J K Cement expects the government’s infrastructure push to drive cement demand in India in the next two years.

“We expect demand to hit seven per cent in FY17 and eight percent in FY18,” said the company’s CFO, AK Saraogi. He added that compared to last year there has been a sizeable change in the real estate and developer market and a turnaround has started to happen.

“Railways, metro, roads and transport, the smart cities initiative would all have a trickle-down effect on the cement sector and we hope to benfit out of that. We hope to achieve a 100 per cent capacity utilisation on the back of these projects. At present it is at around 74 per cent,” said Mr Saraogi.

The company expects demand also to be positively impacted by good monsoons, which is forecast to boost spending, particularly in rural areas.

According to ratings agency ICRA, cement consumption is likely to grow by six per cent in the current financial year and will further rise to seven per cent in FY18, from the relatively subdued five per cent in FY16.