The Hindu Business Line : Cement consumption in South may pick up in second half

CEMENT consumption in the southern region is expected to improve in the second half of the year after a negative growth in the first six months. The lower government spending on infrastructure and slowdown in the implementation of the projects were the main reasons for the decline.

Addressing a press conference here on Friday, Mr O.P. Puranmalka, Executive President and Chief Marketing Officer (Cement Division), Aditya Birla Group, said higher demand should not upset the price band, though minor corrections where it had been lower due to lower offtake, was possible.

Mr Pruanmalka was here to launch the Ultra Tech, the new brand name of the L& T cement. The name had been changed post the Aditya Birla Group's acquisition of the L&T's Cement's majority stake last year.

Highlighting the brand equity of Ultra Tech, which had a 25 per cent share of the market in the southern states, Mr Puranmalka ruled out its coming into conflict with Birla cement's brands, which themselves were popular in the market.

The 6 to 7 per cent growth during the first half had been less than the industry average of 8 to 9 per cent.

However, it was expected that the trend would improve in the second half, when implementation of infrastructure and housing projects regain their momentum, with Karnataka and Tamil Nadu giving a fillip.