Cement demand rises but utilisation to remain moderate, ICRA report
Cement

Cement demand rises but utilisation to remain moderate, ICRA report

Cement volumes are likely to increase by 7-8 per cent in FY23 to roughly 388 million MT, boosted by demand from the housing, both rural and urban, and infrastructure sectors, according to a research released on Monday by ratings agency ICRA.

The large rise in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates over FY2022 revised estimates, headed by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways, is projected to bode well for cement demand, according to the report.

Cement capacity additions are likely to expand to roughly 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, owing to solid demand prospects. In FY2023, the eastern area is predicted to dominate the increase, adding over 16-17 MTPA, followed by the central region, which will add roughly 6-7 MTPA. Despite an estimated increase in volumes of 7-8 per cent, capacity utilisation in the cement sector is expected to remain moderate at approximately 68 per cent on an expanded base.

Cement volumes are likely to increase by 7-8 per cent in FY23 to roughly 388 million MT, boosted by demand from the housing, both rural and urban, and infrastructure sectors, according to a research released on Monday by ratings agency ICRA. The large rise in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates over FY2022 revised estimates, headed by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways, is projected to bode well for cement demand, according to the report. Cement capacity additions are likely to expand to roughly 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, owing to solid demand prospects. In FY2023, the eastern area is predicted to dominate the increase, adding over 16-17 MTPA, followed by the central region, which will add roughly 6-7 MTPA. Despite an estimated increase in volumes of 7-8 per cent, capacity utilisation in the cement sector is expected to remain moderate at approximately 68 per cent on an expanded base.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code