There is no respite in growth in demand. Taking cue from this development, some medium and small players are testing the market with small hikes.

Though cement demand is expected to grow in double digits during FY19 (2018-19) with pre-election thrust to infrastructure, the unit EBITDA (Earnings before interest, tax, depreciation and amortisation) margins are shrinking, due to prices remaining low, said the leading brokerage CLSA.

The April-June 2018 (Q1) report card of some major cement companies is out, and it has highlighted the major and persistent structural concern affecting the industry - the absence of price hikes.

The cement manufacturers have bitten the bullet much ahead of the beginning of new demand season and raised prices by 3-5 per cent by end of June, mainly to partly cover their rising input costs.

The cement industry is gasping for higher revenues. The industry, which has already been reeling under price pressures with most of the major players focusing on volume growth, is facing the challenge of rising costs, thus making a case for hiking prices.

Cement demand that has started picking up in the third quarter (October-December 2017) of fiscal 2018 (FY18) continued its growth streak in the fourth quarter of the fiscal, according to analysts.

Sand is a non-negotiable resource for the construction sector and, interestingly, is classified as the fourth most important ‘minor’ mineral by the mines ministry. Sand availability was a problem at different points of time in the past few years but 2017 was perhaps the worst year with a series of sand mining restrictions across several states due to non-compliance with environment norms.

Despite an overall improvement in economic indices, and thus in cement consumption, regional uncertainties remain regarding the continuity of this rising trend.

LafargeHolcim levied a 1 per cent technical know-how fee in 2013 after independent directors objected to a 2 per cent payout. The agreement was for five years, with 1 per cent rate for 2013-14 and a review thereafter, but the rate was unchanged until 2017.