Cement industry in the country will add 110 million tons to its production capacity at an investment of Rs 50,000 crore in the next three years, cement manufacturers' association (CMA) said today. "In the next three years, Rs 50,000 crore is being invested for increasing the cement capacity in the country by 110 million tons," association's newly elected president H M Bangur told reporters here.
The production capacity is being increased by different cement manufacturers across the country, he said, adding that the present cement production is estimated at 165 million tons. Asked on pricing of cement, Bangur said it is stable right now and would remain at the existing level for the next six months. "As there is no shortage nor surplus at present, so chances of prices going up is equal as going down," he said. The CMA president, who is also the Managing Director of Shree Cement Ltd, said the price increase in April-November was less than three per cent and it remained lower than the national inflation rate.
The industry body denied any cartelisation among cement manufacturers. During April-November, the country saw an 7.72 per cent year-on-year growth in cement production, Bangur said. "India's economy is growing at nine per cent and it has fuelled the cement industry to grow at 10-11 per cent in the last two years," he said, adding that growth of the cement industry is correlated with that of the country's GDP.
Source: Zee News
17th December, 2007