Despite surge in demand, cement price growth to remain muted in FY19

In the coming fiscal year, capacity addition of around 5-7 mt is expected in the eastern and western region

Despite a surge in demand, the growth rate in cement prices is expected to stagnate at around 3-4 per cent for the ongoing fiscal year owing to an oversupply situation.

Although market consolidation, especially in north India, is under full swing with UltraTech Cement, the largest cement firm in the country, beginning a slew of acquisitions starting with Jaypee in 2017 and then Century Textiles & Industries and Binani Cement this year, total installed capacity in this region is poised to increase on account of brownfield projects undertaken by companies like Shree Cement and others.

In the already saturated southern