Indian conglomerate Adani is moving into cement manufacturing, whose increased output typically raises demand for petroleum coke and coal.
Adani Enterprises, the group’s flagship company, has set up a subsidiary Adani Cement to manufacture cement. The company did not disclose details of its planned cement production capacity but market participants said Adani may aim for at least 10mn t/yr initially.
India is the world’s second-largest cement market after China but its per capita cement consumption of 200-250 kg/yr is less than half of the world’s average per capita use of 500-550 kg/yr and a fraction of China’s average use of 1,650-1,700 kg/yr. The Indian federal government’s thrust towards building infrastructure and housing is translating into growing cement demand.
Cement is a natural extension of Adani’s power business, market participants said, with Adani Power India’s largest private-sector power producer. Its foray into cement will help the company use fly ash, a key raw material for manufacturing cement, from its power plants.
source : https://www.argusmedia.com