As India’s cement industry recovers from demonetisation, the October-December 2017 quarter brought new tests of strength. While demand showed unusually-high growth, increased fuel and raw material prices combined with muted growth forecasts took the shine off positive expectations for the year ahead.
While the impact of the government’s demonetisation policy had nearly eased off by September, fresh challenges were lying in wait for India’s cement producers. Poor demand, particularly in rural areas, amid subdued urban housing trends and a persistent shortage of sand, continued to impact India’s cement industry in the October-December 2017 quarter.
