Cement sector sees demand recovering with Budget push

The infrastructure vertical comprises 17% of total annual cement demand

Cement companies are bullish about demand on account of the government’s focus on infrastructure and housing in the Union Budget. Finance Minister Arun Jaitley has raised the allocation for roads from Rs 57,976 crore in 2016-17 to Rs 64,900 crore in 2017-18, with a stress on laying 2,000 km of coastal roads.

Industry executives said cement comprised 30 per cent of the cost of laying a road and the budgetary allocation would translate into a Rs 19,470 crore opportunity for the sector. “I am bullish about the budgetary allocation and expect growth,” said HM Bangur, managing director, Shree Cement.

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