Advantage India
Robust
Demand
*In FY27, the industry’s operating profit before interest, depreciation, tax and amortisation (OPBIDTA) is projected at Rs. 820–870 (US$ 8.66-9.19) per metric tonne (MT), according to ICRA. Sustained demand from the housing and infrastructure sectors is expected to support cement volume growth, while the sector outlook remains stable.
*In FY26, India's cement production volumes reached 491.7 million metric tonnes (MT), up from 453 million metric tonnes (MT) in FY25, registering an 8.6% year-on-year (YoY) growth.
*India's cement industry, as per CRISIL Ratings, plans to increase its capacity by 150-160 MT between FY25 and FY28, building upon the 119 MT annual capacity addition over the last five years, to cater to growing infrastructure and housing demands.
*Average cement prices increased by approximately 2% year-on-year to Rs. 345 per bag in FY26. Looking ahead, ICRA expects cement volume growth to moderate to 6-7% in FY27, supported by sustained demand from the housing and infrastructure sectors, while the sector outlook remains stable.
Attractive
Opportunities
*In Union Budget 2026-27, the Government allocated a record Rs. 12.2 lakh crore (US$ 138.04 billion) towards capital expenditure to accelerate infrastructure development across roads, railways, logistics, urban infrastructure and industrial corridors, thereby creating significant demand opportunities for cement manufacturers.
*Indian Railways approved projects covering over 6,000 km of railway network with a total planned investment of Rs. 1.53 lakh crore (US$ 17.31 billion), aimed at expanding capacity, improving connectivity and enhancing freight efficiency, thereby creating significant incremental demand for cement from railway infrastructure development.
*Odisha approved cement plant investment proposals by NCL Industries and Dalmia Cement worth Rs. 2,000 crore (US$ 0.23 billion) each, which are expected to generate around 2,000 jobs.
Long-term
Potential
*Indian cement companies are among the world’s greenest cement manufacturers.
*India's major cement producers continued their aggressive expansion strategies in FY26, with companies such as UltraTech Cement, Ambuja Cements-ACC, Shree Cement, and Dalmia Bharat undertaking significant capacity additions across key regions. The expansion is expected to further consolidate the industry and strengthen the market position of large players amid robust demand from infrastructure and housing sectors.
*Indian cement makers plan to invest around Rs. 1.25 lakh crore (US$ 14.63 billion) between FY25 and FY27 to add 130 million tonnes of grinding capacity about 20% more than current levels.
*The government's infrastructure push is a significant catalyst, with projects like the Mumbai-Ahmedabad Bullet Train Corridor significantly boosting cement demand. This project alone uses around 20,000 cubic meters of cement daily, generating large-scale employment.
Increasing
Investments
*FDI inflows in the industry related to the manufacturing of cement and gypsum products reached Rs. 52,400.86 crore (US$ 8,062.12 million) between April 2000 and March 2026.
*National Infrastructure Pipeline (NIP) introduced projects worth Rs. 102 lakh crore (US$ 14.59 billion) for the next five years.
*As per the Union Budget 2026-27, the government allocated Rs. 3.09 lakh crore (US$ 34.96 billion) to the Ministry of Road Transport and Highways, reflecting an around 8% increase over the previous budget.
*According to CRISIL Ratings, India's leading cement manufacturers are expected to invest approximately Rs. 1.2 lakh crore (US$ 13,579.27 million) between FY26 and FY28, marking a nearly 50% increase compared to the previous three-year period. The investments will primarily be directed toward capacity expansion, with the industry expected to add around 150-160 MTPA of capacity by FY28 to cater to growing demand from infrastructure and housing sectors.
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 wall care putty plants.
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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.
Read MoreAMBUJA 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.
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