Sluggish demand from housing and infrastructure segments continues to impact the Indian cement industry. Many plants across the country are operating under capacity; and that’s why cement makers also fear poor financial performance in the current fiscal year.
The industry, as a whole, has been feeling the blues in the past year. However, the companies are hopeful of a revival in demand in the coming time on the back of a rise in cement demand from the rural markets and government spending on infrastructure. Government has recently approved some large-scale infrastructure projects, which will also give a boost to the cement production.
The industry is also contemplating export of cement in the face of rupee depreciation to maintain its profit margins and improve capacity utilization at the plants. The industry already exports clinker and cement to many countries; and therefore rupee depreciation will only add more steam to the export. Government, in the meantime, can work on the policy framework that governs the cement industry, and make all necessary improvements.
Even in these depressing times, cement companies, like Dalmia Bharat Cement, are upbeat about the revival of the industry. They believe there will always be cycles; economies will never grow in a straight line; and that things will get better, soon.
The industry, as a whole, has been feeling the blues in the past year. However, the companies are hopeful of a revival in demand in the coming time on the back of a rise in cement demand from the rural markets and government spending on infrastructure. Government has recently approved some large-scale infrastructure projects, which will also give a boost to the cement production.
The industry is also contemplating export of cement in the face of rupee depreciation to maintain its profit margins and improve capacity utilization at the plants. The industry already exports clinker and cement to many countries; and therefore rupee depreciation will only add more steam to the export. Government, in the meantime, can work on the policy framework that governs the cement industry, and make all necessary improvements.
Even in these depressing times, cement companies, like Dalmia Bharat Cement, are upbeat about the revival of the industry. They believe there will always be cycles; economies will never grow in a straight line; and that things will get better, soon.
