Indian Economy News

India’s cement industry expects 7-8% growth in FY27 despite West Asia-related cost pressures

India’s cement makers are expecting FY27 to remain a healthy growth year, with leading companies projecting volume growth of 7–8% despite geopolitical uncertainty in West Asia and higher fuel costs. The demand outlook is being supported by government infrastructure spending, housing demand and urbanisation, while executives from UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Cement and Nuvoco Vistas have said they remain optimistic about medium-term growth. The article notes that companies are also focusing on premiumisation and a better trade mix to improve sales realisations, even as they face pressure from freight, packing and other input costs linked to crude oil movements and import-dependent supply chains.

The positive outlook has encouraged major cement manufacturers to continue investing in expansion and operational improvements. Ambuja Cements expects consolidated sales volumes to reach around 80 million tonnes in FY27, reflecting growth of nearly 8%, while Dalmia Bharat has planned capital expenditure of Rs. 3,200-3,400 crore (US$ 375-400 million) during the year. Nuvoco Vistas has earmarked Rs. 900 crore (US$ 94.32 million) for expansion initiatives, and UltraTech Cement has reiterated its focus on long-term capacity addition and market leadership. Industry executives acknowledged that rising fuel prices and geopolitical developments in West Asia could create short-term cost pressures; however, they expect strong domestic demand, ongoing infrastructure projects and housing construction activity to offset these challenges. The sector remains confident that continued government investment in roads, railways, urban infrastructure and real estate development will support cement consumption and enable manufacturers to sustain healthy growth momentum in FY27.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.