Cement companies forecast 6-8% demand growth in FY17

India Infoline News Service | Mumbai | May 02, 2016 07:34 IST

The companies have projected a 6-8% growth in cement demand in FY17 compared to ~3% in the previous fiscal year, says the financial newspaper.

The country’s top three cement producers - Ultratech Cement ACC and Ambuja Cements - are expecting a revival in cement demand during the current financial year, reports a business daily.
The companies have projected a 6-8% growth in cement demand in FY17 compared to ~3% in the previous fiscal year, says the financial newspaper.
These forecasts are predicated on expectations of improved demand from the infrastructure and housing projects backed by the Centre as well as various state governments, according to the paper.
“A significant component of infrastructure demand is driving growth. Pay commission disbursements would happen (and that) will also trigger housing growth," Ultratech Cement CEO Atul Daga has been quoted as saying.
"Roads, hydel projects, metro projects, and low income housing projects in the infrastructure segment are doing good," Daga told the daily.
On 13th April, Harish Badami, MD & CEO of ACC told shareholders at the company’s annual general meeting (AGM) that demand growth is projected to touch 6% in calendar year 2016 compared to 2% in 2015.
“It’s not unreasonable to foresee cement demand enjoying a compounded growth rate of 6-7% over the next five years,” N.S. Sekhsaria, Chairman for Ambuja Cements said in a letter to shareholders. 
According to its FY17 outlook report released on 1st February, India Ratings estimates cement sector demand growth in the range of 4-6%.
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.