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Cement Industry in India

November, 2012


Cement is one of the core industries which plays a vital role in the growth and development of a nation. The industry occupies an important place in the Indian economy. India ranks as the second largest producer of quality cement in the world.

There are 139 large cement plants and over 365 mini cement plants in India. The country has a total of 40 players in the industry currently.

The demand for cement, being a derived one, depends mainly on the industrial activities, real estate business, construction activities and investment in the infrastructure sector. With the ever-increasing requirement for infrastructure, in addition to the onset of various Special Economic Zones (SEZs) being developed across the country, there is a huge demand for cement. India's 330 million tonne (MT) cement industry grew by 6.4 per cent in FY12, on back of robust demand revival in the second half of the year. The industry sold 223.02 MT of the building material, compared with 209.5 MT in FY11.

"India's cement market is expected to see demand growth rate double and pricing power improve in FY13-14," as per a research report by Anand Rathi.

Market Size

The cement and gypsum products sector has attracted foreign direct investments (FDI) worth US$ 2,618.30 million between April 2000 to August 2012, according to the data published by the Department of Industrial Policy and Promotion (DIPP).

The demand for cement is expected to grow at 10 per cent over 2011, as per ACC Ltd's annual report. India's total installed capacity of cement stood at 320 million tonnes per annum (MTPA).

The cement industry plans to add new capacity of about 71 MT in the next two financial years. At present, it has an installed capacity of over 315 MT to cater to the demand of about 230 MT.

"It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country's cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 MMT," according to a RNCOS report titled 'Indian Cement Industry Forecast to 2012'.


  • Cement Corporation of India (CCI) plans to set up a cement grinding unit with an installed capacity of 82,500 tonnes per annum, on a single shift basis at a cost of Rs 39.68 crore (US$ 7.18 million) in district of Cachar, Assam
  • German cement major Heidelberg and domestic firms including Ultratech and Reliance Cements have evinced interest to be the joint venture (JV) partner in the state-run Rashtriya Ispat Nigam's proposed Rs 1,000 crore (US$ 180.31 million) 3 MTPA cement plant at Vizag
  • Reliance Cement Company Pvt Ltd (RCC), a subsidiary of Reliance Infrastructure Ltd, has commenced production of cement from its first manufacturing unit at Butibori, Nagpur in Maharashtra. RCC is building two cement plants with a total capacity of 10 MT in Madhya Pradesh and Maharashtra with associated grinding plants
  • India Cements has started the paper work on a brownfield expansion to add over three MT at two of its cement plants in Tamil Nadu
  • Kolkata-based real estate company Roofers Group will commission a 200 tonnes-a-day cement plant this week at Lodhasuli in the Midnapore district of the State
  • Total operational capacity of the North-East region's cement units is likely to exceed 7 MT in 2013-14 from 6 MT now. The projected compound annual cement demand growth rate for the region is around 20 per cent for the next few years
  • Ambuja Cements' integrated plant unit at Chandrapur, in Maharashtra, the Maratha Cement Works (MCW) has bagged the gold award for the best safety systems at the Safety Excellence System Awards