India is the second largest producer of cement around the world says an independent research. The cement industries of India became a significant part of its economy in 1982 and granted employment to more than a million people, directly or indirectly. No wonder, the Indian cement industry has attracted the huge investors, both from Indian as well as the foreign experts.
India has a lot of potential for developing the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Due to some of the recent major initiatives such as development of smart cities, it is expected to provide a major boost to the sector.
Recently, several foreign players have invested in the country and expected to be the contributor of major developments in the country aided by suitable government foreign initiatives. The growth of this sector is predicated because of the ready availability of the raw materials for making cement such as limestone and coal (Furnace).
Production Capacity
Presently, the biggest demand drivers of cement are these housing and real estate sectors, accounting for about sixty-five per cent of the total consumption in India. Some of the other leading consumers of cement include public infrastructure at twenty per cent and industrial development at fifteen per cent.
India’s overall cement production capacity was nearly four hundred and sixty million tonnes as of 2017-18. Its consumption is expected to grow by five per cent in the financial year of 2019 supported by pick-up in the housing segment and higher infrastructure spending. Currently, the industry is planning to produce three hundred megatons in order to meet its domestic demand and five megatons for exports requirement.
The Indian cement industry is currently dominated by certain companies. The top twenty cement organizations account for almost seventy per cent of the total cement production of the country. With four hundred small plants accounting for the rest, a total of two hundred large cement plants account for a cumulative installed capacity of over four hundred million tonnes. Out of these two hundred large cement plants, seventy-seven are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
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