Weak operating environment in 2011-12 for cement manufacturers: CRISIL

MUMBAI: Cement manufacturers are expected to witness weak operating environment in 2011-12 due to the large capacity build-up and the growing trend in input costs, stated Credit Rating and Information Services of India Ltd. (CRISIL).
CRISIL is expecting additional cement capacities of nearly 70-million tonnes to come on stream in 2010- 11 and 2011-12. Although, demand growth has been lagging but demand grew by only 4-5% in the nine months ended December 31, 2010, as against around 10-11% during the corresponding period of the previous year.
CRISIL-rated players have registered a 23% rise in power, fuel, and freight costs for the quarter ended December 31, 2010.

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