new delhi north indias cement market which currently accounts for 31 per cent of countrys total consumption is expected to make a recovery only by fy 201718 on account of demand revival in the infrastructure sector according to a report historically north india is a wellbalanced market with high capacity utilisation low fragmentation and little inward dispatch threat from other manufacturing regions but a large proportion of the cement market is dependent on rural or retail sales ambit capital said in a report a confluence of growth impediments slowdown in rural sales weak demand for organised housing and elusive infrastructure recovery have further deteriorated cement demandpricing in north india north indias large share in major infrastructure projects exudes hopes of demand upcycle but we believe it will take until fy18 for a meaningful recovery it added in 201415 north india consumed 79 million tonnes or 31 per cent of indias cement consumption the report said while 201516 was mooted to be a recovery year demand has worsened as rural sales decline sharply real estate inventory has hit an alltime high and infrastructure recovery remains elusive with weak government tendering it said increasing prominence of regional manufacturers in a market with limited logistic challenges largely roads has led to price wars now prices in north india are at a 35 per cent discount to south india it added regional players accounted for 51 per cent capacity share in 201415 as against 45 per cent in 200607 north india is facing growth challenges on account of infrastructure recovery remaining elusive and rural demand deteriorating significantly in the last one year due to poor rainfall low subsidies wage growth and paltry msp hikes besides real estate business is facing liquidity constraints due to governments clampdown on black money the report said it has projected that north india will be a key beneficiary of the infrastructure ramp up in india given a majority share in large infrastructure projects roads delhi mumbai industrial corridor etc however a strong and sustained volume growth will take till 201718 as retail demand will recover with a few quarters lag to infra demand the report said regional manufacturers with scale and cost efficiencies will benefit the most in an infraled cement demand recovery it added panindia players trade at rich valuations run earnings downgrade risks and do not have the best cost efficiency to meaningfully improve roces as volumes might grow but chances of a sharp pricing recovery are scanty it said