Manufacturers in the southern Indian states of Telangana and Andhra Pradesh have said that they expect cement demand to increase by around 20 per cent over the next 2-3 years, reports The Hindu newspaper.

“The ongoing infrastructure projects in the two states along with government demand for welfare schemes are expected to drive growth for next two-three years,” said S Sambasiva Rao, executive director, My Home Industries, which sells Maha Cement.

Current demand in the two states is estimated at between 20-22Mt, with installed capacity at around 60Mta. The executive director of Sagar Cements, Sreekanth Reddy believes that this will rise by five to 7.5 per cent from this month.

“The construction [sector] has been slow till now, but we expect it to pick up from this month which gives us relief,” said a senior executive of a Hyderabad-based listed cement manufacturer quoted in The Hindu.