According to news reports, UltraTech Cement's Rs 16,189 crore acquisition of the cement business of Jaiprakash Associates may be 'completed soon', according a top executive in the know of the situation.

Historically, the drivers of cement volumes have been infrastructure, construction and real estate activities. Cement volume growth shows a varying correlation with each of these segments.

According to a few analysts and industry watchers, the hikes in the prices of cement by various cement manufacturers are an indication of a possible growth in volumes and probable profitable for cement makers during the current quarter.

India is the second largest producer of cement globally and the industry has been a vital part of its economic development, providing employment opportunities to more than a million people, directly or indirectly.

Analyst firm Sharekhan believes that, barring the southern cement players (due to drought-like conditions in key southern states), cement demand is likely to improve on account of diminishing effects of demonetisation and an uptick in government spending on infrastructure development and housing projects.

Ratings agency ICRA says that an expected revival in the infra space may help cement demand to grow to around 4 to 5 per cent in the next fiscal.

Global cement consumption is projected to average around 2 per cent per year from 2016 to 2021, according to the Global Cement Volume Forecast Report 1H2017 update of the Global Cement Volume Forecast Report (GCVFR).

The price increase can be attributed to better demand in Bihar, Jharkhand and Chhattisgarh. The improvement was observed both in the individual housing sector and government projects.

Cement players in northern India have decided to hike prices twice in March. Comparatively, prices in the southern India continued their decline, dropping by Rs 5-10 per bag.