Shree Cement Expects To Continue Outperforming Industry In FY22
Shree Cement Ltd. expects to outperform the industry even in the next fiscal, helped by growth across its key markets in northern and southern regions.
The cement maker is expected to deliver 1-2% incremental growth over the industry, Managing Director HM Bangur said in an interview with BloombergQuint. He pegged the industry’s growth at 9-10% for the financial year ending March 2022. High growth rates in the eastern region on account of a low base, according to Bangur, too, would help.
Besides, the industry takes 3-4% price hike every year, and the trend, he said, will continue in the next year as well.
That comes even as the Competition Commission of India initiated an investigation against alleged anti-competitive behavior by cement makers after Roads and Highways Minister Nitin Gadkari hinted at possible “cartelisation” and “black marketing technique” in the industry.
Bangur also lauded the budget and the government’s decision to let the fiscal deficit slip for achieving higher capital formation, which would provide the required impetus for the sector. The 25% cut in budgetary allocation for the affordable housing segment—which forms more than 50% demand for the cement sector—too, isn’t a negative as that would be offset by higher spend for railways and road, Bangur said.
Watch the full interview here: