India's cement sector plans to add 160-170 million tonnes of grinding capacity by FY28, investing Rs 1.2 lakh crore. This expansion is driven by strong demand and high capacity utilization.

According to a report by Crisil, the Indian cement industry is planning to add between 160 and 170 million tonnes of grinding capacity from fiscal year 2026 to 2028. This expansion will require an investment of around Rs 1.2 lakh crore, which is about 50% higher than the previous three fiscal years. The growth is attributed to a strong demand outlook and high capacity utilization, which reached 70% last fiscal year. Most of the new capacity will come from brownfield projects, allowing for quicker implementation and lower costs. Additionally, a portion of the capital expenditure will be allocated to green energy and efficiency improvements, supporting overall profitability.