12% rise in cement demand likely in FY24

The massive infra spending by the central government towards building roads, railway lines and power, among others, will boost cement demand by 10-12 per cent this fiscal, according to a report. The Centre has increased its budget allocation for infrastructure - such as roads, railway lines/stations, power, including renewables, urban infra, telecom, ports, airports, and water works, among others - by Rs 1.6 lakh crore to Rs 5.9 lakh crore for fiscal 2024 from a revised estimate of Rs 4.3 lakh crore for fiscal 2023. Continuing the robust ride of the past two fiscals, cement demand is likely to grow 10-12 per cent year-on-year to 440 million tonne in fiscal 2024, driven by strong offtake from the infrastructure segment, Crisil Ratings said in a note Friday.