Cement production may go up by 20 per cent in FY22: ICRA

After a sharp contraction of 14 to 17 per cent in FY21, cement production is likely to witness a growth of 18 to 20 per cent in FY22 and reach pre-COVID levels, according to investment information agency ICRA. In the first eight months of FY21, cement production declined by 19 per cent year-on-year to 175 mn tonne. ICRA said capacity additions are expected to be in the range of 15 to 17 mn tonne per annum in FY21 as against the earlier estimates of 20 mn tonne, with companies seeking to preserve liquidity. This is likely to get back to 21 to 22 mn tonne in FY22. The eastern region is expected to lead the expansion.