Demand for cement to improve over next 12-18 months
Cement

Demand for cement to improve over next 12-18 months

India’s infrastructure-led investments and mass residential projects will drive up the demand for cement and other building materials over the next 12-18 months, Moody’s Investors Services said in a report.

According to rating agency, India’s cement production will climb by around 6-8% over fiscal years 2023 and 2024, following a 21% jump for the fiscal year ended March 2022.

However the industry is unlikely to enjoy unusually high profits as it did in fiscal 2022, it added.

“A growing housing sector, which typically accounts for 60%-65% of India’s cement consumption, will remain a key demand driver. Also, continued large investments in roads and infrastructure projects will fuel cement demand," Moody’s said.

“India built 12,000 kilometers of highways in 2022 alone and this momentum will likely continue in 2023 and 2024, supported by various government initiatives," it added.

Furthermore, in the Union Budget 2023-24, the government has allocated $1.8 billion for the creation of safe housing, clean drinking water and sanitation, and increasing road and telecom connectivity, among other initiatives.

The government has also allocated $9.6 billion to address urban housing shortages, the credit rating agency said.

Moody’s said that while the outlook looks promising for the cement sector, for most of the current financial year, companies have seen their profitability take a hit on rising costs of pet coke, coal and diesel.

“A sequential, quarter-on-quarter decline in these costs will prevent a further sharp decline in profitability, although a return to the unusually high profits cement producers enjoyed in fiscal 2022 is highly unlikely," it added.

Also Read
Families to relocate in phase II development of Noida airport
HAL gets approval for indigenously developed 'black boxes'

India’s infrastructure-led investments and mass residential projects will drive up the demand for cement and other building materials over the next 12-18 months, Moody’s Investors Services said in a report. According to rating agency, India’s cement production will climb by around 6-8% over fiscal years 2023 and 2024, following a 21% jump for the fiscal year ended March 2022. However the industry is unlikely to enjoy unusually high profits as it did in fiscal 2022, it added. “A growing housing sector, which typically accounts for 60%-65% of India’s cement consumption, will remain a key demand driver. Also, continued large investments in roads and infrastructure projects will fuel cement demand, Moody’s said. “India built 12,000 kilometers of highways in 2022 alone and this momentum will likely continue in 2023 and 2024, supported by various government initiatives, it added. Furthermore, in the Union Budget 2023-24, the government has allocated $1.8 billion for the creation of safe housing, clean drinking water and sanitation, and increasing road and telecom connectivity, among other initiatives. The government has also allocated $9.6 billion to address urban housing shortages, the credit rating agency said. Moody’s said that while the outlook looks promising for the cement sector, for most of the current financial year, companies have seen their profitability take a hit on rising costs of pet coke, coal and diesel. “A sequential, quarter-on-quarter decline in these costs will prevent a further sharp decline in profitability, although a return to the unusually high profits cement producers enjoyed in fiscal 2022 is highly unlikely, it added. Also Read Families to relocate in phase II development of Noida airport HAL gets approval for indigenously developed 'black boxes'

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code