Infrastructure spending spurs cement sector revival
Investment in infrastructure by states as well as the Centre coupled with boost for the low-cost housing assets have triggered a revival in demand for cement since the start of the second half of the previous financial year and the tempo is expected to continue this year as well.
“Demand is largely driven by social sector investments being made in several states with rural infrastructure as well as low-cost housing triggering demand for cement. Demand is now growing at 5-7% and the trend is expected to continue this year as well,” says B K Singh, senior executive director, marketing at Dalmia Bharat Group.
The domestic cement production rose 6.3% at 298 million tonne (MT) in FY18, as compared to 280 MT in FY17. Most of this growth was registered during the second half of 2017-18 and was largely driven by a revival in demand in key markets.