INDIA: India Cement@ Growth

In the past couple of my write ups I have tried to bring you the potential growth momentum invisibly present in the Indian sectors. I hope I was able to give all investors from corporate finance to individual retail investors a probable idea on their investments plans.

As we all know that Indian infrastructure is poised for huge growth in the coming decade particularly with the 12^th –Five year Plan, where investments in this sector will bring the growth not only for Indian economy but also for the global economy too. With infrastructure we bring growth of and demand of steel and cement. These two are the prime inputs of infrastructure. In other words these two sectors are the eyes of Infrastructure. Demand of cement will be increasing in the coming quarters. Infrastructure is not only the reason behind demand but also Real Estate will be another momentum builder for cement.Without making any further analysis of finding out from where the growth of the Indian cement industry will come we will try to hit the "BULL's EYE"

2011@unlimited Growth

In 2011 we find a golden era for the Indian cement sector. Those speculators who are speculating that the industry is facing excess supply and low demand are just betting on the short term outlook and now enabling to foresee the long term huge potential of growth waiting outside the door.

New Investments

• Cement and gypsum products have received cumulative foreign direct investment (FDI) of US$ 1708.69 million between April 2000 and March 2010, according to the Department of Industrial Policy and Promotion.
• Madras Cements Ltd is planning to invest US$ 178.4 million to increase the manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2 MT by April 2011.
• Surya Group plans to invest US$ 873.3 million in a new 5 million MT cement plan to be set up in Gujarat.
• My Home Industries Limited (MHI), a 50:50 joint venture (JV) between the Hyderabad-based My Home Group and Ireland's building material major CRH Plc, plans to scale up its cement production capacity from the existing 5 million tonne per annum (mtpa) to 15 mtpa by 2016. The company would undertake this capacity expansion at a cost of US$ 1 billion.
• Shree Cement, plans to invest US$ 97.13 million this year to set up a 1.5 million MT clinker and grinding unit in Rajasthan. Moreover, in June 2010,
• Shree Cement signed a memorandum of understanding (MoU) with the Karnataka government to invest US$ 423.6 million for setting up a cement unit and a power plant. US$ 317.7 million will be used to set up a cement manufacturing unit with an annual capacity of 3 mtpa while the balance will be for the 100 mega watt power plant.
• Jaiprakash Associates plans to invest US$ 640 million to increase its cement capacity.
• Swiss cement company Holcim plans to invest US$ 1 billion in setting up 2-3 greenfield manufacturing plants in the country in the next five years to serve the rising domestic demand.