Cement industry to close FY23 with 380 million tonnes of production
According to a report by CARE Advisory and Research, with healthy demand driven in the cement industry through urban housing, government’s infrastructure, and rural development thrust, the industry is expected to close FY23 with a production of about 380-390 million tonnes. The report said that cement production will witness an increase of 8-9% on a year-on-year basis, where cement production in FY22 stood at 356 million tonnes.
It has been reported that India’s cement production and consumption, both grew by 11% in FY23 during April-November on a year-over-year basis, which was driven by the government’s push for infrastructure development and increased real estate activity.
In the first half (H1) of FY23, the wholesale cement prices on average registered a year-on-year increase of 7%. CARE Ratings expects an increase of about Rs. 15-20 per 50kg bag in the fourth quarter (Q4) of FY23, which would be the strongest quarter of the season and might partially offset the inflationary pressure.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.