- Indian cement sector sees a 5% price hike in Q1 FY26 despite low demand.
- UltraTech and JK Cement emerge as top buys amidst price surges.
- Bangladesh’s first private equity fund, LankaBangla 1st PE Fund, winds up due to poor investor response.
The Indian cement sector has demonstrated unexpected resilience, recording a 5% price increase in Q1 FY26 even as demand remained tepid.
Meanwhile, in Bangladesh, the LankaBangla 1st PE Fund is winding up after failing to attract sufficient investor interest. Established in 2019 with a target size of Tk25 crore, the fund managed to secure only Tk1 crore from its sponsor, LankaBangla Securities, and struggled to draw additional capital from institutional and high-net-worth investors.
LankaBangla PE Fund’s Early Exit Highlights Bangladesh’s Capital Market Challenges
Despite a challenging demand environment, the Indian cement sector has managed to secure a 5% price increase in Q1 FY26. UltraTech Cement and JK Cement have emerged as key beneficiaries, attracting investor attention for their strong market positions and pricing power. Analysts suggest that cement producers could continue to see steady margins if the current pricing trend persists.
In Bangladesh, the closure of the LankaBangla 1st PE Fund underscores the ongoing struggle to cultivate a robust private equity ecosystem. Launched in 2019 with a vision to foster alternative investments, the fund failed to meet its Tk25 crore target, raising only Tk1 crore. The Bangladesh Securities and Exchange Commission (BSEC) has endorsed its early wind-up after six years of underperformance.
Market experts attribute the fund’s closure to a lack of awareness about private equity investments and a nascent capital market. The BSEC introduced Alternative Investment Rules in 2015, but local institutional investors and high-net-worth individuals have yet to actively participate in private equity or venture capital funding.
The winding-up of LankaBangla 1st PE Fund serves as a cautionary tale for other aspiring funds in Bangladesh, emphasizing the need for stronger investor education and market infrastructure. It also raises questions about how effectively the local regulatory framework is supporting the growth of alternative investment funds in the region.
The contrasting scenarios in the Indian cement sector and Bangladesh’s private equity landscape reveal the critical role of market maturity and investor confidence in sustaining sectoral growth.
“Investing in emerging markets requires more than capital; it demands patience, market knowledge, and strategic vision.” — Unknown
