Indian cement sector capacity to rise by 23mn tonnes 2016/16

The Indian cement industry's production capacity to grow by 25 million tonnes/year in 2014/2015 fiscal year, 23 million tonnes/year in 2015/2016, and 8 million tonnes/year in 2016/2017, according to ICRA, a national independent credit rating agency. ICRA expects cement producers in India's eastern region to raise capacity by 20 million tonnes/year from 2014/2015 to 2016/2017, compared to 13.4 and 7.9 million tonnes/year respectively in the northern and southern region. ICRA reported that cement output grew
March 3, 2015 Read time: 1 min

The Indian cement industry's production capacity to grow by 25 million tonnes/year in 2014/2015 fiscal year, 23 million tonnes/year in 2015/2016, and 8 million tonnes/year in 2016/2017, according to 8018 ICRA, a national independent credit rating agency.

ICRA expects cement producers in India's eastern region to raise capacity by 20 million tonnes/year from 2014/2015 to 2016/2017, compared to 13.4 and 7.9 million tonnes/year respectively in the northern and southern region. ICRA reported that cement output grew by 7.9% during the first nine months of 2014/2015 compared to 3.7% during the same period in 2013/2014.

Capacity utilisation in the Indian cement industry is also expected by ICRA to increase from 72% in 2013/2014 to 75% and 79% in 2015/2016 and 2016/2017 respectively if demand goes up by 8% to 8.5% over next three years. ICRA said that oversupply in the cement sector caused capacity growth to slow down from 92 million tonnes/year from 2007/2008 to 2010/2011 to 65 million tonnes/year from 2011/2012 to 2013/2014.

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