Page 64 - CV June-July 2023 Issue
P. 64

However, the large expansion plans will keep capacity utilisation
        below 70 per cent, up from 65 per cent in FY23. It expects 75 per
        cent of the announced expansion of around 150 million tonnes is
        actually likely to come on stream during FY23-25. But since most
        of the capacity addition is coming in grinding units, clinker
        utilisation is likely to remain 800-1,000 basis points higher than
        cement utilisation, indicating a higher effective utilisation rate.

        The report also sees the industry undergoing more consolidation,
        especially in the south in the near-to-medium term, given the
        widening gap between leading and small players amid a tough
        environment and aggressive medium-term capacity targets of
        large players.

        The shares of top 10 companies also increased to 71 per cent in
        FY23 from 69 per cent in FY20 and they are likely to increase
        further in the next couple of years.
        Given the high fragmentation and a large number of small-to-mid
        sized players, the southern market offers a high potential for
        inorganic expansion followed by the western region.
























         CONSTRUCTION VISION                                                                                62                                                                                          JUNE-JULY 2023
   59   60   61   62   63   64   65   66   67   68   69