Trade Analytics
Browse

This is the ARCHIVED section of the website. To visit the current content of the website please CLICK here

Cement

Go Back

Cement industry in India

February, 2013

Introduction

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. Keeping in line with the technological world, the Indian cement industry has transited itself into a more advanced one. At present, the Indian cement industry is positioned second globally. This has offered advantages to the industry.

There are 139 large cement plants and over 365 mini cement plants in India, with currently 42 players in the industry.

With the ever increasing industrial activities, real estate, construction and infrastructure, in addition to the onset of various Special Economic Zones (SEZs) being developed across the country, there is a huge demand for cement. The industry is not only meeting the requirements arising within the domestic market but also fulfilling the burgeoning demands of the international arena. India is also exporting good amount of cement clinker and by products of cement.

Market Size

The cement industry of India is expected to add 30-40 million tonnes per annum (MTPA) of capacity in 2013. The industry has a current capacity of 324 MTPA and operates at 75-80 per cent utilisation.

The cement and gypsum products sector has attracted foreign direct investments (FDI) worth US$ 2,625.90 million between April 2000 to November 2012, according to the data published by the Department of Industrial Policy and Promotion (DIPP).

"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 report titled 'Indian Cement Industry Forecast to 2012', by research firm RNCOS.

Investments

  • Ambuja Cements Ltd plans to invest Rs 2,000 crore (US$ 370.37 million) to enhance its cement capacities in Rajasthan and northern region. The proposed project at Rajasthan would add five million tonne (MT) capacity to the total cement production of India. "We are adding new capacities. We are actively pursuing the five MT capacity expansion in Rajasthan and neighbouring northern regions," according to Ajay Kapur, Chief Executive Officer, Ambuja Cements
  • Dalmia Cement plans to invest Rs 1,800 crore (US$ 333.33 million) to increase the company's cement manufacturing capacity over the next two years. The company also plans to set up a 2.5 million tonne (MT) greenfield unit in Karnataka
  • Germany-based Heidelberg Cement has commissioned Phase-I of its Jhansi grinding unit. The company currently executing its Rs1,400 crore (US$ 259.36 million) expansion plan through the recent initiative has escalated the capacity of its unit to 2.7 MT. The company also aims to accelerate the operational capacity at its Damoh plant in Madhya Pradesh, which will be raised to 6 MT
  • France-based Vicat Group is likely to sell 4.5 MT of cement in India in FY 2013, said Mr Gilles du Manoir, Country-Head (India), Vicat. Apart from the newly-commissioned Rs 1,800 crore (US$ 333.33 million) joint venture (JV) cement plant, Vicat-Sagar Cement at Chattrasal, Gulbarga district of Karnataka, Vicat owns 51 per cent stake in Bharathi Cement
  • Amrit Cement India Ltd (ACIL) has announced the launch of Amrit Cement in North-Eastern market. ACIL possesses ambitious plan to achieve annual production of 5 MT by 2015-16 through capacity addition in North-East and adding fresh capacities in Nepal and Bihar for which initiative has already been taken