Economy

Here's how infra firms will gain from Kerala floods

Updated : August 21, 2018 03:21 PM IST

Out of the total loss reported due to the floods, the damages in state's infrastructure were worth Rs 300 crore.

India Cements said that the state has a "remarkable recovery capacity" and that the demand would pick up from September.

Kerala contributes 12-14 percent to sales of India Cements, the company chief said.

Here's how infra firms will gain from Kerala floods

Torrential rain finally subsided in flood-hit Kerala on Sunday, giving some respite to thousands of marooned families.

Incessant downpours since August 8 have caused the worst floods in a century in the southwestern state. Close to 200 people have perished in the rising waters and landslides, while the total number of people killed since May is nearly 400.

The state has suffered a loss of Rs 19,512 crore due to the deluge and 8,00,000 people have been displaced over the past few days. Among this magnitude of destruction and suffering are many companies, which have taken a hit. However, things seem to be the other way for infrastructure companies who may see a strong demand soon. This due to state's infrastructure being severely hit by the disaster.

Out of the total loss reported due to the floods, the damages in state's infrastructure were worth Rs 300 crore, according to a report in Aljazeera. More than 10,000 kilometres of national and state highways are damaged, while a massive part of panchayat roads is also destructed, taking the total road damage to 65,000 km, said another report by Mint.

As the rains have now stopped and red alerts have been withdrawn from all the districts, the government is now focusing on relief measures and rebuilding the state's infrastructure.

These reconstruction opportunities are expected to create high demand for infrastructure products, which in turn would benefit infra companies.

Talking to CNBC-TV 18 N Srinivasan, vice chairperson and managing director of India Cements said that the state has a "remarkable recovery capacity" and that the demand would pick up from September.

Kerala contributes 12-14 percent to sales of the company, he added. "West, north, central India are already at higher capacity utilisation and now south is picking up."

Other companies like Grasim, Ultratech, Ambuja, JK Cements and NCL Industries are also positive on demand outlook and are expecting a price hike after monsoon.

Union Minister KJ Alphons said on Monday that Kerala needed thousands of electricians, carpenters and plumbers to repair and rebuild damaged homes and buildings - hinting that the sector is likely to flourish in business as per Kerala's needs.

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