Business News›Markets›Stocks›News›Consolidation push to continue as key raw material gets scarce: 11 small cap cement stocks which fit the bill and may see some action
Invest with Confidence. Lead with Insights.
Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.
Consolidation push to continue as key raw material gets scarce: 11 small cap cement stocks which fit the bill and may see some action
Synopsis
In less than a month, two cement majors clearly showed their intent. The intent is to grow through an inorganic route. One by complete acquisition, the other by taking a large stake in the company. Another common thing, both of them are focussed on the southern part of India, where the cement companies have a history of being under pressure. So why are they looking toward southern India? The answer lies in something else. It is one of the key raw materials that have become scarce and that is what is leading to a situation where big players clearly know that if they have to grow their capacities they have to pick on companies which have access to that critical raw material. This aggressive consolidation is likely to continue and it is the smaller players which are likely to be targeted.
There have been many sectors which have been going through consolidation in the last five years. Some due to IBC, other due to the fact that industry has gone through a tough phase of pain, consolidation is the natural outcome. The reason, in such industries the players who have grown big tend to become bigger by consolidation because small players tend to lose their efficiency as the times goes by. Because cement is an industry which is
ETMarkets.com
16 mins read, Last Updated:
Gift A Story
Share member-only stories with your friends or family and help them read it for free.
Gifting Limit Reached!
Hey , no more stories left for you to gift.
No worries! You will get a limit of 15 stories next month to share with your friends and family.
Get Unlimited Access to The Economic Times
