Construction Industry News
According to a survey released Monday by rating agency ICRA, cement volumes are likely to grow 7-8 percent in FY23 to around 388 million tons, boosted by demand from housing, both rural and urban, and the infrastructure sector.
The big increase in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates on revised FY2022 estimates, led by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways, the report says, bodes well for cement demand.
The cement capacity expansion is likely to increase to approximately 29-32 MTPA in FY2023 from approximately 25 MTPA in FY2022, thanks to the solid demand outlook. In FY2023, the eastern region is forecast to dominate the increase, with more than 16-17 MTPA, followed by the central region, which will add about 6-7 MTPA. Despite an estimated volume increase of 7-8 percent, occupancy in the cement sector is expected to remain subdued at approximately 68 percent on an expanded basis.
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