India: reason for optimism?

Published 17 August 2016

The first quarter of 2016 provided some basis for optimism for India’s cement producers as the sector reported double-digit expansion. However, in the months ahead, the monsoon season and the perennial overcapacity of the industry continue to haunt profitability.

The amendment of The Mines and Minerals (Development and Regulation) Act

is expected to facilitate M&A in the cement sector

The first quarter of 2016 has seen India’s cement industry make a positive start to the year. It was the first time in six quarters that the sector noted double-digit growth. Market expansion during January-March reached 11.5 per cent, the highest in four years, on the back of a pick-up in construction activity, particularly in infrastructure and housing. Average monthly cement consumption surpassed the 25Mt mark, raising hopes that the sector is back on track.

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