However, he was optimistic about 2008 as the growth is expected to be 10% in the Northeastern region. Asked as to how this could be possible in view of the present scenario, he explained that his expectation is based on the Government’s Special Industrial Policy for North East, Look East Policy, Road Developmental and  constructions taken up by the National Highway Authority of India and various railway projects. The combined effect of all these policies and projects will definitely create more demand and give a boost to the cement Industry of this Region.

To the question whether the cement manufactured in the region has any potential market in  South Asian countries, he replied that there is no such possibilities. But there is good demand and market for us in the neighboring states like Bihar, Jharkhand and North Bengal. He also said that there is no gap between demand, production and sales in the cement sector of the North East.

Star Cement, an ISO 9001 company, has its plant located in Lumshnong, about 126 kms from Shillong in Meghalaya. The plant has a licensed capacity of 3200 MT per day and is operating at 100% capacity utilization and market demand is, therefore, fully satisfactory. Star Cement’s market share is 31% while its main competitor Topcem is 19% only.

Regarding major constraints faced by the Northeastern cement industry, Mr. Agarwal said that power shortage and lack of transportation  infrastructure are two major problems and they are adversely affecting production and distribution. To a specific question of whether his industry has been facing any problems or threats from the insurgent groups of the region he categorically said that no such problem and situation had ever occurred.  Rather, he reiterated that the local people are very nice and fair in their trade and transactions. He said that till now, they have not been required to oblige or bow down to any one under any such situation. He said all things are going well as planned and expected. The installed capacity will be increased to 1 million Ton per year within the year 2010 as another plant will be set up in Guwahati.

Speaking about the pattern of consumption of cement he said that the major consumption is the individual buyers, followed by N.H.P.C. and the National Highway Authority.  He said that  the cement plants in the region are cost effective vis-à-vis any plants in the country. He sees a scope for further modernization and the industry is also working on it.

Utpal Kanta