Expansion to Excess

The cement industry has undergone several expansion cycles, typically in anticipation of future demand, which is mostly domestic. The industry saw capacity expansions in FY96–FY98, FY04–FY07, and FY16–FY20, followed by capacity outpacing demand. Since FY21, the trend is mostly downward as new plants came online while demand remained mostly subdued. In FY26, demand is returning. At the same time, consolidation among leading producers is reshaping the industry, concentrating capacity at the top even as overall utilization recovers only gradually.