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CARE Advisory Research and Training (CareEdge Research) in its report has said with healthy demand drivers for cement - urban housing, government's infrastructure and rural development thrust, the industry is expected to close FY23 with a production of 380-390 million ton. It mentioned, in FY22, production of cement was at 356 million tonnes, up 20 per cent yoy as compared with 296 million tonnes in FY21 due to the low base effect.

According to the report, India's cement production and consumption both grew by 11 per cent in FY23 (April-November) on a yoy basis, driven by the government's push for infrastructure development and increased real estate activity.

Care Advisory’s Director -- Tanvi Shah said the cement industry is expected to see a continued uptrend in volume growth in the near term. In FY23, the volume growth is expected to be around 8-9 per cent owing to renewed demand in the housing and infrastructure segment coupled with the government's continued focus on infrastructure development in light of Central elections in 2024. Despite the uptrend in consumption, the profitability of the cement players is expected to decline by 400-500bps in FY23 due to elevated power and fuel cost.