Cement

Cement industry is one of the crucial industries for any economy on which country builds its infrastructure.

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Indian cement industry is the second-largest cement producer in the world after China; ahead of the US and Japan, with a total installed capacity of ~480 million tonnes per annum (MTPA). India consumes nearly 7 per cent of global cement production. In India, the per capita cement consumption stood at 210 kg, which is lowest among the developing countries, whereas world’s average per capita cement consumption stood at nearly 580 kg. However, India's fast-developing economy offers great opportunities due to the rising demand for cement.

On the geographical front, the cement industry comprises of South (33 per cent), North (22 per cent), East (19 per cent), West (13 per cent) and Central (13 per cent). The cement industry consists of 225 plants owned by 65 players, out of which top 5 players dominate the industry with 51 per cent capacity.

The cement industry is highly capital-intensive, competitive and cyclical in nature. Considering the oligopolistic nature of the cement industry, pricing control by large players stops new players from entering into the industry. The major growth drivers of the cement industry are housing (54 per cent), infrastructure (22 per cent), industrial & commercial (12 per cent) and low-cost housing (12 per cent).