Cement dealers expect 30 per cent demand contraction

Building Material

Cement dealers across the country expect a significant slackening in sales, elongated credit period to retailers, and higher working capital needs this fiscali n the wake of the COVID pandemic, reveals a CRISIL Research survey. The survey was conducted with over 100 dealers spread across Tier-1 and Tier-2 centres in 13 states to glean insights on the pandemic’s impact. Trade channels account for around 60 per cent of annual cement sales. A whopping 93 per cent of the respondents said they expect volumes to shrink 10-30 per cent in fiscal 2021 in the base case scenario, ie the lockdown easing in May. Extension beyond this can worsen these figures. Also, 70-80 per cent dealers felt individual home builders would delay new construction.