Bloomberg is reporting that, following the recall of high-value currency notes in India, Ambuja Cement Ltd., a unit of LafargeHolcim Ltd., has stated that it will take until June for demand to rebound.
The cash ban has caused serious problems for the cement industry, where as much as 60% of business is done in cash. The company is hoping that demand will be restored by a government push for digital payments and low-cost homes, combined with the recent cut in interest rates.
According to Bloomberg, Ambuja shares have decreased by 12.4% since the announcement on 8 November, while UltraTech Cement shares dropped 15%. Emkay Global Financial Services analyst Sanjeev Kumar Singh has reported that this demand disruption is predicted to push down cement demand recovery by at least a year, leading to an expected from of 0.5% in the financial year 2016-2017, against an earlier estimate of 5.5% growth.
Read the article online at: https://www.worldcement.com/indian-subcontinent/06012017/ambuja-cement-predicts-limited-recovery-for-cement-demand/