Cement industry in India

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

*India's cement demand is expected to sustain its growth momentum with a projected increase of 7-8% in FY26. This robust growth is driven primarily by government housing initiatives like the Pradhan Mantri Awas Yojana (PMAY) and ongoing infrastructure development projects. Supported by a revival in construction activity and increased government capital expenditure, the real estate sector's expansion will continue to fuel strong cement demand.

*In FY25, India’s cement production rose to about 453 million tonnes, up from 426.29 million tonnes in FY24, registering a 6.3% 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.

*The GST revamp announced in September 2025 is expected to reduce cement prices by Rs. 30-35 (US$ 0.34-0.40) per 50-kg bag, lowering construction costs and potentially stimulating demand further in the sector.

Attractive
Opportunities

*As of August 2025, 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.

*Government has plans for 33.4% outlays for capital investments to Rs. 10 lakh crore (US$ 120 billion) and outlays for railways of Rs. 2.4 lakh crore (US$ 29.05 billion). Also, plans to build 100 new significant transport projects involving an investment of Rs. 75,000 crore (US$ 9.04 billion) for end-to-end connectivity for ports, coal, steel etc.

*Karnataka approved investment proposals worth Rs. 17,183 crore (US$ 2.01 billion) in cement manufacturing, which are expected to generate around 12,500 jobs.

Long-term
Potential

*Indian cement companies are among 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.

*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. 51,135 crore (US$ 7.92 billion) between April 2000-June 2025.

*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 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.

*Shree Cement announces Rs 7,000 crore (US$ 844 million) investment for 12 million tonnes capacity expansion in India.

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Last updated: Oct, 2025

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.

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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.

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