Indian cement sector recovers
Indian cement sector is back on a double-digit growth trajectory after a gap of two months.
Cement companies like Aditya Birla Group's UltraTech Cement, Swiss major's Ambuja and Jaiprakash Associates have made healthy sales. Demand surge in housing activities, especially from semi-urban and rural regions helped the industry post better growth.The Index of Industrial Production (IIP) figure for April at 0.1 per cent came as a disappointment and car sales growth for May had already shown sluggishness with less than three per cent year-on-year growth, the cement industry has brought cheer to the markets.
The 330-million-tonne industry, the world's second largest after China, posted a rise of close to 13 per cent in its sales in May. The industry sold 20.25 million tonnes of the building material during the month compared with 17.9 million tonnes in the previous corresponding month. Demand picked up in several regional pockets and cement makers used the opportunity to liquidate their inventories before the monsoon spread.