Cement capacity addition slows down on tapering demand, supply glut

Current capacity utilisation stands at 64%, down from 73% in 2012

Owing to the slowdown in demand and the supply glut faced by the cement industry in recent times, the capacity addition in the sector is expected to slow down to 16 million tonne (mt) in the current fiscal year (FY) which will reduce further to 13 mt in the next FY. However, an estimated investment of Rs 7,000-8,000 crore will be made in this sector over the next two years. The slowdown follows fall in utilisation of existing capacities.

In the last financial year, the sector had added 24 mt capacity compared with 27 mt in 2014-15. The sector had