Cement firms hike prices even as expansion plans come to a grinding halt

Capacity expansion for cement companies has come to a grinding halt. This has not prevented companies from hiking prices — a trend likely to continue in 2020-21 (FY21).

Two of the top three cement producers — UltraTech Cement and Shree Cement — have so far indicated they will go slow on certain expansions.

JK Lakshmi Cement and Birla Corporation have placed some planned expansions on hold.

LafargeHolcim Group’s ACC and Ambuja Cements are yet to officially announce any deferment. However, analysts expect some projects to be put on hold.

For almost a decade now, the Indian cement industry has been