Cement manufacturers eye expansion in eastern India
Cement

Cement manufacturers eye expansion in eastern India

The cement industry is now eyeing capacity expansion in eastern India with most players investing in this region.

Shree Cement has announced a Rs 600 crore investment in West Bengal to establish a cement grinding mill. UltraTech is adding nearly 7 mt to its existing base of nearly 120 mt.

After acquiring Jajpur Cements, Sagar Cements is expected to expand its capacity in the region.

Nuvuco Vistas, owned by Nirma, made the most ambitious venture when it bought out two existing businesses Lafarge and Emami for Rs 14,900 crore, giving them a capacity of 19.5 mt.

For the fiscal year 2012, the total installed capacity in the East was 50 million tonnes per annum (mtpa), while the total national capacity was 350 mt.

The lack of a housing boom, combined with an insufficient focus on infrastructure, did not contribute to its growth.

From a total base of 537 mt, capacity has increased to 111 mt in FY21.

By some margin, it is the second-largest region by pecking order. West and Central are both at 71 mt, whereas North is at 104 mt. The South is the largest at 181 mt.

Increased demand will provide companies with more pricing power or the ability to pass on price increases to consumers.

Rashesh Shah of ICICI Securities predicted earlier this year that cement capacity in the east would reach 131 mt in FY23, based on a national base of 587 mt.

It states that despite capacity additions, utilisation levels in the east (central and north) are expected to remain above 80% until FY23.

Image Source


Also read: Cement industry targets 80 mt capacity addition in next 3 years

Also read: Ambuja Cements to add 20 mtpa capacity at Rs 10k cr

Also read: Ramco Cements plans Rs 636 cr capacity expansion in Tamil Nadu

The cement industry is now eyeing capacity expansion in eastern India with most players investing in this region. Shree Cement has announced a Rs 600 crore investment in West Bengal to establish a cement grinding mill. UltraTech is adding nearly 7 mt to its existing base of nearly 120 mt. After acquiring Jajpur Cements, Sagar Cements is expected to expand its capacity in the region. Nuvuco Vistas, owned by Nirma, made the most ambitious venture when it bought out two existing businesses Lafarge and Emami for Rs 14,900 crore, giving them a capacity of 19.5 mt. For the fiscal year 2012, the total installed capacity in the East was 50 million tonnes per annum (mtpa), while the total national capacity was 350 mt. The lack of a housing boom, combined with an insufficient focus on infrastructure, did not contribute to its growth. From a total base of 537 mt, capacity has increased to 111 mt in FY21. By some margin, it is the second-largest region by pecking order. West and Central are both at 71 mt, whereas North is at 104 mt. The South is the largest at 181 mt. Increased demand will provide companies with more pricing power or the ability to pass on price increases to consumers. Rashesh Shah of ICICI Securities predicted earlier this year that cement capacity in the east would reach 131 mt in FY23, based on a national base of 587 mt. It states that despite capacity additions, utilisation levels in the east (central and north) are expected to remain above 80% until FY23. Image Source Also read: Cement industry targets 80 mt capacity addition in next 3 years Also read: Ambuja Cements to add 20 mtpa capacity at Rs 10k cr Also read: Ramco Cements plans Rs 636 cr capacity expansion in Tamil Nadu

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