Construction spurs cement industry growth

Propelled by boom in construction sector, the Rs 30,000 crore cement industry recorded a growth of over seven per cent in 2004.

Propelled by boom in construction sector, the Rs 30,000 crore cement industry recorded a growth of over seven per cent even though a slump in prices was seen towards the end of 2004.

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Intense construction work in road and highways during the year spurred demand for cement though the transporters' strike came in the way of higher growth by affecting despatches of cement to various destinations.

The positive factors led to fresh investment plans in the sector as company after company realised potential of creating new capacity due to sharp increase in demand.

The year also saw the successful de-merger of Larsen and Toubro's (L&T) cement division in favour of Grasim Industries.