According to a recent report by Investment Information and Credit Rating Agency (ICRA), the market share of the top five cement companies increased from 45 per cent in 2015 to 54 per cent in 2023 and is anticipated to reach
55 per cent by 2025. This consolidation is driven by strong demand prospects, leading companies to expand through mergers and acquisitions.
Consolidation facilitates synergies that enhance cost reduction and operational efficiency. Acquisitions grant access to additional capacities and resources, resulting in significant savings on capital expenditures. The revenue growth is projected at 9-10 per cent, with operating margins expected to improve by 80-100 basis points. While debt levels are expected to rise in FY ’25 due to capital expenditures, debt protection metrics are forecasted to remain favourable.