Where Is the Cement Industry in India Heading Exactly?



India takes the second place in the world after the production of the cement. Cement industry in India, then, of course, the most important aspect of the Indian economy, in more than a Million people are employed. The Indian cement industry has attracted great investments in India, as well as from other countries, to 1982, when it was canceled.

In the cement industry is likely to be enormous potential in the field of construction and General infrastructure development to benefit in a big way from India. Big plans of the government, such as those in which he proposes to develop 100 “smart” cities, in any case, would be a great incentive for the industry.

In anticipation to get to these events in a country without a foreign policy, in connection with the Indian government, many foreign investment cement giants attracted. Ready availability of raw materials, such as lime stone and coal for the production of cement is a factor, consider the driving force for the growth of the cement industry.

The demand in the market

In India, the demand for cement is expected to increase due to the pressure of the government on major infrastructural projects up to 45 million tonnes of cement in the next three to four years.

Up to the year 2025, the demand for cement in India is nearly 600 million tons per year. In the field of housing, among other things, the high demand for cement in India controls, since in 67% of the total consumption. The Rest of the cement consumed is almost equal to commercial and industrial facilities, and infrastructure.

Cement companies have a great responsibility to increase their capacity to almost 56 million tonnes to meet rising demand. By the end of 2016, the capacity for the production of cement in India up to 395 tons, can grow to eight per cent. The capacity addition is expected to increase to 421 T at the time, which ends in 2017.

About 20 companies dominate the cement industry in India, as they produce 70% of the total cement production in the country. Take a look at the scenario in India:

– 97% of the total installed power output of 188 large cement plants
Rest 365 small plants

The big factories are mainly located in Rajasthan, Andhra Pradesh and Tamil Nadu.


Cement industry in the country, recently attracted a large investment, and as more and more construction and infrastructure activities lead to a steady growth of demand.

In the period from April 2000 until December 2015, USA 3.101 billion U.S. dollars of foreign direct investment on cement-and plaster-products, says the figures published industrial policy of India and the Department of promotion.

Large investments were made by the best manufacturers of cement in India, which is considered the best manufacturer of cement for the construction.

– Ultratech Cement in the process of buying Jaiprakash Associates and investments for the RS 16,500 crore.
– Birla Corporation Ltd on the acquisition of 2 cement Assets of lafarge in India for RS 5,000 rupees.
– Dalmia cement (Bharat) Ltd. expansion of business in the North-East with an investment in the amount of 2000 rupees crore.
– Jsw group is planning a company, the capacity for the production of cement at 30 million tons 5 million tons per year through the creation of loop blocks closer to its steel plants.
– Greenfield grinding units in the patients in GK and Bihar.

Initiatives of the government

The government of India, in its 12th five-year Plan sees the increase of the production capacity of the cement industry up to 150 T, are investing enormous sums in infrastructure.

In a similar way, the main aim of the constituents of cement Corporation of India in the year 1965, to the country in the production of cement, and self-sufficient. CCI has 10 units in the whole of India. At the same time, the government claims variety of Investment schemes to stimulate represented by the private sector, growth in the cement industry.

Here are a few Highlights of some such state initiatives:

– A number of measures to increase investment in infrastructure in the budget 2016-17, and the demand for cement is directly proportional to the infrastructure issues.
Selection 7,296 кроров RS for the Mission of the urban rejuvenation, the development of “Smart cities”.
– The selection for Pradhan Мантри Gram Sadak Yojana increased in the PC 19,000 кроров for FY17.

In addition to the Central government, in some countries, important initiatives for the promotion of the production of cement.

– Start-up of Low-Cost cement-government тамилнада. The sale begins in Rs190crore bag.
– The weight of the cement Assembly was set to the port of kochi, by the government of Kerala, on investments in the amount of 160 million rupees.
Offers crore rupees 9,200, were of the Council for attracting investments to Andhra Pradesh. They include 3 cement factory and a couple of other projects concession.

Economic growth and environmental protection are not in conflict. They are different sides of the same coin, if you stand on the long-term prosperity. – Henry Paulson

In order to reduce the energy consumption, and innovative ways of production of cement in a more efficient manner in India, you must press for energy-efficient measures. Water positive cement and manufacturing company, for example, two things are achieved. First, the best cement for construction to produce to stay in the competition. Secondly, he defines the nature of the saving of water production is also in the crowd.

India in the course of time, the need for new methods to minimize the power consumption. To this end, he cooperates with Switzerland technology and systems to improve the efficiency of the production of cement. The ability of India to meet the growing demand for cement from the industry of infrastructure depends on the success of this step.

Cement industry has been challenged in India by the government to avoid its decision to take Bitumen for all new projects for the construction of streets, and instead of cement. The reason for this is that the cement is not only robust, but also in the long run cheaper, Plus it is a product of the low maintenance.

The Road

For better cement-production company/x in India, States in the Eastern Region of the country, developing countries, in order to be fresh untapped markets. These regions may be a demand for cement for the future. On an even larger scale in the coming decades, many developing countries, including the Middle East and Arica, is likely to look at India as an important source for the Import of clinker and gray cement. This leads to an increase in the readiness of the cement industry in India. Among the hundreds of steel plants within the country, in the proximity of the ports to favorable positions must be prepared to the fierce competition with the plants in the interior of the country. For example, the cement works at Visakhapatnam, and in the ports of Gujarat, which is located directly on the sea, armed technically good.

In addition, in the cement industry in India, the company is expected to cement a larger number of foreign production. The main lure for foreign players is the constant demand for cement and, at best, the profitability of the company. The view on the current scenario of the market of cement, the domestic cement companies are also ready global lists about the GDR or FCCB.

Although the Indian government is taking many measures to improve the support of the market through the creation of cement-tight laws, such as increased infrastructure spending and tax cuts, the industry shows a lot of results, growing by leaps and bounds. This makes it the most important part of the history of economic development in India. And see of the own growth, the cement industry, in the industry, due to their size and expense, to more water-positive company-producers of cement, also contributes to the ecological sustainability effectively.


Leave A Reply