Post demonetisation, cement industry revival may take another year
HDFC Securities has said in its latest report that the expected recovery in the cement sector may take another year. It has also cautioned against a longer slump in the unorganised real estate market, due to the aftermath of demonetisation, a sector which drives a large proportion of cement sales.
The report says that until October, cement demand had grown by 5.1 per cent year-on-year. Strong monsoons had also raised the expectation of a demand revival in Maharashtra, Telangana and Karnataka. However, HDFC Securities says that things have "taken a turn for the worse" post demonetisation.
Demand declined by 25-30 per cent in North Central India and by 15-30 per cent in West and South India.