SME Times is powered by   
Search News
Just in:   • India needs to diversify export portfolio: Report  • Domestic airlines to fly 12,983 flights per week this winter  • New energy policy won't violate deals with US, Canada: Mexican Prez  • 'Digitisation need of the hour for logistics sector'  • KTR calls for empowering states to boost country's growth 
Last updated: 04 Jul, 2016  

Birla.Corp,9,Thmb.jpg Birla Corporation looks at a better demand for cement in 2016-17

Birla.Corp.9.jpg
   Top Stories
» India needs to diversify export portfolio: Report
» 'Digitisation need of the hour for logistics sector'
» 'IBC raised confidence of all investors in economy'
» Relief to borrowers on loans not repaid during 6-month moratorium
» GST return filing deadline extended, again
SME Times News Bureau | 04 Jul, 2016
The M.P. Birla Group's flagship firm, Birla Corporation expects the cement sector which is facing the problem of excess supply will see a better demand in the current fiscal on the back of planned spending by the central government on various projects.

"The demand for cement is expected to be better in financial year 2016-17 on the back of planned spending by the central government on various projects including highway infrastructure, railways, urban infrastructure, river-linking, increased government spending in Bihar and West Bengal post elections," the company said in its latest report.

It said that Indian cement industry is facing the problem of excess supply on two counts - demand for cement being subdued due to slow capital expenditure in infrastructure and poor rural income, while in the last few years, the industry went on an expansion drive.

In a message to the shareholders in the report, company Chairman Harsh V. Lodha and its Managing Director Bachh Raj Nahar said Prime Minister Narendra Modi's announcement on investment of Rs 1 lakh crore to double the capacity of the ports augurs well for the cement sector.

Setting a goal for building 15,000 km of highways and the proposal to use cement in place of bitumen by the Minister for Road, Transport and Highways is expected to boost the demand, it said.

A Crisil Research Report said over five year period, cement demand is projected to increase 8-8.5 per cent CAGR, led by continued growth in the housing and infrastructure sectors.

On the supply side, the company said the pace of new capacities in the industry has slowed down. "Over the period 2016-17 to 2019-20, the capacity addition in the industry is expected to be muted as the industry is approaching the end of investment cycle," it said.

As a part of capital expenditure, the company also plans to procure equipment to augment the capacity of mechanical mining.

The cement maker posted a net profit of Rs 157.35 crore in 2015-16.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 26 Oct, 2020
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» 'Centre open to further economic stimulus'(1)
» Delay in dealing with GST refund delays(1)
» NPAs hurdle to banks' rate cut transmission(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter