Cement demand is expected to grow by 7-8 percent to around 382 million tonnes in the current fiscal, helped by tailwinds of strong demand from rural housing and infrastructure sectors, a report by ICRA said on April 20. It also mentioned about "likely contraction in operating margins by 270-320 bps to 16.8-17.3 percent" for the industry on account of high input costs and inflationary pressure.

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Cement production in the first 11 months of FY22 was at 323 million tonnes, which is higher by 22 percent Y-o-Y. The demand, which was adversely impacted in November 2021 by cyclones and unseasonal rains, picked up from December 2021. ICRA estimates "the production to grow by around 18-20 percent and surpass pre-COVID levels to reach around 355 million MT

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The recent budgetary allocation of over Rs 9.2 lakh crore towards agriculture, affordable housing and capital expenditure is expected to augur well for cement demand, ICRA AVP, Sector Head Anupama Reddy said. "The cement demand is expected to grow by 7-8 percent to around 382 million MT

According to the data from the Cement Manufacturers Association (CMA), India has an installed capacity of approximately 545 million tonnes.

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