UltraTech Cement Eyes Market Dominance with 200 MTPA Capacity by FY27

UltraTech Cement leads the market with a capacity of 156.66 MTPA and has ambitious expansion goals targeting a capacity of 200 MTPA by FY27. In 2024, UltraTech bolstered its position by purchasing India Cements Ltd, located in South India, and is currently negotiating to acquire the Cement Business of Kesoram Industries.

The Indian cement sector, presently undergoing consolidation, is set for a hopeful year in 2025. Major companies are vigorously acquiring smaller rivals, expecting a substantial increase in sales, margins, and demand. The sector anticipates approximately 8% growth in sales, fueled by a rise in government investment in major infrastructure initiatives.

With market consolidation, the cement industry is facing certain challenges. The sector encountered various difficulties in 2024, such as moderate capacity use, reduced volume expansion, and declining sales realization. Analysts predict that industry volumes increased by only 4-5% in FY25, in contrast to the prior years of double-digit growth. Elements like election interruptions, an extended monsoon period, and workforce shortages played a role in the deceleration.

In spite of these difficulties, there is a sense of hope in the atmosphere. The sector is relying on a recovery, supported by the government's emphasis on infrastructure and housing developments. This drive, along with targeted acquisitions, is anticipated to enhance price realizations and capacity usage.