Cement Annual Review July 2009

CRISIL Ltd.
July 31, 2009
108 Pages - SKU: CRSL2433826
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Cement sector has witnessed an impressive run over the past few years, with an improvement seen across key operational parameters such as operating rates, prices and profitability. Housing sector is the single largest consumer of cement in India. Over the last 5 years, India has witnessed a real estate boom, especially in the metros and tier I cities. This has been the primary driver for cement demand, which has grown at a healthy CAGR of 9.3 per cent over the past 5 years. Going forward, CRISIL Research expects cement demand growth from housing segment to slow down. However, this will be offset to an extent by an increase in cement consumption from the infrastructure sector. In addition, an increase in independent housing projects in semi-urban and rural areas will provide support to cement demand. As a result, we expect cement demand to register a CAGR of 7.8 per cent over the next 5 years.


 

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