Indian Cement Industry Analysis

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.

Robust Demand Icon

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.

Attractive Opportunities

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.

Long-Term Potential

Increasing
Investments

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

Increasing Investments
Last updated: Sep, 2022

Cement Clusters

  • Rajasthan
  • Tamil Nadu
  • Andhra Pradesh
  • Madhya Pradesh
  • Chhattisgarh
  • Odisha
Cement Clusters in India

IBEF Campaigns

MORE
India Organic Biofach 2022

India Organic Biofach 2022

Ibef Organic Indian Pavilion BIOFACH2022 July 26th-29th, 2022 | Nurember...

10th India Trend Fair 2022

10th India Trend Fair 2022

The Tenth Edition of the India Trend Fair, Tokyo, Japan is being organised ...

Case Studies

MORE

India's Infrastructure Ambitions

India's Infrastructure Ambitions

India is one of the world's fastest-growing economies, and infrastructure will play a massive role in helping the country take a huge development ...

SERVICE EXPORTS Moving Up The Value Chain

SERVICE EXPORTS Moving Up The Value Chain

India’s services industry is vast and the country has significant global standing in terms of services produced and exported. The sector contrib...

The Rise of India's Defence Exports

The Rise of India's Defence Exports

The Indian armed forces are one of the most powerful forces in the world comprising three divisions: the Indian Army, Indian Navy and Indian Air Force...

IBEF BLOG

MORE
India’s MSME Sector
7 Oct 2022

India’s MSME Sector

The Indian MSME Sector Micro, Small and Medium Enterprises (MSMEs) form th...

System for Pensions Administration – RAKSHA (SPARSH)
7 Oct 2022

System for Pensions Administration – RAKSHA (SPARSH)

Overview of System for Pensions Administration – RAKSHA (SPARSH) The...

Automobile Exports of India
30 Sep 2022

Automobile Exports of India

Introduction India is one of the world's largest automobile producers,...

Partners
Loading...