Coal news and updates

Cement demand likely to grow 5% in 2014: ACC

April 24: ACC Limited, one of the leading cement manufacturers in India, feels overall cement demand in the country is estimated to grow 4%-5% in 2014.

"Consumption growth may pick up beyond 5% if investments are made in the infrastructure segment", the company said in its annual report.

"Even with a modest increase in consumption, the cement industry will continue to have a huge capacity surplus in 2014, particularly in the south," the annual report added.

The company feels, as per the current trend, interest rates are likely to come down gradually, stimulating demand in the housing sector.

Meanwhile, ACC Limited reported a 1% decline in both production and sales volumes, including cement and clinker, in 2013.
Production of cement in 2013 stood at 23.86 million tons (mt) compared to 24.12 mt in 2012 while sales volumes of the company declined to 23.93 mt in 2013 against 24.11 mt in the previous year.

Explaining the reason for the marginal decline in sales volumes, the company said, "Our large capacity in the south and west could not be placed in the market due to overcapacity in these regions and also on account of negative consumption growth in our key markets of Maharashtra and Karnataka. The sales volume was, however, in line with other large cement manufacturers in India."