>FUNDAMENTAL ANALYSIS ON CEMENT SECTOR

CEMENT INDUSTRY
■ India is the world’s second largest producer of cement after China with industry capacity of over 200 million tonnes (MT)

■ Total installed capacity was 204.29 MT as on August 31, 2008

■ Total despatches has been 100.17 MT during April–October 2008–09 100.96 MT during April–October 2008–09.

CEMENT INDUSTRY ANALYSIS
■ India’s cement consumption grew 9.6% yoy.
■ South market witnessed strong demand supporting firm pricing (up 4.7% yoy) in the region.
■ The key concern dip in construction and infrastructure activities in the country.
■ Contradictory pricing trend emerge; realizations remained robust in South
■ Capacity utilization improves MoM but remains lower yoy
■ Key performers were players who have recently added capacities
■ Coal prices cool from peak; freight index fell to the lowest levels since 2002.

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