Cement Industry Set for Record Capacity Expansion; Utilisation Seen at 70–71 pc

New Delhi, June 19: India’s cement sector is expected to witness record capacity additions in the coming period, which is likely to keep industry utilisation levels stable in the range of 70–71 per cent, according to a recent industry report.

The report highlights that while cement demand continues to remain strong, supported by sustained infrastructure development, housing growth, and government-led capital expenditure, the simultaneous addition of new production capacities is expected to balance overall utilisation levels.

Analysts noted that demand for cement remains robust, driven by ongoing construction activity across roads, railways, urban infrastructure, and housing projects. However, large-scale capacity expansions by major industry players are likely to prevent a sharp increase in utilisation rates in the near term.

Despite this, the sector’s long-term outlook remains positive, with steady demand visibility supported by India’s infrastructure-led growth trajectory. Continued investments in construction and urban development are expected to sustain consumption momentum.

Experts also believe that stable utilisation levels could help maintain pricing discipline in the market, thereby supporting profitability across key cement manufacturers. Efficient capacity planning and phased expansions are expected to ensure a balanced industry environment.

Overall, the report indicates that India’s cement industry remains well-positioned to support the country’s ongoing economic and infrastructure development while maintaining operational stability.