Breaking News

You are here » Indian-Commodity  :  Economy  :  Cement demand likely to register modest growth in FY18: ICRA

05-Dec2017

Cement demand likely to register modest growth in FY18: ICRA

Domestic credit rating agency, ICRA in its latest report has forecasted that India's cement demand is likely to register a modest growth of 1% in the financial year 2017-18, on the back of pick up in the housing segment both affordable and rural housing and; infrastructure segment, mostly road and irrigation projects.

According to the report, the cement offtake has continued to remain weak in the first half of the financial year (H1 FY18) and also in the month of October, owing to factors such as weak real estate activity, sand shortage and Goods and Services Tax (GST) implementation issues. ICRA also said that new project announcements from the private sector continue to remain weak and revival of public-private partnership is crucial to improve the pace of infrastructure development.

During seven months of FY18, the cement production reported de-growth of 1.6% to 165.6 million MT as compared to 168.3 million MT during 7M FY17. Besides, production declined by 3.3% in Q1 FY18 and by 0.4% in Q2 FY18 on a Y-o-Y basis. Demand during Q1 FY18 was adversely impacted due to various local issues across regions - in the North (especially in the states of UP and Punjab) the off-take was impacted by sand shortage and labour unavailability, while in the West the implementation of the Real Estate Regulatory Authority (RERA) Bill resulted in construction activity slowing down.


Related News

View all news

India needs revolution in farm sector to achieve 9-10% GDP growth: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant has stated that there is need to bring revolution in farm sector to attain 9-10% Gross Domestic Product (GDP) growth. He also said that there is a need to boost investment in......

ASSOCHAM pitches for growth rate of 8-8.5% per annum

In order to make India a $5 trillion economy by 2025, Industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) has come out with charter of demands and called on political parties......

PSBs likely to regain path of profitably in FY20 with expected fall in NPAs: ICRA

Rating agency ICRA in its latest report has stated that Public Sector Banks (PSBs) are likely to report net profit of Rs 23,000-37,000 crore in the next fiscal year 2019-20, after four years of consecutive......

Top News

View all news

RIL's telecom arm terminates agreement with Reliance Communications

Reliance Industries' (RIL) telecom arm -- Reliance Jio Infocomm (Jio) has terminated Master Agreement and Spectrum Trading Agreement executed between the company and Reliance Communications and its affiliates......

Hotel Leela Venture signs binding agreement with Brookfield

Hotel Leela Venture (HLVL) has entered into a binding agreement with a Brookfield Asset Management sponsored private real estate fund, to sell by way of slump sale, four owned Leela hotels located at Bangalore,......

Dr. Reddy's Laboratories launches B2B customer service portal 'XCEED'

Dr. Reddy's Laboratories has launched B2B customer service portal 'XCEED' to increase the operational efficiency. The portal is focused on meeting the growing demand for the company's portfolio of generic......