Mumbai: Holcim, the Switzerland-based cement major, says India is among the robust of markets in Asia. It has said so at a time when the country's cement sector faces rising costs and poorer-than expected demand, despite this being the peak construction period.
The company operates in India through group companies ACC and Ambuja Cements. It has said its outlook for Asia continues to be positive and that India, Indonesia and Philippines rank among the most promising growth markets. Its latest annual report says prospects for the construction industry are very good in these countries, given the high demand for infrastructure expansion projects, as well as the need for low-cost housing.
Both ACC and Ambuja sold more cement in calendar year 2012, primarily in the first half. "In response to mounting inflation, the (Indian) government postponed a number of infrastructure projects in the second half, and higher interest rates reined in demand for commercial and industrial buildings," the report said.
Holcim is expanding its production capacity in India. ACC plans to raise this from the existing 30 million tonnes per annum (mtpa) to 35 mtpa, in a phased manner till 2015. As part of this project, a new plant at Jamul in the state of Chhattigarh is under process. Also at Jamul, grinding capacity is being replaced. Part of the clinker produced in Jamul is earmarked for the expanded Sindri grinding plant (in Jharkhand) and for the new grinding plant in Kharagpur (West Bengal).
ACC and Ambuja have a combined capacity of 57 mtpa, around 16 per cent of India's overall cement making capacity of 360 mtpa.
On the Bombay Stock Exchange, the shares of ACC closed weaker today at Rs 1,127.90, down 0.1 per cent. Ambuja’s closed at Rs 168.20, up 2.4 per cent.
