Cement industry in India

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

Advantage India

Robust
Demand

* 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.

Attractive
Opportunities

* 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.

Long-term
Potential

* 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.

Increasing
Investments

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

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Last updated: Dec, 2022

UltraTech Cement

UltraTech Cement Ltd. is the largest manufacturer of grey cement, RMC, and white cement in India. It is also one of the leading cement producers globally. UltraTech as a brand embodies 'strength', 'reliability' and 'innovation'. Together, these attributes inspire engineers to stretch the limits of their imagination to create homes, buildings and structures that define the new India. Its operations span across India, UAE, Bahrain, Bangladesh, and Sri Lanka. It is also India's largest exporter of cement, reaching out to meet the demand in countries around the Indian Ocean and the Middle East. In the white cement segment, UltraTech goes to market under the brand name of Birla White. It has a white cement plant with a capacity of 0.68 MTPA and 2 wallcare putty plants.

Company Website: https://www.ultratechcement.com/

Shree Cement

Shree Cement Limited’s principal products/services are cement and clinker. The company's manufacturing operations are spread over North and East India with presence across approximately six states. It has a cement production capacity of 43.4 MTPA. The company has operations in Rajasthan, Uttarakhand, Bihar, Haryana, Chhattisgarh, and Uttar Pradesh. The company's brands include Shree JungRodhak, Bangur and Rockstrong. The company also operates a separate trading division catering to third party buyers and sellers. It produces synthetic gypsum to replace use of natural gypsum in cement manufacturing. Shree Global Pte. Ltd. is the subsidiary of the company. The company plans to increase its capacity at 12% compound annual growth rate (CAGR) to 80 million tonnes by FY26.

Company Website: https://www.shreecement.com/

AMBUJA CEMENT

Ambuja Cements Limited is an India-based holding company engaged in the manufacturing of clinkers and cement. The company operates through cement and cement related products. The company has a range of products for B2B and retail markets. The company's product, Ambuja Plus Roof Special, is suited for constructing roofs and slabs. The company also co-owns two brands in micro materials category – Alccofine, which includes a range of micro slag materials, and Dirk Pozzocrete, which includes superfine fly ash. Alccofine micro materials are used in construction projects, such as metro rail, dams, roads, flyovers, bridges, and tunnels.

Company Website: http://www.ambujacement.com/