Indian cement producers cautious on government promises
H M Bangur, Managing Director of Shree Cement, was equally cautious. He told the newspaper: 'In the past, during election years, spending used to be higher and projects used to pick up. However, whether the recent slew of assurances by the government will actually translate into growth is something that will emerge with time. Industry will see most units operating at 80 85 per cent of their total capacity.'
Meanwhile, input costs have increased, putting further pressure on margins. The Indian cement industry has long been a story of 'wait and see', with millions of dollars of infrastructure improvements scheduled to take place in the coming years. Once these begin to take affect, the demand/supply balance will alter dramatically.