The Indian cement industry is expected to invest ?1.25 trillion in capital expenditure by FY27, as forecast by CRISIL. This substantial investment underscores the sector’s robust growth prospects and expected increase in demand.
The planned capex is driven by several factors including increasing infrastructure projects, urbanization and demand for housing. Cement companies are gearing up to enhance their production capacity and operational efficiency to meet the growing demands of the construction and real estate sector.
The investment will be channeled towards expanding existing factories, setting up new production facilities and upgrading technology to improve sustainability and reduce environmental impact. This strategic spending is intended to strengthen the sector’s ability to meet rising demand and navigate market challenges.
The CRISIL report shows that the sector’s financial health and long-term growth potential remain strong. These investments are expected to increase production capacity and contribute to India’s overall infrastructure development.