Cement companies on a capacity expansion spree; price rise uncertain

Bullish on a demand surge and higher market share, the country’s cement manufacturers are on a capacity expansion spree. However, with the possibility of a price rise being uncertain, analysts and dealers are not sure if 2019 will be any different.

At present, almost every cement major in the country has announced a capacity expansion plan, including Aditya Birla Group’s UltraTech Cement, ACC, Ambuja Cements, Ramco Cement and Shree Cement. “We are adding grinding capacity, which is a means to save costs. At an industry level, greenfield expansion has been planned on the premises with the hope that long-term utilisation