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Growth and Future Prospect of the Industry

Satisfactory Essays

3.11. Future prospect of the Industry
The objective here is analyze the growth and future prospect of the industry. The purpose is to make predictions about the future growth of the industry.
The cement industry of India has shown tremendous growth over the past few years. The industry is expected to grow in terms of capacity in the coming years. However, the increase in capacity is only possible if the demand will rise and match the supply.
In November 2012, the Indian Brand Equity Foundation (IBEF) stated that it expected double digit growth for the industry post the year 2012. It is reported that the cement industry would increase production by around 71 mt/year to reach over 300 mt/year by 2014. (Edwards F. 2.)
The Indian Government’s 12th Five Year Plan, which runs from the year 2013-2017 states that the industry will possess a capacity of 480 mt/yr by the year 2017. (Edwards F. 2.)
This quantity increase represents that the production will become almost double of the current production. The question that arises now is the utilization rate. The government promises significant investments in infrastructure, though corruption has hampered such investments in the past.
Issues in land acquisiton make it difficult for firms to enter the market and the greenfield investments remain low. If the interested producers are able to gain access to land, access to limestone is another issue. In some areas, the limestone reserves are so small that they cannnot be utilized for a

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