India's capacity utilisation falls in the 2Q

The capacity utilisation of India’s top 10 cement producers fell to 52 per cent in the quarter ending 30 June, compared to 76 per cent in the year-ago period, according to The Hindu BusinessLine. The decline has been attributed to weak demand and logistics restrictions amid the COVID-19 pandemic.

The lower capacity utilisation reportedly increased operational costs despite a dip in fuel and raw material costs. With the onset of the monsoon season and housing projects facing labour issues, demand is expected to remain subdued in the September quarter.