Indian cement sector receives new investment
11 june 2018
The Indian cement sector is receiving fresh investment as capacity utilisation rates increase, with at least six companies at various stages of announcing or implementing expansion plans, according to the Business Standard.
Dalmia Bharat has recently announced plans for 8Mta of new capacity in Odisha, eastern India, at an investment cost of INR37.2bn (US$554.7m).
“Looking at the demand for our premium products, we decided to add capacity and strengthen our leadership in east India. For the industry, utilisation rates are improving and demand had picked up December onwards. We are seeing a revival of this kind after three to four years,” said Mahendra Singhi, group chief executive officer, Dalmia Bharat.
According to commercial bank ICRA, cement production in the country is expected to continue to grow in FY19.
“Going by the prevalent trends, the growth momentum in cement production is expected to continue in financial year 2019 and the industry is likely to report growth of six per cent. In FY18, production saw growth of 6.3 per cent to 298Mt, as compared to 280Mt in FY17, with the bulk of growth during the second half,” said ICRA in a report.