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.”