The Indian cement industry is the second largest producer in the world comprising of 185 large cement plants and 365 mini cement plants. The production of cement has increased at a compound annual growth rate (CAGR) of 9.7 per cent to reach 272 million tonnes (MT) during FY06-13. The production capacity is expected to grow to 407 MT by FY20.
The housing segment accounts for a major portion of the total domestic demand for cement in India. The Government of India (GOI) is strongly focused on infrastructure development to boost economic growth and plans to increase investment in infrastructure to US$ 1 trillion in the 12th Five Year Plan (2012-17). 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.
Major cement manufacturers in India are increasingly using alternate fuels, especially bioenergy, to fire their kilns. This is not only helping to reduce production costs of cement companies, but is also proving effective in reducing emissions.