Cement companies are expected to add huge capacities during 2015-18. As per the Centre for Monitoring Indian Economy (CMIE) CapEx database, an incremental capacity of a huge 68.5 million tonnes per annum (mtpa) is slated for completion during 2015-18. These projects involve an investment of around Rs 27,960 crore, which will eventually scale up the outstanding capacity in the industry to 474 mtpa by March 2018. With huge infrastructure to be developed in the coming years and rising population to increase demand for housing, the long-term demand prospects for cement remains intact.
About 60 per cent of the total upcoming capacity (40.5 mtpa) is expected to get completed in the ongoing financial year. Of this, a capacity of 23.8 mtpa has already come on stream. Around 18.1 mtpa of capacity is expected to come up in 2016/17 and another 9.9 mtpa in the following year.
UltraTech Cement is likely to be the largest contributor in capacity addition. The company has already completed two projects and will commission four more by the end of March 2018. These projects together will add a capacity of 12.4 mtpa. The four upcoming plants will be based in Bihar, Maharashtra, Karnataka and Rajasthan.
The second-highest capacity (8.5 mtpa) will be added by Reliance Cement Co., which is working on two projects. One of these projects is based in Yavatmal, Maharashtra. This will bring in a capacity of five mtpa. The other project is being set up at Raghunathpur in West Bengal.
ACC is putting up a new grinding unit at Jamul, Chhattisgarh, with cement capacity of 4 mtpa and clinker capacity of 2.8 mtpa. The project is expected to be ready by January 2016. The company is expanding the capacity of its Sindri (Jharkhand) plant by 1.5 mtpa, which is scheduled to come on stream by March 2016.
Ambuja Cements would commission two projects by the end of March 2018. The expansion project of the grinding unit located at Sankrail, West Bengal, will add a capacity of 80 thousand tonnes per annum. The other project based in Mundwa, Rajasthan will be coming in two phases. It will add a capacity of 4.5 mtpa.
Some other major projects that are scheduled to come on stream by March 2018 belong to Anjani Cement, Birla Corporation, Burnpur Cement, Chettinad Cement, Dalmia Cement, JK Lakshmi Cement, JSW Cement, Jaiprakash Power Ventures, and Jaypee Cement Corporation.