Rural Demand to Benefit Cement Sector
Indian cement companies are hoping for revival of demand in the rural areas, paced by sales to individual home builders and government-led affordable housing, even as bigger infrastructure and real estate projects in metro cities remain suspended due to the lockdown curbs and migration of labourers. Tier-2 and -3 cities are better placed than metros with less number of cases and limited labour availability issues, as per the cement sector update report by Edelweiss. Even for government-led projects, rural India is better. Affordable housing and NHAI projects are continuing, and the government is also building new hospitals and facilities in rural areas, a positive for cement companies. Another report by CRISIL pointed out that recovery in urban areas will take longer due to higher dependence on migrant workers as against rural areas, where engagement of migrant labourers is just 30% compared with 80-85% for urban regions.
Tags : ALLIED Real Estate Affordable Housing Crisil Rural Demand Cement Sector NHAI projects Tier-2 and -3 cities Edelweiss rural India