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Concrete

Cement industry to add 75 million MT capacity despite slower growth

Despite this expansion, capacity utilisation is forecasted to remain moderate.

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India’s cement industry is set to expand by 70-75 million metric tonnes (MT) over the next two years, according to ICRA. Of this, 33-37 million MT will come from clinker capacity, while grinding capacity will account for the remainder.

In FY2025, 33-35 million MT of capacity is expected to be added, with 37-39 million MT projected for FY2026. The eastern and southern regions will lead this growth, contributing 38-40 million MT collectively over the two fiscal years. Despite this expansion, capacity utilisation is forecasted to remain moderate, improving slightly to 71% in FY2025 from 70% in FY2024, driven by increased cement production.

ICRA revised its growth outlook for cement volumes in FY2025, lowering the expected year-on-year growth to 4-5% (445-450 million MT), down from the earlier estimate of 7-8%. This adjustment is attributed to a slowdown in construction activities in the housing and infrastructure sectors, following the General Elections.

However, the second half of FY2025 (H2 FY2025) is expected to see recovery, driven by strong rural consumption due to healthy monsoons, robust kharif crop output, and high reservoir levels supporting rabi sowing. Urban housing demand is also likely to support cement volumes.

Despite these positive trends, the operating profit per tonne (OPBITDA/MT) of cement companies is projected to decline by 12-15% year-on-year in FY2025, to Rs 820-850 per tonne, according to Tushar Bharambe, Assistant Vice President and Sector Head, Corporate Ratings at ICRA.

Increased government spending on infrastructure projects is anticipated to boost construction activity in H2 FY2025, offering further support to the cement sector. However, overall profitability is expected to remain under pressure for the fiscal year. (ET)

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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