Industry analysts feel that there would be capacity addition in the coming few years due to the growth in cement demand in the first nine months of the previous fiscal. According to a recent ICRA report on the sector, the industry is likely to add 25 million tonne per annum (mtpa) capacities in FY15, 23 mtpa in FY16 and 8 mtpa in FY17 as against the peak addition of 50 mtpa in FY10.
ICRA feels that after witnessing all-time low demand and profitability in FY14, the domestic cement industry has shown some recovery in FY 15. The growth in cement production picked up to 7.9 per cent in 9M FY15 as against 3.7 per cent in the corresponding period last year and 3.0per cent in FY14.