The Indian cement industry is the second largest producer in the world comprising 183 large cement plants and 365 mini cement plants.
The production of cement has increased at a compound annual growth rate (CAGR) of 10 per cent over FY07-11. The market size of the industry is expected to grow from 223.4 million tonnes per annum (MTPA) during FY12 to 550 MTPA by FY20.
The Housing segment accounts for a major portion of the total domestic demand for cement in India. Between 2010 and 2014, demand for housing units is estimated to be 4.3 million, leading to a higher demand for cement for homebuilding. The Government of India is strongly focused on infrastructure development to boost economic growth. Infrastructure projects such as dedicated freight corridors as well as new and upgraded airports and ports are expected to further drive the industry. The Government also plans to expand the capacity of the railways to ease the transportation of cement.
The Government has approved a package of fiscal incentives and other concessions for the North East Region, namely the North East Industrial and Investment Policy, 2007, effective from 1 April, 2007. The major policy and fiscal initiatives are expected to catalyse infrastructure and industrial development in the region, spurring the demand for cement.