India: reason for optimism?
The first quarter of 2016 provided some basis for optimism for India’s cement producers as the sector reported double-digit expansion. However, in the months ahead, the monsoon season and the perennial overcapacity of the industry continue to haunt profitability.
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The amendment of The Mines and Minerals (Development and Regulation) Act
is expected to facilitate M&A in the cement sector
The first quarter of 2016 has seen India’s cement industry make a positive start to the year. It was the first time in six quarters that the sector noted double-digit growth. Market expansion during January-March reached 11.5 per cent, the highest in four years, on the back of a pick-up in construction activity, particularly in infrastructure and housing. Average monthly cement consumption surpassed the 25Mt mark, raising hopes that the sector is back on track.