C. OUTLOOK

CEMENT

Even though India is the second largest cement producer in the world, the per capita cement consumption is only 146 Kg as against the world average of 357 Kg. India's per capita consumption is the lowest among the top ten cement producing countries in the world. Therefore, this country has huge potential for cement consumption growth once infrastructure development further accelerates, cement demand will go up substantially from the present level.

The restoration of export incentive for cement and clinker by the Government will encourage exports whereas the reimposed duty on import of cement will discourage cement imports.

The demand for Cement is strong in the Southern Region, where production and consumption are going neck to neck witnessing growth of about 10% year on year basis, which is higher as compared to all India growth of 8%.


TYRE

Fortunes of the tyre industry are linked to the automobile & transportation sector and the outlook for the industry looks bright in the long term. However, due to economic slowdown the demand for tyres may be impacted in the short term.

RAYON & TRANSPARENT PAPER

It is expected that the domestic demand for VFY will remain satisfactory due to its natural advantage of feel and lustre. Price decline in raw materials should have favourable impact on profitability.

However, the outlook of T.P. is not encouraging unless some effective steps to curb unregulated imports and subsidy to encourage exports are taken by the Government.

HEAVY CHEMICALS

Higher demand & better price levels for Caustic Soda are expected to continue.