Crisil: Cement prices may decrease 1-3% despite strong demand

22 Jun 2023 CW Team

The Crisil report emphasised the growing competitiveness within the industry. Since the beginning of 2023, there has been a moderation in cement prices, which can be attributed to the gradual decrease in energy costs and the efforts of manufacturers to capture a larger market share in the seasonally strong fourth quarter.

Even though carrying high-cost inventory, the average prices of cement decreased by 1 percent to Rs 388 per bag during the fourth quarter of the previous fiscal year. However, when compared to the previous year, the prices remained elevated.

As per the report, there were no pre-monsoon price hikes in April and May of the current fiscal year, which is a departure from previous years. This occurred despite a consistent demand. The top five players in the market accounted for a 55 percent volume share in the previous fiscal year, as opposed to 49 percent before the Covid-19 pandemic.

The report cited Hetal Gandhi, the director of research at Crisil Market Intelligence and Analytics, who mentioned that Crisil MI&A Research expects a strong growth in cement demand this fiscal year, ranging from 8-10 percent year-on-year. Gandhi also predicted a decline of approximately 2 percent year-on-year in cement prices, reaching Rs 382-385 per bag. This decline is expected to be influenced by a relatively moderate growth in the trade segment.

Furthermore, the report highlighted a favourable situation regarding input costs. The decrease in Australian coal prices, along with the easing of international and domestic pet coke prices, is anticipated to lead to a decrease in cement prices.

According to the report, the expected corrections in diesel and crude oil prices are likely to alleviate the cement industry's burden of high costs and declining profitability.

Also read:
Shree Cement expanding manufacturing capacity
Kamdhenu Paints aims four-fold revenue growth, targets Rs 10 bn by 2028

Crisil report suggests that the cement prices may witness a decline of 1-3% in the current fiscal year, despite the presence of a strong demand. The report also mentioned that the prices of cement had been steadily increasing over the past four years, with a compound annual growth rate (CAGR) of 4%. This led to a record high price of Rs 391 per 50 kg bag in the previous fiscal year. The Crisil report emphasised the growing competitiveness within the industry. Since the beginning of 2023, there has been a moderation in cement prices, which can be attributed to the gradual decrease in energy costs and the efforts of manufacturers to capture a larger market share in the seasonally strong fourth quarter. Even though carrying high-cost inventory, the average prices of cement decreased by 1 percent to Rs 388 per bag during the fourth quarter of the previous fiscal year. However, when compared to the previous year, the prices remained elevated. As per the report, there were no pre-monsoon price hikes in April and May of the current fiscal year, which is a departure from previous years. This occurred despite a consistent demand. The top five players in the market accounted for a 55 percent volume share in the previous fiscal year, as opposed to 49 percent before the Covid-19 pandemic. The report cited Hetal Gandhi, the director of research at Crisil Market Intelligence and Analytics, who mentioned that Crisil MI&A Research expects a strong growth in cement demand this fiscal year, ranging from 8-10 percent year-on-year. Gandhi also predicted a decline of approximately 2 percent year-on-year in cement prices, reaching Rs 382-385 per bag. This decline is expected to be influenced by a relatively moderate growth in the trade segment. Furthermore, the report highlighted a favourable situation regarding input costs. The decrease in Australian coal prices, along with the easing of international and domestic pet coke prices, is anticipated to lead to a decrease in cement prices. According to the report, the expected corrections in diesel and crude oil prices are likely to alleviate the cement industry's burden of high costs and declining profitability. Also read: Shree Cement expanding manufacturing capacityKamdhenu Paints aims four-fold revenue growth, targets Rs 10 bn by 2028

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..