The cement industry is poised for a significant boost, with expectations of a 12% rise in cement sales to 20 million tons this month. This uptick is attributed to heightened demand from the realty sector and construction companies.
In January, sales of the building material increased by 11%, followed by a 4.3% growth in February, compared to the same period last year. Companies are set to release their sales data on March 31, the final day of the current financial year.
“Our initial estimates indicate that March sales will surpass those of the first two months of the current year,” stated Mr. Rupesh Sankhe, Cement Analyst at Angel Securities. He further predicted that sales could surge by 12% in March.
Analysts attribute the rise in March sales to high inventory levels from February. “Last month, there was a shortage of wagons, which hindered many companies from delivering the commodity to retailers,” Sankhe explained.
Major cement producers such as Aditya Birla, Jaiprakash Associates, Dalmia, JK Lakshmi, and Shree Cements demonstrated substantial growth last month and are expected to continue this trend. These five companies collectively account for nearly half of India’s total cement capacity of 240 million tons.
“Demand for cement is robust, and the industry will witness healthy growth in March,” said Mr. Hari Mohan Bangur, Managing Director of Shree Cement. He noted that this growth would persist unless any hindrances arise.
Besides the revival in the realty sector, analysts attribute the sharp increase in cement sales to the government’s focus on infrastructure in the five-year plan.
Therefore, the cement industry looks forward to profitable times ahead.