The Business Standard reported that capacity utilisation for the Indian cement sector has slipped to a four year low on the slowdown in demand from construction and other sectors. Addition of new capacity has not helped the situation.
Capacity utilization dropped to 82 per cent in the Q2 ended September compared to 90 per cent in the corresponding quarter a year earlier.
According to a Motilal Oswal Securities report, 31Mt of fresh capacity was added in 2007. In the H1, capacity utilisation was 85 [er cent, whereas for the same period 2007 it had been 93 per cent. This sharp fall in utilisation comes in the backdrop of manufacturers stepping up production to 100 per cent of their rated capacity in the Q4 of 2006-07.