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Cement capacity to exceed demand by second half

With many on-going projects expected to go on stream this year, Indian cement capacity is expected to reach 207 mpta with around one-fourth being added this year. This additional capacity created coupled with slowdown in demand will bring down prices as well as capacity utilizaitons. Currently, most of the cement companies operate around 85 to 95 %. This may go down. The industry is waiting for stimulus packages from government and hopes to get business from semi-urban and rural housing. Distribution is to be strengthened for many companies as few have deeper and wider network in rural India.

 

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