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Where is the cement industry going right in India?

Date:2019-06-13 15:28 Source:未知Views:

India is the world's second largest producer of cement.

As a result, India's cement industry is naturally a major sector of the Indian economy, with more than a million people.

After deregulation in 1982, India's cement industry attracted significant investment from India and other countries.

With the lifting of the ban by the Indian government, cement EPC planning and construction starts have been breaking new figures year by year, and the cement industry is likely to benefit greatly from its huge potential in construction and overall infrastructure development.

Major government plans like its proposal to develop nearly 100 smart cities are sure to prove a huge boost to the industry.

These developments, backed by the government's foreign policy, are expected to attract investment from many foreign cement giants.

The ready availability of raw materials such as limestone and coal to produce cement has been a major driver of growth in the cement industry.

In terms of cement market demand


In India, demand is expected to increase as the government pushes ahead with large infrastructure projects, leading to the need for more cement production lines with an annual capacity of more than 45 million tons over the next three to four years.

By 2025, India's demand for cement is estimated at nearly 600 million tons a year.

The housing sector accounts for 67 per cent of India's highest demand for cement.

The rest is almost equally consumed by commercial and industrial buildings and infrastructure.

Cement companies have the responsibility to increase capacity to nearly 56m tonnes to meet growing demand.

India's cement capacity is likely to grow by 8 per cent to 395 tonnes by the end of 2016.

Capacity is expected to increase further to 421 tonnes by the end of 2017.

About 20 companies dominate India's cement industry because they produce 70 per cent of the country's cement.

Look at the current situation in India:

97% - 188 large cement plants with total installed capacity

- the rest - 365 small factories

Large plants are found mainly in rajasthan andhra pradesh and Tamil nadu.

Investment in


The country's cement industry has recently attracted significant investment as demand continues to grow due to increasing construction and infrastructure activities.

Figures released by India's department of industrial policy and promotion show that cement and gypsum products attracted $3.101 billion in foreign direct investment between April 2000 and December 2015.

India's best cement manufacturers have invested heavily, and are widely regarded as the best producers of construction cement.

- UltraTech Cement is acquiring Jaiprakash Associates for rs 165m.

- Birla Corporation Ltd acquired two cement assets of Lafarge India for rs 500 crore.

- Dalmia Cement (Bharat) Ltd expands in northeast China with investment of rs 200 crore.

- JSW group plans to expand its cement production capacity from 5 MTPA to 30 MTPA by installing a grinding plant near the steel plant.

- WB and Bihar UltraTech Greenfield grinding units.

Government action


In its 12th five-year plan, the government plans to boost capacity in the cement industry to 15bn tonnes by pouring money into infrastructure.

Similarly, the main aim of the Indian cement company, founded in 1965, was to make the country self-sufficient in cement production.

CCI has 10 units in India.

At the same time, the government is approving various investment schemes introduced by the private sector to encourage their development in the cement industry.

Here are some highlights of such government initiatives:


- a series of measures to increase investment in infrastructure in the 2016-17 budget, as the demand for cement will increase in proportion to the growth of infrastructure.

- rs 729.6 million for the urban renewal mission, including smart city development.

- Pradhan Mantri Gram Sadak Yojana's grant was increased to rs 19,000 crore in fy2017.

In addition to the central government, several states have taken major steps to boost cement production.

- Tamil nadu government launches low-cost cement.

The deal starts at rs 19, 900.

- a bulk cement treatment facility has been built at kochi port approved by the kerala government at an investment of rs 16 crore.

- andhra pradesh investment promotion council approved the proposal worth rs 92 million.

These include concessions for three cement plants and a number of other projects.

There is no contradiction between economic growth and environmental protection.

If you are thinking about long-term prosperity, they are opposites of the same coin.

- Henry paulson

To reduce energy consumption and find innovative ways to produce cement in a more efficient way, India needs to promote energy-saving measures.

A hydraulic cement company, for example, accomplishes two things.

First, produce the best construction cement to stay competitive.

Second, water conservation methods have been established even in such large-scale production.

India has long argued that newer methods are needed to reduce energy consumption.

To this end, it is working with Switzerland to provide technology and systems for more efficient cement production.

India's ability to meet the growing demand for cement in its infrastructure sector depends on the success of this step.

India's cement industry has been calling on the government to abide by its decision to avoid asphalt for all new road construction projects and instead use cement.

The reason for this is that cement is not only durable but also cheaper in the long run, and it is a low-maintenance product.

The road ahead


For India's best cement makers, the eastern states are emerging as fresher, untapped markets.

These areas could create future demand for cement.

On a larger scale, many developing countries, including the Middle East and arica, are likely to see India as an important source of imported clinker and cement in the next decade.

This will prepare India's cement industry.

Of the country's hundreds of cement factories, the dominant ones near the ports must be prepared to compete fiercely with land in the country's interior.

Cement plants in coastal visakhapatnam and gujarat ports, for example, need to be well equipped logistically.

In addition, India's cement industry is expected to attract a large number of foreign cement producers.

The main lure for foreign companies is the constant demand for cement and the excellent profit margins that come from the cement business.

Judging from the current cement market situation, domestic cement companies also seem to be preparing for a global listing through GDR or FCCB.

Although the Indian government has taken many steps to increase support for the cement market by passing more friendly laws, such as increasing infrastructure spending and lowering taxes, the sector has shown many results through its rapid growth.

That makes it still an important part of India's economic development.

While seeing its own growth, the cement industry has effectively promoted environmental sustainability due to its huge industrial scale and efforts to establish more intelligent large-scale cement production enterprises.

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