Trade Analytics
In FY16, demand growth rate at 9.8 per cent is expected to outpace supply growth at 6.7 per cent, improving realisations.

Indian Cement Industry Analysis

Latest update: February, 2018

  • Industry to grow at 5-6 per cent CAGR between FY17 – FY20.
  • Capacity addition of 109 million tonnes per annum (mtpa) between 2013-16.
  • Total installed capacity of 420 million tonnes as of June 2017.
  • Domestic consumption to outpace supply in next three fiscals.

Notes: CAGR - Compound Annual Growth Rate, FY - Indian Financial Year (April to March)
Source: DIPP data, Crisil

  • Second largest cement market
  • With cement production capacity of nearly 420 million tonnes, as of July 2017.
  • India's cement production capacity is expected to reach 550 million tonnes by 2025.
  • India is the second largest cement producer in the world.


Source: Business Standard, Ministry of External Affairs, Ministry of External Affairs (Investment and Technology Promotion Division)



Last Updated: February, 2018

With nearly 425 million tonnes (MT) of cement production capacity, India is the second largest cement producer in the world and accounts for 6.9 per cent of world’s cement output. The cement production capacity is estimated to touch 550 MT by FY 20. Of the total capacity, 98 per cent lies with the private sector and the rest with the public sector. The top 20 companies account for around 70 per cent of the total production.

A total of 210 large cement plants together account for 350 million tonnes of installed capacity in the country, while 365 small plants make up the rest. Of the total 188 large cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. Cement production in India increased from 230 million tonnes in FY 12 to 280 million tonnes in FY17. In FY18, up to December, cement production stood at 216.527 million tonnes. Cement, Clinker and Asbestos Cement exports and imports stood at US$ 304.23 million and 119.97 million during April-December 2017, respectively.

Dalmia Cement Ltd has become the first cement company in India to commit itself to 100 per cent renewable power. The company plans to increase its capacity from existing 2.4 MT to 15-20 MT by 2021 by investing US$ 1.27 billion.

The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. It plans to increase investment in infrastructure to US$ 1 trillion in the 12th Five Year Plan (2012–17). The government also intends to expand the capacity of the railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation costs. These measures would lead to increased construction activity thereby boosting cement demand.

Sectoral Presentation (February, 2018)

Download PDF   Download  (Size: 884.78 KB )

Cement India

Cement Clusters
Cement Clusters in India


Brand India Pharma


+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine

Rural India


+ More Publications >

IBEF Publication


author_Siddartha-Sacheti-Jaipur-Gems-CEO.jpg "Indian jewellers, especially those with heritage, have massive potential as brands themselves"
Mr Siddhartha Sacheti, CEO - Jaipur Gems

Jaipur Gems is one of India's largest producers and exporters of gems and jewellery. It has an international presence via retail stores, and has won multiple internat...

author_logo-ibef1.jpg Mid-term review of foreign trade policy: An update
IBEF, Knowledge Centre

The Indian Government announced the mid-term review of Foreign Trade Policy 2015-20 on December 5, 2017. Overall, the policy is expected to make Indian exports more compe...

author_Satish-Kannan1.jpg Internet Proliferation is Making Access to Healthcare Easier
Satish Kannan, Co-founder and CEO, DocsApp

In today's age, it's sometimes easy to forget that the internet is not just for networking and entertainment. It has a purpose and a vast reach; when used correct...

author_logo-ibef1.jpg Auto Expo 2018
IBEF, Knowledge Centre

Held at two separate venues in 2018, the Auto Expo is India’s largest auto gathering. The Auto Expo 2018–Vehicles is scheduled to be held at India Expo Mart, ...

author_Amit_Wadhwani1.jpg 2018 to witness a green revolution in realty and infrastructure
Mr Amit Wadhwani, Director, Sai Estate Consultants

As the Indian real estate and infrastructure sectors look towards a greener future, the investment opportunities are promising and plentiful.In recent years, India has em...

author_logo-ibef1.jpg The Journey From Fragile Five to Favored Investment Destination
IBEF, Knowledge Centre

From being labeled the ‘Fragile Five’(a term coined Morgan Stanley to represent emerging market economies)in 2013 to become one of the most favored investment...

ideas More


Clean N' Green
Who thought banning plastic bags by the municipal corporation of Mangalore could spark the thought of creating eco-friendly products. Well, Mr Aswath Hegde, founder, EnviGreen Biotech Private Limited did. With a passion to preserve the environment and perseverance to achieve it, he and his friends created a 100 per cent..


Join now. Enjoy FREE subscriptions downloads, updates and more.


Already a member?
Login / Retrieve Password