand emanating from semi-urban and rural regions and individual housing, in particular, was keeping the demand steady. In July alone, prices have gone up by Rs 7-10 for a 50-kg bag due to higher demand.
