Surging demand for cement from infrastructure and a fall in prices have increased cement sales in May.
There has also been greater offtake from large real estate projects.
Meanwhile, cement companies with pan-India presence registered a marginal fall in despatches month-on-month due to a fall in demand in the southern region which saw maximum capacity addition to the tune of 25 million tonnes.
Cement prices, on an average, have fallen by Rs3-5 a 50-kg bag across regions in May.
However, the expected slowdown in capacity addition and revival in demand may stop a further fall in prices.
The installed capacity of the industry was about 260-million tonnes in the financial year 2010 against 219-million tonnes last fiscal. Capacity utilisation was down to 84 per cent in the financial year 2010 from 88 per cent in the financial year 2009 due to significant capacity addition in relation to demand.
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