JK Cement chairman says consolidation will help correct oversupply issue

Yadupati Singhania, chairman of JK Cement, has stated that consolidation will help correct the supply overhang in the cement industry, according to The Economic Times.

"Consolidation in a way is good for the industry as it will take care of the excess supply," he said. "Today, there is at least 25 per cent excess supply as compared to the demand. This overhang is not good and it is the reason why you don't get the right price for your products."

New capacity
While consolidation may be good for the industry as a whole, the company is planning several new projects across India to address the regional supply-demand gap.

JK Cement has announced a 3.5Mta brownfield capacity expansion at its facility in Mangrol, and is investing approximately INR3bn (US$46.21m) for a new grinding unit in Aligarh, Uttar Pradesh. Elsewhere, the company is constructing a split grinding unit in Kheda, Gujarat, to supply Surat and Rajkot.