Cement industry to add 75 million MT capacity despite slower growth

02 Dec 2024 CW Team

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)

Infrastructure Urban

09 Mar 2026

Flender Inaugurates Wind Gearbox Test Rig In Chennai

Chennai, 6 March 2026: Flender has inaugurated a 13.5 MW wind turbine gearbox test rig at its Walajabad facility near Chennai, marking the installation of the largest test rig of its kind in India. The facility was inaugurated on 5 March in the presence of Andreas Evertz, CEO, Flender Group; Lars Wiegemann, Vice President – Wind Gears; and Vinod Shetty, CEO, Flender India.The test rig has been developed to support testing and validation of wind turbine gearboxes, strengthening the company’s capabilities in the renewable energy sector. The commissioning was completed within three months thr..

BMW Industries partners with IOCL for PNG supply at Bokaro plant

BMW Industries has entered into a strategic partnership with Indian Oil Corporation (IOCL) for the supply of Piped Natural Gas (PNG), reinforcing its commitment to adopting cleaner and more efficient energy sources for its operations.The agreement was signed at the Eastern Region Pipelines (ERPL) headquarters in Kolkata. The partnership is expected to support the company’s upcoming manufacturing facility in Bokaro by facilitating the use of natural gas as a primary energy source.According to the company, the adoption of PNG will help enhance operational efficiency while also contributing to ..

Bombay Realty Secures RERA for Three ICC Tower in South Mumbai

Bombay Realty, the real estate arm of Bombay Dyeing and part of the Wadia Group, has received Real Estate Regulatory Authority (RERA) certification for Three ICC – Wing A, the latest luxury residential tower at Island City Center in Mumbai’s Dadar.The RERA registration marks a key milestone in the development timeline and reinforces the company’s focus on regulatory transparency, timely project delivery, and high construction standards.Following the success of One ICC and Two ICC, the upcoming Three ICC tower represents the next phase of the Island City Center development. The project ai..