Cement, being high volume and low value commodity, is highly freight intensive, making cement industry a regional play. The Indian cement industry is relatively insulated from the global markets as cement exports and imports have been comparatively lower. The demand supply dynamics of the Indian cement industry are largely driven by the domestic consumption and supply. The cement industry witnessed a dismal demand growth in past few years. The slowdown in the real estate sector and delay in takeoff of various infrastructural projects in the period FY11-13 took a toll on the cement demand. Spiraling cost of capital, delays in execution of both infrastructure as well as industrial projects on account of land acquisition & environmental clearance hurdles and the economic slowdown adversely affected the offtake of cement. Even though, demand remained lack luster in FY13, the cement industry witnessed a marginal improvement in margins. The industry was able to pass on the increased cost burden to the consumers on the back of supply discipline followed by the cement players.