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Buoyed by healthy growth outlook, the cement industry is expected to add 80 million tonne (MT) capacity over the next three years through fiscal 2024.

Accordingly, this will be the highest capacity addition seen in any block of three consecutive years, during the last 10 year period.

"Market share of top 10 players will increase as 70 per cent of the new capacities will be added by them," Crisil Ratings said.

"Further, lower project risks and funding of this capital expenditure through internal accruals will help keep their credit profiles strong."

Besides, the report said that after a flattish last fiscal, cement demand is set to grow strong at over 10 per cent on-year this fiscal, driven by revival in spending on infrastructure and housing segments.

"Sharper government focus on roads and railways and resumption of housing construction this fiscal will drive this growth in cement consumption."

"The medium-term demand outlook also remains robust given continued government focus on infrastructure (through building of roads, metros, and railways)."

Furthermore, in the affordable housing segment, it said that nearly 68 per cent of the 19.5 million units targeted under PMAY-R (as of this fiscal) are yet to be constructed, and cement demand should get a boost as these units get built over the over the next 2-3 fiscals.