“All these companies are throwing a gigantic amount of cash and for them, there might be not any longer incessantly any debt or any of those monumental cement companies. I carry out no longer mediate steadiness sheet is any form of distress for them and I am pretty obvious that they’ve learnt their classes that volume would not carry in profits within the costs,” says Rakesh Arora, Managing Partner, Crawl India Advisors.
Is the distress that the Facet toll road is having about this ability addition within the cement sector justified or carry out you have confidence here is par for the path, equipped that the ask is predicted to rise as well within the field?
It is an overreaction to an identical old announcement that
has made. Be conscious that
Cement ability by the pause of FY23 is going to be 130 million tonnes. Now if the alternate is rising at 7-8%, they wish so that you just can add 10 to 11 million tonnes yearly and what they’ve presented is 22 billion tonnes over a two 12 months period.
It is perfectly based completely on the growth price and consumption that we are looking forward to. Obviously, the market is petrified whether or no longer with one other solid player, Adani, coming into the foray, there’ll be market piece wars or designate wars. I are inclined to vary from the market’s conception. It is no longer very easy to position capacities, especially greenfield tasks.
Greenfield tasks decide 8 to 10 years of
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