‘Cement demand to witness modest growth in next fiscal’

Source: The Hitavada      Date: 05 Dec 2017 10:00:17


 

Business Bureau,

DOMESTIC cement demand is expected to register a modest growth of one per cent in 2017-18 fiscal driven by pick-up in affordable and rural housing and road and irrigation projects, rating agency Icra said.


As per the agency, the cement offtake has continued to remain weak in April-September and also in October due to factors such as weak real estate activity, sand shortage and GST implementation issues.


While the demand growth is likely to be driven by a pick-up in the housing and infrastructure segment, new project announcements from the private sector continue to remain weak.


“Going forward, the demand growth is likely to be driven by a pick-up in the housing segment – primarily affordable and rural housing - and infrastructure segment, mostly road and irrigation projects,” ICRA Ratings Senior VP and Group Head, Sabyasachi Majumdar said.


Majumdar further said revival of public-private partnership is crucial to improve the pace of infrastructure development.
Domestic cement demand is expected to register a modest growth of one per cent in the current fiscal on the back of a rebound in cement demand from the fourth quarter of 2017-18 as against the earlier expectation of the third quarter, Icra said.