How can cement companies protect their margins when everyone is expanding capacity?
In the last two-three quarters, cement companies benefited from the lower cost of raw materials. That is a seasonal thing. On a macro level, there will have to be more rationalizing (of) the cost structure, and introduction of superior marketing strategies. Looking at the overcapacity problem in another way, we are all projecting a 7% growth for cement sales based on GDP (gross domestic product) growth. If economic growth improves and the government executes its plan on infrastructure, this overcapacity situation may not last at all. ravi.k@livemint.