25 November 2024
Why will the growth of cement sector moderate in FY25?
The cement sector in India is expected to experience moderate growth in FY25 due to several factors. Demand is projected to slow, with growth rates estimated at 5-6.5%, compared to the stronger 8-9% growth in FY24. This moderation is attributed to general elections affecting infrastructure projects and increased supply from new production capacities, leading to lower capacity utilization levels across the industry.
Fuel costs are anticipated to decline, providing some relief to manufacturers. However, competition among companies and stable pricing trends may limit profitability. Despite this, private housing and infrastructure demand remain critical drivers for long-term growth, supported by ongoing infrastructure and real estate investments.