Summary:

India's cement industry is expected to grow by 70-75 million MT over the next two years, with 33-37 million MT coming from clinker capacity and the remainder from grinding capacity. In FY25, the industry is forecast to add 33-35 million tonnes, followed by 37-39 million tonnes in FY26. The majority of the growth will occur in the eastern and southern regions. ICRA predicts a slight increase in capacity utilization to 71% in FY25.

ICRA has revised its cement volume growth forecast for FY25 to 4-5%, or 445-450 million MT, down from 7-8%. This decline follows a slowdown in construction activity after the general election. However, rural demand is expected to rise in the second half of FY25 as agricultural earnings improve and urban housing demand remains stable. Despite this, operating profit per tonne is projected to decline by 12-15% YoY.

Source: IBEF

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