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    Shristy Singh
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    The Indian cement industry is the second largest market globally accounting for 8% of total production, with a total capacity of 347 million tonnes as of 2012-13. Cement demand is driven primarily by housing construction which accounts for 67% of consumption. While the industry grew at 8% over the last decade, growth has slowed recently due to economic sluggishness. Per capita cement consumption in India remains well below the world average, indicating significant future growth potential. The industry is divided into five regions with the south having the largest installed capacity at one-third of the national total. Foreign companies have invested heavily in India due to its growth prospects, with the top two producers now controlling about one-third of capacity despite the sector

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    The Indian cement industry is the second largest market globally accounting for 8% of total production, with a total capacity of 347 million tonnes as of 2012-13. Cement demand is driven primarily by housing construction which accounts for 67% of consumption. While the industry grew at 8% over the last decade, growth has slowed recently due to economic sluggishness. Per capita cement consumption in India remains well below the world average, indicating significant future growth potential. The industry is divided into five regions with the south having the largest installed capacity at one-third of the national total. Foreign companies have invested heavily in India due to its growth prospects, with the top two producers now controlling about one-third of capacity despite the sector

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    50 views2 pages

    Industry Background and Current Scenario

    Uploaded by

    Shristy Singh
    The Indian cement industry is the second largest market globally accounting for 8% of total production, with a total capacity of 347 million tonnes as of 2012-13. Cement demand is driven primarily by housing construction which accounts for 67% of consumption. While the industry grew at 8% over the last decade, growth has slowed recently due to economic sluggishness. Per capita cement consumption in India remains well below the world average, indicating significant future growth potential. The industry is divided into five regions with the south having the largest installed capacity at one-third of the national total. Foreign companies have invested heavily in India due to its growth prospects, with the top two producers now controlling about one-third of capacity despite the sector

    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Industry Background and current scenario

    The Indian cement industry is the 2nd largest market after China accounting for
    about 8% of the total global production. It had a total capacity of about 347 m
    tonnes (MT) as of financial year ended 2012-13. Cement is a cyclical commodity
    with a high correlation with GDP. The housing sector is the biggest demand driver
    of cement, accounting for about 67% of the total consumption. The other major
    consumers of cement include infrastructure (13%), commercial construction (11%)
    and industrial construction (9%).
    The Indian cement industry grew at a commendable rate in the last decade,
    registering a compounded growth of about 8%. However, the growth has slowed
    down in recent years owing to the sluggishness in the economy. Moreover, the per
    capita consumption of cement in India still remains substantially poor when
    compared with the world average. This underlines the tremendous scope for
    growth in the Indian cement industry in the long term.
    Cement, being a bulk commodity, is a freight intensive industry and transporting it
    over long distances can prove to be uneconomical. This has resulted in cement
    being largely a regional play with the industry divided into five main regions viz.
    north, south, west, east and the central region. The Southern region of India has the
    highest installed capacity, accounting for about one-third of the country's total
    installed cement capacity.
    Given the high potential for growth, quite a few foreign transnational companies
    have ventured into the Indian markets. Already, while companies like Lafarge,
    Heidelberg and Italicementi have made a couple of acquisitions, Holcim has
    increased its stake in domestic companies Ambuja Cements and ACC to over 50%
    to gain controlling interest. Consolidation has taken place with the top two cement
    groups controlling nearly one-third of the total domestic capacity. However, the
    balance capacity still remains quite fragmented.

    Top 5 cement companies in India


    ACC Limited:-

    Annual turnover(9339.64)

    Ambuja Cements Limited

    Annual turnover(7998.55)

    UltraTech Cement Limited

    Annual turnover(13980.75)

    India Cement Limited

    Annual turnover(3667.16)

    Shree Cement Limited

    Annual turnover(3558.64)

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