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‘Cement output flat at 70% of capacity’

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‘Sector hit by construction slowdown’

Cement production is expected to remain at 70%-75% of installed capacity this financial year, according to M.P. Rawal, advisor to JK Cement.

The industry had a total installed capacity of close to 430 million tonnes a year in the country. Production last year (2016-2017) was about 300 million tonnes, which meant that almost 30% of capacity was not used. “This financial year too, the capacity used so far is just 70% to 75%,” he told the media here on Saturday.

“Our growth depends directly on construction activity. If it slows down, the cement industry also faces slow down,” he said. Industry watchers expect this financial year to witness similar demand for cement and resultant production, as last year. “Manufacturers have not made any significant investments primarily due to the auction system — followed by the Government since 2015 for limestone quarries — and a substantial portion of the existing capacity remaining unused.”

Mr. Rawal said ready-to-use products were common in Europe. “In India, demand is just picking up. Large infrastructure projects are expected to increase demand for these products. Investments are being made for their production.”

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Printable version | Jan 18, 2020 2:05:08 PM | https://www.thehindu.com/business/cement-output-flat-at-70-of-capacity/article19699675.ece

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