Industry Research Update

Indian Cement Industry – Update

With 509 million tonnes per year (mtpa) of cement production capacity as of 2018,

India is the second largest cement producer in the world and accounts for over 8 per

cent of the global installed capacity, as of 2018. Cement production is reached to

337.32 million tonnes in 2018-19 and stood at 216.8 million tonnes between April-

November 2019. The cement production capacity is estimated to touch 550 MT by

2020. Of the total capacity, 98 per cent lies with the private sector and the rest with

the public sector. The top 20 companies account for around 70 per cent of the total

production.

The demand of cement industry is expected to achieve 550-600 million tonnes per

annum constantly by 2025 because of the expanding requests of different divisions

i.e. housing, commercial construction and industrial construction.

A total of 210 large cement plants together account for 410 million tonnes of

installed capacity in the country, while 350 mini cement plants make up the rest. Of

the total 210 large cement plants in India, 77 are located in the states of Andhra

Pradesh, Rajasthan and Tamil Nadu. Cement production in India increased from

230.49 million tonnes in 2011-12 to 297.56 million tonnes in 2017-18. India’s

exports of cement, clinker and asbestos cement increased at CAGR of 10.54 per cent

FRPT Research 1

EMISPDF in-indusindbank from 203.201.220.36 on 2020-05-09 13:33:24 BST. DownloadPDF.

Downloaded by in-indusindbank from 203.201.220.36 at 2020-05-09 13:33:24 BST. EMIS. Unauthorized Distribution Prohibited.
 Industry Research Update

between FY12-FY20 (April-July 2019) to reach US$ 177.93 million. During the same

period imports of cement, clinker and asbestos cement increased at a CAGR of 7.99

per cent to US$ 57.61 million in FY20. To enhance the source of capital for

infrastructure financing, Credit Guarantee Enhancement Corporation for which

regulations have been notified by the RBI, will be set up in 2019-20.

FDI inflow in industry related to manufacturing of cement & gypsum products

reached US$ 5.28 billion between April 2000 and September 2019.

The Government of India is strongly focused on infrastructure development to boost

economic growth and is aiming for 100 smart cities. The government also intends to

expand the capacity of the railways and the facilities for handling and storage to

ease the transportation of cement and reduce transportation costs. These measures

would lead to increased construction activity thereby boosting cement demand. As

per Union Budget 2019-20, Government is expected to upgrade 1,25,000 kms of

road length over the next five years.

Source : IBEF

FRPT Research 2

EMISPDF in-indusindbank from 203.201.220.36 on 2020-05-09 13:33:24 BST. DownloadPDF.

Downloaded by in-indusindbank from 203.201.220.36 at 2020-05-09 13:33:24 BST. EMIS. Unauthorized Distribution Prohibited.
 Industry Research Update

Disclaimer
The contents (Information, material, suggestions) have been provided for general
information. The information and opinions contained in the document have been
compiled from publicly available data or sources believed to be reliable. If the said
content contains any mistakes, omissions, inaccuracies and typographical errors,
etc. FRPT Research assumes no responsibility thereof. The company does not
warrant the totality and absolute accuracy, adequacy or completeness of this
information and materials and expressly disclaims any liability for errors or
omissions in this information and materials herein.

Copyright © by ‘FRPT Research’

No part of this publication may be reproduced, stored in a retrieval system, or

transmitted in any form or by any means - electronic, mechanical, recording, photo
copying or otherwise – without the permission of FRPT Research.

For more details kindly contact :: frptresearch@gmail.com

FRPT Research 3

EMISPDF in-indusindbank from 203.201.220.36 on 2020-05-09 13:33:24 BST. DownloadPDF.

Downloaded by in-indusindbank from 203.201.220.36 at 2020-05-09 13:33:24 BST. EMIS. Unauthorized Distribution Prohibited.