The Indian cement industry is gearing up for a turnaround in 2025, eyeing an 8% sales growth backed by government-led infrastructure projects. Giants like UltraTech Cement and Adani Cement are leading the charge, adding 50 million tonnes per annum (MTPA) of capacity through $4.5 billion investments.
In 2024, challenges like low utilization rates, weaker price realizations, and prolonged monsoons hit the sector hard, shrinking revenues and profit margins. Yet, key acquisitions reshaped the landscape. Adani Cement, in just two years, surpassed 100 MTPA capacity with strategic buys like Sanghi Industries and Holcim’s 70 MTPA assets. Its goal: 140 MTPA by FY28. UltraTech aims for 200 MTPA by FY27, acquiring India Cements to stay ahead.
Experts predict better capacity utilization and pricing in FY25, fueled by rural and urban housing demand. However, utilization rates are likely to hover around 70%, even with significant expansions. Industry leaders remain optimistic about a strong recovery, driven by infrastructure spending and innovation, despite lingering challenges.