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 Cement’s 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.