Now Reading: Cement, FMCG firms see demand revival, price hikes cushioned
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Cement, FMCG firms see demand revival, price hikes cushioned
Cement makers expect industry volume growth of 7-8 per cent in FY27, driven by government infrastructure spending and housing demand, despite higher fuel and freight costs linked to the West Asia crisis.…
The Story in Brief
Cement makers expect industry volume growth of 7-8 per cent in FY27, driven by government infrastructure spending and housing demand, despite higher fuel and freight costs linked to the West Asia crisis. UltraTech CFO Atul Daga called the cost pressure a real headwind, while Ambuja Cements projected its own volumes up 8 per cent. Dalmia Bharat plans capex of Rs 3,200-3,400 crore and UltraTech Rs 8,000-10,000 crore annually.
Fast-moving consumer goods firms are also optimistic. Hindustan Unilever, Dabur, Marico and others say calibrated price hikes of around 5 per cent have protected demand, and fears of a K-shaped recovery are receding. Crude prices, which spiked to $126 a barrel, have stabilised below $80, and the monsoon deficit has narrowed from 35 per cent to 13 per cent, easing rural demand worries.
The Indian Opinion
The market chatter paints a neat picture: war shocks absorbed, demand intact, K-shaped recovery avoided. But one quarter of stable crude and a slightly better monsoon is thin proof. Cement pricing depends on logistics, not just oil, and FMCG volume gains are untested against full pass-through of costs. Watch whether the monsoon deficit keeps shrinking through August and whether crude stays under $80. If either slips, the calm could be short-lived.
Sources (2): millenniumpost.in, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
