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 Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..