Supported by increased investments in infrastructure by both the private sector and the Government, India is projected to remain one of the largest cement producer and consumer in the world.
Driven by the rapidly growing economy, expanding consumer market and supportive regulatory environment a number of cement manufacturers such as Associated Cement Companies, Ambuja cements and UltraTech Cement have embarked upon capacity expansion plans. For instance, 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.
With the increase in the demand of housing units which is projected to grow at an average annual growth rate (AAGR) of approximately 230 per cent between FY 2003-07 and FY 2008-12, India is all set to witness an exponential growth in its cement demand.
The Indian cement industry is slowly moving on the path of consolidation. The leading companies are aggressively looking for merger and acquisition (M&A) opportunities in the key cement markets of the country. These M&As are not only providing access to the new prospect markets, but are also balancing the rivalry level in the market. For instance, India's state-run power utility NTPC is planning to set up a cement plant in a joint venture with National Aluminium Company.
No comments:
Post a Comment