The cement industry is expected to add 30-40 million tonne of capacity in 2013 despite excess capacity built-up. The industry has a capacity of 324 million tonne per annum (mtpa) and operates at 75-80 per cent utilisation, due to weak cement demand from realty and infrastructure sectors.
In this 2013, the capacity addition will be more than expected as some of the projects that were slated for completion in 2012 got delayed and will now go on stream in 2013, said Shailendra Choksi, Director, JK Lakshmi Cement. The prospects of cement companies will depend on the revival in demand.
The southern and central region will witness much of the capacity addition, he added. Some of the major projects that will be completed during the year include ABG Shipyard’s 3.3 mtpa at Kutch in Gujarat and Century Textiles’ 2.5 mtpa at Chandrapur in Maharashtra. In Karnataka, Sagar Cement and Chettinad Cement will add 3 mtpa and 2.5 mtpa at Gulbarga, and UltraTech Cement will come up with 4.4 mtpa at Malkhed.
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