Indian cement industry to add 80 mt cement capacity through FY24
Having a robust growth outlook, the cement industry is stepping up capacity additions, with 80 mt expected over the next three fiscal years, a quarter more than in the previous three fiscals 64 mt.
Given the government’s persistent focus on infrastructure, the medium-term demand outlook is also positive.
Nearly 68% of the 19.5 million affordable housing units targeted under PMAY-R have yet to be constructed (as of this fiscal year), and cement demand is anticipated to rise as these units are built over the next two to three fiscal years.
By March 31, nearly Rs 5,500 to 5,600 crore had been spent out of the total budget. Internal cash additions of at least Rs 50,000 crore are expected to be generated over the next three fiscal years to cover the shortfall.
These companies’ Capex plans are also supported by sustained cash liquidity of more than Rs 30,000 crore as of March.
Overall, as per the CRISIL, with no material increase in debt, these players’ credit profiles will remain strong.