Better prospects for firms

As indicated by a Credit Suisse report, prospects of cement companies may improve in the next two years as supply pressure eases and demand rises. Cement firms have been battling supply glut due to excess capacity that has been built in anticipation of strong demand from the infrastructure projects. But, infrastructure development slowed down considerably and demand failed to match the rise in supply. Now, capacity additions are likely to peak in 2013-14 and demand to be stronger in 2014-15.