Cement firms to see lowest growth in a decade at 5 per cent

Cement firms to see lowest growth in a decade at 5 per cent

The cement sector may witness its lowest growth in a decade in 2012-13. It is expected to report only 4-5 per cent demand growth year-on-year with construction activity slowing down significantly across the country.

January-March is considered to be the peak season for cement companies as construction work picks up on the back of developers and other construction companies gearing up to complete projects before the arrival of monsoon.

Government projects too speed up as they try to complete it before the end of the financial year. However, this year, the scenario is different as many infrastructure projects are on hold and real estate sector has slowed down. Also lower availability of wagons and shortage of building material has resulted in construction slowdown. Vinita Singhania, managing director at JK Lakshmi Cement, told Financial Chronicle, 'The peak season is almost over and demand is just not there. Only in January, we witnessed slightly improved demand, while February and March have been bad. Singhania said while projects have been announced, they were not being executed. Unless construction activity in real estate and infrastructure picks up, the situation would not improve. The sector will witness around 4.5-5 per cent growth in 2012-2013, which is very low compared with the double-digit growth witnessed earlier, she added.

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