Cement
In FY16, demand growth rate at 9.8 per cent is expected to outpace supply growth at 6.7 per cent, improving realisations.

Indian Cement Industry Analysis

Latest update: January, 2016

Growth

Cement production in India growing at a fast pace

  • Cement production increased at a CAGR of 6.7 per cent to 270.32 million tonnes over FY07–15.
  • As per the 12th Five Year Plan, production is expected to reach 407 million tonnes by FY17.
  • Availability of fly-ash (from thermal power plants) and use of advance technology has increased production of blended cement.Availability of fly-ash (from thermal power plants) and use of advance technology has increased production of blended cement.
  • The environment-friendly blended cement is more cost-efficient to produce, as it requires lesser input of clinker and energy.
Growth

 

Last Updated: January, 2016

With nearly 390 million tonnes (MT) of cement production capacity, India is the second largest cement producer in the world and accounts for 6.7 per cent of world’s cement output. The cement production capacity is estimated to touch 550 MT by FY 20. Of the total capacity, 98 per cent lies with the private sector and the rest with the public sector. The top 20 companies account for around 70 per cent of the total production.

A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, while 365 small plants make up the rest. Of the total 188 large cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. India’s cement production increased at a compound annual growth rate (CAGR) of 6.7 per cent to 270.32 million tonnes over FY07–15. As per the 12th Five Year Plan, production is expected to reach 407 million tonnes by FY17.

The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. It plans to increase investment in infrastructure to US$ 1 trillion in the 12th Five Year Plan (2012–17). The government also intends to expand the capacity of the railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation costs. These measures would lead to increased construction activity thereby boosting cement demand.

Sectoral Presentation (January, 2016)

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