Cement demand to rise mid-to-high single digits in medium-term

17 Jun 2022 CW Team

Fitch Ratings told the media that it believes a sustained gross domestic product (GDP) growth, the government's thrust on infrastructure and affordable housing, and revival of corporate capex will underpin the growth in the cement industry.

It expects India's cement demand to increase by mid-to-high single digits over the medium term after an estimated mid-teen rebound in FY22.

The cement industry's utilisation will drop to 65% from 70%, estimated in FY22, as faster new capacity additions will outpace demand growth.

It will temper cement producers' pricing power, and the industry will consolidate further.

Fitch Ratings said Adani Group's aggressive approach to cement capacity expansion after it acquired Holcim Indian business. It will result in increasing the competition in the industry.

The increased prices by cement producers will not fully counter the energy prices due to the Russia-Ukraine war.

It said that the cement producers' per tonne margin in FY23 will stay much below the pandemic level in FY21 when low energy prices increased profit despite having low demand.

Major cement industries reduced financial leverage since FY20 to support financial flexibility despite lower profitability and plans for higher capital expenditure (capex) expansion.

Fitch Ratings added that the impact of inflationary pressure on cement demand from the Russia-Ukraine war had been limited, but downside risks might increase if macroeconomic conditions deteriorate significantly.

Image Source

Also read: India’s coal imports likely to grow in 2022: Fitch Ratings report

Infrastructure Urban

09 Jan 2026

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant advancement in the company's commitment to engineered performance, manu..

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..