Cement demand to grow by 7% in 2018

Cement demand in India is expected to grow by 7 per cent this year but intense competition and "not enough" consumption will lead to excess capacity, cement maker ACCNSE -0.39 % said in its annual report. The demand will grow in 2018, helped by the Centre's push on big infrastructure projects and continued focus on rural development and affordable housing schemes. "Consequently, the demand for cement in 2018 is expected to increase from 6 per cent to 7 per cent," ACC said in its annual report for 2017. The cement industry had a growth of 6 per cent in 2017 as against 5.1 per cent in the previous year, it added. Around 66 per cent of its demand came from the housing sector, followed by infra with 18 per cent and 16 per cent by commercial sectors. The total installed capacity of the cement industry in India is around 465 million tonnes (MT), ACC said.