Despite the domestic cement industry facing challenging times due to muted demand, excess capacity and declining prices, it may see higher demand growth over the next 3-5 years, segment major ACC has said.
“The year 2015 was most challenging in terms of demand growth, excess capacity and declining prices. Forecasts for India’s GDP growth in 2016 and in the short term are of the order of 7 to 8 per cent. India’s per capita consumption of cement at 207 kg is well below the world average of 540 kg. India is destined for development and growth,” said ACC Chief Executive and Managing Director Harish Badami said here. The overall demand for cement was dull, with growth of only about 2 per cent in 2015. A surplus of about 100 million tonnes of capacity and the low capacity utilisation of 73 per cent made the cement market very competitive throughout the year, the CEO said.