Cement demand to grow in 2015-16

Cement demand to grow in 2015-16

Cement demand has remained sluggish post monsoon with all-India cement production increasing by merely 1.8 per cent during October-March 2015 as against 9.7 per cent during April-September 2014. While pre-election spending and delayed monsoon had supported the growth in cement demand in first half of 2014-15, the growth slowed down in second half once the election cycle was over.

The capacity utilisation is likely to remain moderate at 72 per cent during the year, but it is expected to improve to 77 per cent in 2016-17, driven by both pick-up in demand as well as slowdown in new capacity addition. In 2014-15, all-India cement production grew by 5.6 per cent as against 3.0 per cent in the previous year.

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