14 September 2018 Dalmia Bharat The Indian cement industry witnessed supply growing at a CAGR of 11% over FY07-17. However, the pace of capacity addition has declined over the years. Also, around this time, green-field capital costs were constantly increasing due to higher underlying prices of land. Green-field capital costs increased from USD100/t in 2012 to USD120/t in 2017 due to higher land prices and also due to a rise in overall lead time for the construction of projects. Cement prices over the last 17 years increased at a 5% CAGR and have shown negative growth only for three years, during FY07-17. Prices witnessed maximum growth in FY06-07 on account of consolidation in the industry when Ultratech acquired L&T; Cement and Holcim acquired ACC/Ambuja. Increase in prices of land Availability of credit turning more stringent The last few limestone bidsby Emami Cement, Dalmia Cement and Ambuja Cementpoint to a sharp increase in the cost of acquisition of limestone.