Cement Sector Set for Expansion on Infrastructure Boost
India’s cement industry is poised for substantial growth, driven by the Union Budget’s increased focus on infrastructure and housing development. Cement manufacturers are optimistic that the heightened allocation for rural and urban development, along with strategic investments, will create new avenues for growth, innovation, and capacity expansion.
The Cement Manufacturers’ Association (CMA) has welcomed the government’s budgetary measures, noting that the emphasis on large-scale infrastructure projects will significantly boost the demand for construction materials, particularly cement. The budget includes substantial allocations for housing, urban development, and infrastructure, which cement producers believe will create long-term growth opportunities for the sector. CMA President Neeraj Akhoury, who is also the Managing Director of Shree Cement, highlighted the strong correlation between increased government spending and demand for construction materials. He expressed confidence that these measures would enable cement manufacturers to achieve a compound annual growth rate (CAGR) of over 6 percent in installed cement capacity for the financial year.
The budget also includes a Rs 20,000 crore allocation to foster innovation and Rs 1.5 lakh crore in 50-year interest-free loans for state capital expenditure on infrastructure projects. According to CMA Vice President Parth Jindal, these provisions will further accelerate growth in the cement sector, which is already benefiting from heightened demand driven by infrastructure investment. Jindal, who also serves as the Managing Director of JSW Cement, believes that the budget’s forward-looking approach will fuel advancements in green cement technology, driving both sustainability and innovation within the industry.
Arun Shukla, President and Director of JK Lakshmi Cement, pointed to the positive impact of the government’s focus on affordable housing and infrastructure development. With the completion of 50,000 dwelling units in stressed housing projects and the Rs 1.5 lakh crore infrastructure allocation, Shukla foresees significant benefits for middle-class families and further urbanization. Additionally, Shukla expressed optimism about the Rs 10 lakh crore asset monetisation plan, launched in the budget, which will inject capital into new projects and further stimulate demand for cement. The government’s emphasis on public-private partnership (PPP) models for infrastructure expansion and streamlining trade and warehousing facilities is also expected to create a supportive environment for sustained growth. As the cement sector gears up to leverage these opportunities, manufacturers remain focused on strengthening their capacity to meet the rising demand, driven by a favourable policy landscape.
