India is the second largest producer of cement in the world. The production of cement in India has increased at a compound annual growth rate (CAGR) of 9.7 per cent to reach 272 million tonnes (MT) in the period 2006–2013. It is expected to touch 407 MT by 2020.
India's potential in infrastructure is vast. It has the capacity to become the world's third largest construction market by 2025, adding 11.5 million homes a year to become a US$ 1 trillion a year market, according to a study by Global Construction Perspectives and Oxford Economics. This opens up a tremendous window of opportunity for the country’s cement industry.
Notwithstanding its current position one of the leaders in cement production, India’s riches in the sector remain somewhat untapped. “Lafarge's India business has been very successful and the country is among the top 10 markets globally for Lafarge. But going forward, we should rank higher because of the potential of the Indian market,” says Mr Martin Kriegner, CEO of the Indian branch of the world’s largest cement manufacturer, Lafarge.
The Indian cement sector is expected to witness positive growth in the coming years, with demand set to increase at a CAGR of more than 8 per cent in the period FY 2013-14 to FY 2015-16, according to the latest report titled ‘Indian Cement Industry Outlook 2016’ by market research consulting firm RNCOS. The report further observed that India’s southern region is creating the maximum demand for cement, which is expected to increase more in future.
The cement and gypsum products sector has attracted foreign direct investments (FDI) worth US$ 2,656.29 million in the period April 2000–August 2013, according to data published by the Department of Industrial Policy and Promotion (DIPP).
- Prism Cement Ltd has become the first Indian company to get the Quality Council of India's (QCI) certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The company received the certification from Institute for Certification and Quality Mark (ICQM), a leading Italian certification body authorised to oversee QCI compliance.
- UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8 million tonne per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs 3,800 crore (US$ 595.61 million).
- ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its capacity by nearly 4 MT a year in three eastern region states, over the next three years.
- Reliance Cements Co Pvt Ltd will set up a 3 MTPA grinding unit at an estimated cost of Rs 600 crore (US$ 94.04 million). The unit is likely to come up at Raghunathpur in Purulia, West Bengal.
- Reliance Cement Co, a special purpose vehicle (SPV) of Reliance Infrastructure Ltd, is commissioning its first 5 MTPA plant in Madhya Pradesh. The project has been implemented at a cost of approximately Rs 3,000 crore (US$ 470.22 million).
- Zuari Cement plans to set up a cement grinding unit at Auj (Aherwadi) and Shingadgaon villages in Solapur, Maharashtra. The new unit will have a production capacity of 1 MTPA and is expected to be operational by the second quarter of 2015.
- JSW Steel has acquired Heidelberg Cement India's 0.6 MTPA cement grinding facility in Raigad, Maharashtra, for an undisclosed amount.