Pre-election spending is another important catalyst which will drive cement demand. With large part of the additions in the form of grinding units, clinker utilisations are likely to remain higher than cement utilisations, indicating a higher effective utilisation rate. We believe the sector will undergo a healthy consolidation over the coming years. We expect large players with net cash balance sheet will follow inorganic growth to increase or maintain market share, which augurs well for mid-cap /small cap players, as they will get better valuations. Consolidation is a win-win for both the acquirer and the target companies on account of valuation disparity (mid-caps trade at 40% discount to large cap on EV/tonne). Recent acquisition of Jaypee assets by Dalmia and purchase of limestone mine by JSW from India Cements are pertinent cases.