Certainty of growth still not in sight despite boom
Makarand Marathe, Director, Cement Division, Thyssenkrupp Industries India (tkII)
Makarand Marathe, Director, Cement Division, Thyssenkrupp Industries India (tkII) believes that even as India's demand for cement shows signs of gradual recovery, equipment makers need to prepare themselves to engage with an increasingly discerning customer.
Even if you take the utilisation up to 90 to 95 per cent, we still have two to three years to go. It's only thereafter that the push for new investments will come in. Of course, this is the economist's view. But if you look at the economic reality, large cement manufacturers who have the financial muscle to make investments and acquisitions, will scout for new projects because they will get the best bargains from suppliers. They will be ready for the boom time in two to three years because a cement project takes about 24 months to be completed. So, I don't see any big shift in terms of business generation, but definitely the growth will be solid. Since the government is the biggest spender as far as cement is concerned, it has announced plans for road construction, housing, etc. Therefore, this 8 to 10 per cent demand for cement is expected to sustain. The market will not move into the boom mode yet but there will surely be growth.