Indian cement leaders will expand capacity by 42.1Mta in FY24-25

UltraTech Cement announced plans to commission an additional 5.4Mta of production capacity, which will bring its overall capacity to 151Mta. This expansion is part of a wider effort to increase its production by 21.6Mta in FY24-25. ACC-Ambuja Cement, the company’s closest competitor, has also announced an addition of 11.6Mta of capacity in FY24-25. 

Kolkota-based Shree Cement Ltd announced that it has commissioned a further 3Mta of capacity. Industry analysts estimate that the company will add a total of 6Mta in this financial year. 

Dalmia Cement Ltd, the last of the four top cement producers in the country, is also expected to announce capacity expansions in FY24-25.

Analysts have suggested that the four top cement producers in India will add a collective 42.1Mta in FY24-25. This capacity expansion will equal around 10 per cent of total volumes sold in FY23-24. 

The analytics group CareEdge has estimated that the expansions will increase the companies’ market share to 54 per cent by the end of FY25-26. Ravleen Sethi, CareEdge’s associate director, states that, “The consolidation is aimed at achieving economies of scale, increasing market share, and enhancing competitiveness in the industry.”