Due to the cyclic nature of the industry, cement prices show large fluctuations. The prices tend to increase during the periods of high demand growth & high capacity utilization, and witness a downturn movement if the industry sees low capacity utilization. According to a recent report by RNCOS “Indian Cement Industry Outlook 2016”, the industry is witnessing serious downturn in cement prices since the mid of 2012-13. Due to a slowing economy, the construction activities have declined, impacting demand of cement, which has resulted in reduction of prices as supply surpassed demand.