Aditya Birla group-controlled Grasim Ltd today said that cement prices will remain under pressure over the next six to eight quarters due to oversupply.
"Cement prices are expected to remain under pressure due to an oversupply scenario," Grasim Whole-Time Director and CFO Adesh Gupta told reporters here. Cement prices are under pressure across the country and particularly in the South.
The oversupply is due to new capacity addition, Gupta said. The uptrend in input prices, like the increase in imported and domestic coal prices and the increase in diesel prices, has also hit the cement industry. However, the company expects cement demand to grow at 10 per cent for the next five years on the back of growth of the overall Indian economy, which will result in increased cement consumption, both in the government and private sector, Gupta said.