Demand for cement is likely to grow by 6 per cent in the current fiscal and further rise to 7 per cent in 2017-18, on improvement in infrastructure segment, says a report.
According to rating agency Icra, cement demand was relatively muted at 5 per cent in 2015-16. “Cement demand growth will pick up to 6 per cent in 2016-17 and further to 7 per cent in 2017-18… during the current fiscal, it is likely to be driven by the pick-up in the infrastructure segment – primarily road projects and housing segment,” Icra Ratings Senior Vice President Sabyasachi Majumdar said. “This apart, there is a likelihood of recovery in rural demand from the second half of the current fiscal given the expectations of a better monsoon,” Majumdar added. Icra also noted that cement demand would also be supported by the construction of a new capital for Andhra Pradesh and the focus on irrigation and water grid schemes by Telangana.