India's Cement Industry Poised for Growth
The Indian cement industry is expected to witness a surge in demand, driven by increased construction activities across the country. This demand is projected to grow by 7-8% in the current financial year, leading to a rise in capacity utilization to 72% in FY25.
To meet this growing demand, the industry is expected to add 35-40 million tonnes of new production capacity in the next fiscal year. This expansion will be concentrated in the eastern and southern regions, accounting for 60-65% of the new capacity.
Infrastructure and Housing Sectors Driving Demand
The growth in demand is attributed to the increased focus on infrastructure development and the housing sector. The government's initiatives, such as the PM Gati Shakti program, have prioritized infrastructure spending and streamlined project implementation. Additionally, the government's focus on effective cash management has ensured timely resource allocation.
UltraTech Cement Leading the Way
UltraTech Cement, India's leading cement manufacturer, is well-positioned to capitalize on this growth opportunity. The company is aggressively expanding its capacity and has recently acquired a majority stake in South-based India Cements Ltd. This acquisition, along with its existing footprint, will enable UltraTech to service the growing demand across the country.
A Remarkable Growth Story
UltraTech's growth trajectory mirrors India's growth story. The company's journey from its first cement unit in the early 1980s to becoming the world's third-largest cement company outside of China is a testament to its ambitious vision and execution capabilities.
With the Indian infrastructure sector poised for remarkable growth, UltraTech Cement is well-positioned to continue its growth trajectory and contribute to the nation's development.