India cement sector to see recovery in FY13-14

India cement sector to see recovery in FY13-14
Published: 18 December 2012


India's cement industry is expected to see a sharp recovery in cement prices in FY13-14 with an improving supply and demand scenario, as well as government measures to fast-track infrastructure projects.

Reuters reports that Deutsche Bank believes cement companies such as UltraTech Cement and Shree Cement that have potential to increase capacity and have a bigger presence in western and northern India will witness "disproportionate benefits".  Meanwhile, Morgan Stanley maintains an 'attractive' view on the sector, and recommends investors to buy cement stocks on weakness because on expectations of easing capacity addition and pick-up in cement demand, in a report dated Friday.

In 2011, Indian cement consumption reached 236.87Mt and this is expected to increase to 241.8Mt in 2012, industry sources told CemNet news. Further growth is expected of around 10 per cent for 2013 and 2014, respectively,.