After five long years of limited demand growth, India’s cement producers are poised to make the most of the domestic market recovery underway. There have also been cement pricing improvements which are expected to lead to better profitability. While regional variations exist in terms of supply and demand as well as on the pricing front, a generally more positive mood now prevails.
Following Narendra Modi’s government taking office earlier this year, increasing confidence and improving economic factors have started to impact positively on the Indian cement industry. Renewed activity is being reported on previously-stalled construction projects and the resumption of such activity is expected to drive cement demand growth rates up, leading to more profitable levels as prices increase.
