After years of consolidation, the cement industry is in for strong growth. It is expected that an incremental demand will be higher than an incremental supply over next three years and the companies are unlikely to cut prices any further and would rather be able to sustain the recent prices that took place in the last few months, feel analysts.
With strong improvement in demand scenario leading to demand growth of 7% in FY18 and sustained demand growth in FY19 at 10%, we expect demand to moderate with 6% growth in FY20E despite all tailwinds in place to boost cement requirement. The demand is expected to remain healthy over the next 3 years.
