Cement, Steel, Paint Companies on Expansion Overdrive

Riding on the strong demand from infrastructure, construction, and housing sectors, building material companies like cement, steel, and paints, are charting fast-faced expansion plans, especially as the pre-election year of 2023 is seeing higher fund allocation by the Government for developments in real estate and infrastructure.
Vinod Behl

Cement companies are embarking on organic and inorganic expansions to gain market share with a focus on increasing volume of sales. According to industry statistics, the cement sector has seen capacity addition of 33MT in FY23. Bloomberg data shows that large cement companies like Ultratech, ACC, Shree Cement, and Dalmia Bharat are likely to report YoY net sales growth of 17.1%, 9.6%, 20.5% and 21.4%. As per industry analysts, volume growth is expected to be highest for Shree Cement at 23% and Dalmia Bharat at 15%, and Ultratech at 9-10% in Q3.