Now Reading: Cement makers forecast 7-8% growth despite West Asia crisis
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Cement makers forecast 7-8% growth despite West Asia crisis
Millenniumpost.in reports that leading cement makers expect the industry to grow 7-8% in FY27, driven by government infrastructure spending, housing demand, and urbanisation. Executives from UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia…
The Story in Brief
Millenniumpost.in reports that leading cement makers expect the industry to grow 7-8% in FY27, driven by government infrastructure spending, housing demand, and urbanisation. Executives from UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Bharat, and Nuvoco Vistas cited premiumisation and improved trade mix as key earnings drivers. However, headwinds from rising fuel and freight costs linked to the West Asia crisis are pressuring margins. UltraTech CFO Atul Daga noted that power, fuel, and selling expenses account for 50-55% of operating costs. Ambuja Cements CEO Vinod Bahety projected more moderate industry growth of 5-5.5%, citing inflation and a possible weak monsoon. Companies are ramping up capital expenditure, with UltraTech planning Rs 8,000-10,000 crore annually and Dalmia Bharat Rs 3,200-3,400 crore for FY27.
The Indian Opinion
Industry leaders are painting a bullish picture, but the narrative of seamless 7-8% growth overlooks real headwinds. Fuel and freight costs are already eating into margins, and a weak monsoon could stall rural demand. The claim that premiumisation will offset these pressures is a leap of faith. The real test will be the first quarter volume numbers, if they slip below 5%, the optimism will need serious recalibration.
Source: millenniumpost.in
This story was synthesised by AI from the source linked above.
