Cement sector growth declines to 2% in 2019, say industry experts

India's cement sector growth witnessed a decline of almost 3 percentage points in last year due to various factors, including global sentiments and cash flow, an industry expert said on Thursday.

The growth rate came down to 2 per cent during last year from a compound annual growth rate (CAGR) of 5-6 per cent in last five years, Wonder Cement MD Jagdish Chandra Toshniwal told reporters here.

He said there are multiple factors including global sentiments and cash flow which led to the slowdown.

He noted that while some sectors felt the immediate impact of demonetisation, the cement industry experienced it at a later stage.

However, he expressed hope that efforts for the revival of the country's economy by the government will bring back growth in this sector, which is associated with construction and infrastructure development.

He also said that 2020 is likely to be a volatile period for this sector.

The demand for cement in India has gone up to 400 million tonnes (MT) from 30 MT four decades back.

Earlier, Wonder Cements Director Vivek Patni announced the launch of company's new grinding unit in Badnawar, Madhya Pradesh. It was developed at a cost of Rs 350 crore.

Patni informed that this is second grinding unit of the company in the country. The first grinding unit is located in Dhule, Maharashtra, which was launched in August 2018.

The next grinding unit is being developed in Jhajjar, Haryana.

The company will achieve combined production capacity of 13 MT per annum by the end of 2020, he said.

Wonder Cement Executive Director Sanjay Joshi said the country has been facing the overall economic slowdown but this has not affected the company.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel