World · India Bureau
India's cement sector faces supply glut concerns through 2027-28
Rapid capacity expansions in India's cement industry are expected to significantly outpace demand growth over the next two fiscal years, raising concerns about plant utilisation rates and potential price pressures across regional markets.
LSN India ·
India's cement manufacturers are adding substantial production capacity that is projected to exceed demand growth during fiscal years 2026-27 and 2027-28, creating a potential supply-demand imbalance that could test the sector's profitability.
The anticipated capacity additions are expected to strain plant utilisation rates as the incremental production outpaces the pace of demand expansion. This divergence between supply and demand growth raises concerns about competitive pressures and pricing dynamics across different regional markets where cement consumption patterns vary.
The sector faces a challenging near-term outlook as manufacturers grapple with the prospect of excess capacity coming online. Regional variations in demand growth mean that while some markets may absorb additional supply more readily, others could experience more pronounced pricing pressure as producers compete for market share.
Industry participants are monitoring these capacity additions closely as they navigate the balance between expanding to capture future growth and managing near-term operational efficiency. The outlook underscores the cyclical nature of India's cement sector, where expansion phases can create temporary supply-demand mismatches that require careful management by producers.