Advantage India
Robust
Demand
* The cement sector saw a modest growth of 2-3% in Q1FY25, primarily due to a slowdown in construction during the Lok Sabha elections. However, ICRA projects a 7-8% growth for FY2024-25, driven by strong demand in infrastructure and housing..
* Ultratech Cement predicts an 8% rise in cement demand, driven by increased construction activities, government spending on infrastructure, and ongoing residential projects across 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 US$ 6.10 billion between April 2000-March 2024.
* National Infrastructure Pipeline (NIP) introduced projects worth US$ 14.59 billion (Rs. 102 lakh crore) for the next five years.
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.
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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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