India's Cement Capacity To Rise 33% By 2028-29 On Demand And Consolidation

India's cement production capacity is set to expand by a third over the next five years, with leading players like UltraTech Cement and Ambuja Cements expected to drive the growth, Moody’s Ratings said. Together, large cement producers will add around 200 million tonnes of capacity, with the top two accounting for 30% of this.

Shree Cement and Dalmia Bharatwill contribute about 25%, while smaller companies such as JK Cement, JSW Cement and JK Lakshmi Cement are set to double their capacity and comprise 35% of the expansion.

Cement demand in India is projected to grow at a 6–7% CAGR and reach 670 million tonnes per annum by 2030, from 445 million tonnes in 2023-24, supported by housing and infrastructure spending. At 260 kg, India’s per capita consumption is still less than half the global average, indicating significant growth potential.

Large players are expected to continue acquiring smaller regional companies to optimise capacity and profitability. Despite $14 billion in capex projected over three years, the sector's financial health is expected to remain robust, with most top producers funding expansion through internal accruals.

Moody’s also noted that while companies are adopting efficiency measures like blended cement and alternative fuels, India's cement sector will see a rise in carbon emissions as output scales up. The sector currently accounts for around 7% of India’s total CO₂ emissions.