Cement growth to remain sluggish

Cement growth to remain sluggish

Cement industry analysts have predicted slow recovery of the industry in 2014. Economic recovery in the coming year will remain under pressure; higher costs may continue to affect the profitability of cement makers in 2014. The cement sales growth is expected to improve only marginally up to 6.5 per cent in 2014 compared to 4-5 per cent in 2013. Pre-election infrastructure spend will be limited as the government is trying to reduce the fiscal deficit. Companies are hesitating to go ahead with their investment plans as they are uncertain of the government policies to be implemented.

According to Barclays Research, the capacity utilisation will rise marginally to around 375 million tonnes from 350 mt in last year. New entrants such as ABG Cement, Lafarge Cement, Siddhi Vinayak Cement and Reliance Cement will keep prices under check.

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