UltraTech Cement - August 2015
India and the UAE have announced plans to create a multi-billion dollar fund to invest in India’s infrastructure sector. The fund, which plans to raise up to US$75bn, will be focused on next generation projects including railways, ports, roads, airports, industrial corridors and parks.
Although no time frame has been given, or details on how the fund will be financed or structured, UltraTech Cement will be among the cement companies hoping the new fund will bring with it an increase in cement demand. India has long been struggling with an imbalance between demand and supply with a lack of government tenders, sharp decline in rural sales and an all-time high real estate inventory leading to single-digit growth in the cement sector for the last five years.
With little more than four per cent growth forecast for 2015/16, all eyes will be on the new fund to fuel a much-needed expansion in cement consumption.