Cement industry in India

India is the second largest cement producer worldwide with over 7% of the global installed capacity.

Advantage India


* As per ICRA, in FY22, the cement production in India is expected to increase by ~12% YoY, driven by rural housing demand and government’s strong focus on infrastructure development.

* As per Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest since the last 10 years, driven by increasing spending on housing and infrastructure activities.

Robust Demand Icon


* In October 2021, Prime Minister, Mr. Narendra Modi, launched the ‘PM Gati Shakti - National Master Plan (NMP)’ for multimodal connectivity. Gati Shakti will bring synergy to create a world-class, seamless multimodal transport network in India. This will boost the demand for cement in the future.

Attractive Opportunities


*Oligopoly market, where large players have partial pricing control.

*Low threat from substitutes.

*Indian cement companies are amongst the world greenest cement manufacturers.

*With high allocation under the Union Budget 2022-23 for infrastructure, affordable housing schemes and road projects to fuel the economy, the domestic cement industry is poised for a volume surge.

Long-Term Potential


*FDI inflows in the industry, related the to manufacturing of cement and gypsum products, reached US$ 5.48 billion between April 2000-March 2022.

*In 2021, as remote work is being adopted at a fast pace amid the pandemic, the demand for affordable houses, with a ticket size of <Rs. 40-50 lakh (US$ 53,694- 67,118), is expected to rise in Tier 2 and 3 cities, leading to an increase in demand for cement.

Increasing Investments
Last updated: Oct, 2022

Cement Clusters

  • Rajasthan
  • Tamil Nadu
  • Andhra Pradesh
  • Madhya Pradesh
  • Chhattisgarh
  • Odisha
Cement Clusters in India

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