Cement industry's capacity utilisation likely to moderate: ICRA

Domestic demand growth for cement is expected to remain flat in FY2020 as against the decade-high growth of 13 per cent in the previous year. This, along with expected higher capacity additions at 20-22 mn mtpa in FY2020 and FY2021 as compared to 17 mn mtpa in FY2019, is likely to result in moderation of industry’s capacity utilisation in the current financial year, according to ICRA Ratings. This, along with expected higher capacity addition, is likely to result in moderation of the cement industry’s capacity utilisation.