New Delhi, Jan 24 (KNN) The Indian cement industry is poised for substantial growth, with a projected addition of 150-160 million tonnes per annum (MTPA) in capacity over the next five years.

As revealed by the Crisil Market Intelligence and Analytics Report on Tuesday, this expansion strategy encompasses both organic and inorganic approaches.

It aims to address the anticipated surge in demand from the infrastructure and housing sectors, while also striving to secure a greater market share in an industry marked by high fragmentation and intense competition.

Over the past five fiscal years, the sector witnessed an increase of 119 MTPA in capacity, reaching an aggregate of 595 MTPA.

The upcoming fiscal year is anticipated to witness the commissioning of 70-75 MT of this new capacity, with a particular emphasis on the eastern and central regions of India.

Notably, prominent industry players are expected to contribute significantly, accounting for 50-55 per cent of the planned capacity expansion.

The report underscores a marginal 1 per cent dip in cement prices during April-December 2023, following four years of consistent growth.

Despite this noteworthy increase in capacity, the largest in over a decade, cement prices are forecasted to remain stable at Rs 390-395 per 50 kg bag, with utilisation rates expected to hover between 70-75 per cent.

The demand for cement is expected to experience a growth of 10-12 per cent in the current fiscal year, propelled by government initiatives in affordable housing and pre-election infrastructure spending.

However, in the subsequent fiscal year, demand growth is projected to moderate to 4-6 per cent, leading to a modest price uptick of 1-3 per cent, reaching approximately Rs 400-405 per 50 kg bag.

(KNN Bureau)