Motilal Oswal
  • SENSEX
    NIFTY 50
Motilal Oswal
VIDEOS
Infrastructure

Cement demand will bounce back in coming quarters, says India Cements

Updated : June 10, 2019 12:49 PM IST

Cement demand is likely to bounce back in coming quarters, said N Srinivasan, managing director of India Cements, adding that the reason behind the lack of demand was election.

His comments came after CRISIL said that the cement sector is likely to see a slowdown in the first quarter of FY20 after six quarters of stellar growth.

"It is natural to see a slowdown in April and May, owing to elections," said Srinivasan. “I think primarily the slowdown is because people involved in it went away. So as they come back and work starts, you will see good growth,” he added.

Talking about the situation in Andhra Pradesh and Telangana, Srinivasan said, “I think in Andhra, there is a slight pause while the government is looking at all the contracts..." “I do not think these projects will stop. After a pause, the demand will continue like before."

Speaking about consolidation in the cement industry, he said, “The cost of acquisition has gone up. The cycle has turned. Now we are in an upward trend of cement prices... therefore, I do not see much consolidation happening quickly.”
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV