Growth of Cement Industry in India - Infographic

Indian cement demand is projected to grow by 6-7% in FY25, following a strong 7-8% YoY growth in the last quarter of FY24

Advantage India

Robust
Demand

* The Indian cement industry projects an 8% increase in sales by CY25, fueled by government infrastructure investments, although it faces challenges such as reduced sales realization in CY24.

* UltraTech Cement projects a 7-8% growth in cement demand for FY25, driven by increased construction activities, leading to a rise in industry capacity utilization to 72% and the addition of 35-40 million tonnes of capacity, primarily in eastern and southern India.

Attractive
Opportunities

* The Mumbai-Ahmedabad Bullet Train Corridor is significantly boosting the cement and construction industry, utilizing around 20,000 cubic meters of cement daily—equivalent to eight 10-story buildings. This project, spanning 508 km with multiple stations and tunnels, has generated substantial employment, with about 20,000 workers engaged daily.

Long-term
Potential

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

* Low threat from substitutes.

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

*India's top four cement companies—UltraTech, ACC-Ambuja, Shree Cement, and Dalmia Cement—are set to add over 42 million tonnes of capacity in FY25, increasing their market share from 48% in FY23 to an expected 54% by FY26.

Increasing
Investments

*FDI inflows in the industry, related to the manufacturing of cement and gypsum products, reached Rs. 51,074 crore (US$ 7.91 billion) between April 2000-September 2024.

* As per the Union Budget 2025-26, the government approved an outlay of Rs. 2,87,333 crore (US$ 33.08 billion) for the Ministry of Road Transport and Highways i.e., 3% higher as compared to the previous budget.