South India, which has been a depressed cement market for the past 2-3 years primarily due top over capacity, is now poised for a smart recovery.
Analysts are of the opinion that the region is set to witness a healthy price recovery after the end of the monsoon.
What has also acted in favour of the region is the Grasim-Larsen & Toubro deal. The combine is a clear market leader in the southern pocket and alliance is expected to maintain price discipline in the region.
More From This Section
Also, a sudden pick-up in construction activities in the region, particularly Karnataka and Andhra Pradesh, has seen cement consumption rise by around 18 per cent during the the region last year compared with the previous year.
Said a Mumbai-based cement analyst,