Slow revival predicted for cement demand
Managing Director of India Cements N Srinivasan has stated that the Indian cement industry, which has been beset by cyclical demand, structural overcapacity and a nearly Rs 7,000-crore fine by the Competition Commission, is hoping to see a slow revival in 2013.
Srinivasan pointed to three major reasons for the 'pall of gloom' surrounding the industry and general business sentiment. The first one was the global slowdown caused by the financial crisis. There was also a drop in investment in infrastructure and housing coupled by a high interest rate regime.
The return of inflation and an across-the-board increase in prices of power, freight and the like too had contributed to the `gloom' situation. Growth in the South, which has been the company's strong point, has pulled down. But the company is now hoping for a revival as it is seeing signs of slow growth. However, much of this depends on how the economy bounces back, and whether investment goes into housing and infrastructure, he said.
He cautioned that the revival would still depend on various factors, including the types of stimulus present in the coming budget.