CEMENT

May 2024
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Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Strategies Adopted 11

Growth Drivers and Opportunities 14

Key Industry Contacts 23

Appendix 25

2
Executive summary

2. DOMINATED BY 3. HIGHER SHARES

PRIVATE PLAYERS OF LARGE PLANTS
▪ Of the total capacity, 98% lies with private
▪ 210 large cement plants account for a cumulative
sector and the rest with public sector.
installed capacity of over 410 MT, while over 350
▪ The top 20 companies account for around
mini cement plants have an estimated production
70% of the total production.
capacity of nearly 11.10 MT. India’s top five cement
1. SECOND-LARGEST companies account for 48% of India’s 600 MT
capacity.
CEMENT MARKET
▪ India is the world’s second-largest
cement producer.
▪ At present, the installed capacity of
cement in India is 600 MTPA with a
production of 391 MTPA.
▪ The Indian cement industry is 4. LARGE
proceeding with expansion plans and
capacity additions, despite dampened
CONCENTRATION IN
demand expected to persist through the SOUTH AND WEST
first half of FY25. Cement giants
foresee a modest 6-7% volume growth ▪ Of the total 210 large cement
this fiscal year, even though the period
has begun with a pricing downturn. 2 3 plants in India, 77 are situated in
the states of Andhra Pradesh,
▪ Between FY12 and FY23, the installed Rajasthan & Tamil Nadu.
capacity grew by 61% to 570 MT from
353 MT in FY12.
▪ India’s overall cement production stood
at 374.55 million tonnes (MT) in FY23.
▪ In FY27, cement demand is expected to 1 4
reach 450.78 MT.

Source: Cement Manufacturers Association, Ministry of External Affairs, DPIIT ,Economic Times.

3
Advantage India

4
Advantage India
1. Robust demand
► India's cement production reached 374.55
million tonnes in FY23, a growth rate of
6.83% year-on-year (yoy).
► India's cement industry, as per CRISIL
Ratings, plans to increase its capacity by
150-160 MT between FY25 and FY28,
building upon the 119 MT annual capacity
addition over the last five years, to cater to
growing infrastructure and housing
demands.
► Indian cement demand is projected to grow
by 6-7% in FY25, following a strong 7-8%
YoY growth in the last quarter of FY24.
Despite a pricing downturn due to
increased competition, average cement
prices declined by around 1.5% in FY24.
► Higher allocation for infrastructure– Rs.
11.11 trillion (US$ 134 billion), apart from
additional expenditure on green transition,
is likely to boost demand for cement.
4. Long-term potential
► Oligopoly market, where large players have
partial pricing control.
► Low threat from substitutes.
► Indian cement companies are among the
world’s greenest cement manufacturers.
► As outlined in the interim budget for the
1 4 fiscal year 2024-2025, the PM Awas
Yojana (Grameen) is nearing its target of
three crore houses, with plans to initiate an
additional two crore houses over the next
five years to accommodate the increasing
ADVANTAGE number of households.
► Shree Cement announces Rs 7,000 crore
INDIA
2 3
(US$ 844 million) investment for 12 million
tonnes capacity expansion in India.
► India's top four cement companies—
UltraTech, ACC-Ambuja, Shree Cement,
and Dalmia Cement—are set to add over
42 million tonnes of capacity in FY25,
increasing their market share from 48% in
FY23 to an expected 54% by FY26.

3. Increasing investments
2. Attractive opportunities
► FDI inflows in the industry, related to the
► In October 2021, Prime Minister, Mr. Narendra Modi, launched the ‘PM Gati Shakti - manufacturing of cement and gypsum
National Master Plan (NMP)’ for multimodal connectivity. Gati Shakti will bring synergy to products, reached Rs. 508 billion (US$ 6.10
create a world-class, seamless multimodal transport network in India. This will boost the billion) between April 2000-December 2023.
demand for cement in the future. ► National Infrastructure Pipeline (NIP)
► Opportunities available in areas such as housing, dedicated freight corridors, ports and introduced projects worth Rs. 102 lakh crore
other infrastructure projects. (US$ 14.59 billion) for the next five years.
► Government has plans for 33.4% outlays for capital investments to Rs. 10 lakh crore ► As per the Union Budget 2023-24, the
(US$ 120 billion) and outlays for railways of Rs. 2.4 lakh crore (US$ 29.05 billion). Also, government approved an outlay of Rs. 2.7
plans to build 100 new significant transport projects involving an investment of Rs. lakh crore (US$ 32.57 billion) for the Ministry
75,000 crore (US$ 9.04 billion) for end-to-end connectivity for ports, coal, steel etc. of Road Transport and Highways i.e., 30%
higher as compared to the budget estimate of
Source: Budget 2024-25, News Articles, DPIIT, *Ultratech investors presentation May 2018 Rs. 1.99 lakh crore (US$ 24.01 billion).

5
 Market Overview and Trends

MARKET OVERVIEW

6
Market overview
▪ India’s cement market accounts for 7% of the global installed capacity.

▪ India’s cement production for FY25 is expected to grow by 8-9% Top Cement Producers in India (Net Sales in FY24) (in US$
driven by infrastructure-led investment and mass residential projects. billion)

▪ Cement consumption is expected to reach 450.78 million tonnes by

the end of FY27.

▪ Cement production increased by 10.6% in March 2024 over March

2.15
2023. Its cumulative index increased by 9.1% during April-March,
2023-24 over the corresponding period of the previous year.
Ambuja Cement
2.35
▪ India's cement production reached 374.55 million tonnes in FY23, a
growth rate of 6.83% year-on-year (yoy). 2.4 Shree Cement Ltd.
▪ It is supported by a high level of activity going on in real estate and
high Government spending on smart cities and urban infrastructure.

▪ Growth in the Infrastructure and real estate sector, post-COVID-19 ACC Ltd.
pandemic, is likely to augment the demand for cement in 2021. The
8.39
industry is likely to add an ~8 MTPA capacity in cement production.

▪ In 2023, infrastructure emerged as the top sector, attracting Rs. 9.65 UltraTech Cement
lakh crore (US$ 11.6 billion) across 57 deals, marking a 29% year-on-
year growth (compared to Rs. 7.49 lakh crore (US$ 9 billion) across
75 deals in 2022), representing the second-highest investment level
ever in PE/VC.

▪ Real estate followed closely as the second-largest sector in 2023,

witnessing a record-high of Rs. 6.64 lakh crore (US$ 8 billion) across
55 deals, reflecting a 15% increase year-on-year (compared to Rs.
5.74 trillion (US$ 6.9 billion) across 95 deals in 2022), marking the
highest-ever value of PE/VC investments in this sector.
Source: Cement Manufacturers Association, Crisil, Savills India, News Articles, Ernst & Young.

7
Market overview

Cement Production in India (million tonnes) Cement consumption in India (million tonnes)

400 400
350 350
300 300
250 250
200 200
150 150
100 100
50 50
0 0
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total 224 241 250 261 274 270 288 328 327 285 351 375 Total 222 240 247 257 271 267 285 325 328 285 351 375

▪ Indian cement demand is projected to grow by 6-7% in FY25, following a strong 7-8% YoY growth in the last quarter of FY24. Despite a pricing
downturn due to increased competition, average cement prices declined by around 1.5% in FY24.
▪ The consumption of cement in India reached 375.19 million tonnes in FY23 while the cement production reached 374.55 MT in FY23.
▪ India’s overall cement production accounted for 350.59 million tonnes (MT) in FY22 and 284.91 million tonnes (MT) in FY21.
▪ The country’s cement industry is among the world’s most energy-efficient industries, in terms of specific energy consumption.

Source: Infomerics

8
Export and import of cement

Cement Export from India# (US$ million) Cement Import to India# (US$ million)

^CAGR 0.42%
350
800
300
700

288.42
682.32
250
600
601.78 587.71
500 200

150

166.50
400

150.21
141.80

126.69
300 357.44 100

110.32
92.52

91.93
200

68.34
50

100 134.74 0

0
FY19-20 FY20-21 FY21-22 FY22-23 FY23-24

▪ As per DGCIS, India’s export of Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cement stood at
Rs. 4894 crore (US$ 587.71 million) in FY24 while the imports were Rs. 1386 crore (US$ 166.50 million).

▪ India’s export of panel cement, clinkers, and asbestos cement products stood at US$ 682.32 million in FY23 while the imports were US$ 288.42
million.

▪ India exported cement to countries such as Sri Lanka, Nepal, the US, the UAE and Bangladesh.

Note: #Including Cement, Clinker and Asbestos Cement, ^CAGR is up to FY20.

Source: DGCIS

9
Installed capacity & key markets in each of the geographic
regions

North
(Rajasthan,
Central
Punjab, Haryana)
(Uttar Pradesh,
93.5 MTPA
Madhya Pradesh)
68.91 MTPA

West (Gujarat,
East
Maharashtra)
(West Bengal,
78.52 MTPA
Chhattisgarh, Odisha,
Jharkhand)
84.12 MTPA

South
(Tamil Nadu, Andhra
Pradesh, Telangana
Karnataka)
183.11 MTPA

Notes: MTPA-Million Tonnes Per Annum, E-Estimates

Source: Indian Minerals Yearbook by Indian Bureau of Mines 2020; Ultratech Cement

10
 Strategies Adopted

RECENT TRENDS AND STRATEGIES

11
Recent strategies
1. Increasing presence
of cement players
▪ Presence of small & mid-size cement
players across regions is increasing,
which helps diminish market
concentration of industry leaders.
▪ A large number of foreign players
have also entered the market owing
to the profit margins, constant
demand and right valuation.
2. Carbon neutral goals
▪ UltraTech Cement will deploy 500
electric trucks and 1,000 LNG/CNG
vehicles by June 2025, cutting
transport-related carbon emissions by
680 tonnes annually. Currently, it
operates over 390 CNG and 50 LNG
trucks. UltraTech aims to increase its
green energy usage to 85% by 2030
and expand its production capacity to
200 million tonnes.
▪ In October 2022, UltraTech announced
that it has been granted Environmental
Product Declaration (EPD) certificates
for four of its cement products, which
are Ordinary Portland Cement (OPC), •
Portland Pozzolana Cement (PPC),
Portland Slag Cement (PSC) and PCC
(Portland Composite Cement).
Source: Union Budget 2024- 25, Emkay Global Financial Services, News Articles
12
5. Strategic partnerships
▪ Procurement of raw materials such as fly ash:
Companies such as the National Thermal Power
Corporation Limited (NTPC Ltd.) are
collaborating with cement manufacturers (such
as Ultratech Cement, Rajshree Cement, Dalmia
Cement and ACC plants) across the country to
supply fly ash. This also helps achieve 100%
utilisation of the by-product (fly ash) produced
during power generation.
5 ▪ UltraTech Cement Limited pledged Rs. 1,000
1 crore (US$ 120 million), while Star Cement
committed Rs. 650 crore (US$ 78 million) on the
inaugural day, December 13, of the Bihar
Business Connect-2023 Global Investors Summit
at Gyan Bhawan, Patna. 15 prominent
companies in general manufacturing also signed
Memorandums of Understandings.
▪ Shree Cement plans to invest Rs 2,000 crore
2 4 (US$ 240 million) to expand its cement
production capacity in Uttar Pradesh by nearly 7
million tonnes annually over the next 24 months.
The expansion includes new 3.5 MTPA facilities
in Etah and Prayagraj, initiated under an MoU
3 with the state government.
4. Adoption of cement instead of
3. Housing for All bitumen and ready-mix concrete
Under the housing for all segment, in 2024-25
the budget estimate for Pradhan Mantri Awas ▪ The Government of India has decided to adopt
Yojana was Rs. 80,671 crore (US$ 9.73 billion). bulk cement instead of bitumen for the
• Housing and real estate sectors account for construction of all new road projects on the
nearly 65% of the total cement consumption in grounds that cement is more durable & cheaper to
India. maintain than bitumen in the long run.
▪ Companies are trying to develop a niche market
for Ready-mix concrete (RMC).
Successful use of alternate fuels in cement production

Company/Plant Strategy Benefits

Use bioenergy through burning of coffee

Madras Cement's Alathiyur plant Annual cost savings of US$ 1.7 million
husk & cashew nut shells

Adoption of plant matter and refuse-derived

fuel (RDF) for 100% of its fuel needs Transition to renewable power by 2030
Dalmia Cement
0.5MT/yr carbon capture and storage and carbon negative by 2040
facility in 2022

Use Low Sulphur Heavy Stock (LSHS)

India Cements Ltd's Dalavoi plant Annual savings of US$ 6,500 approx.
sludge as alternate fuel

Use tyre chips & rubber dust as alternate Reduction of about 30,000 tonnes of
fuel carbon emissions annually
UltraTech Cement
Increase its Waste Heat Recovery System Generate over 650 million units of
(WHRS) renewable power

Substitute 10% of coal used in kilns with Higher energy savings and lower
Lafarge's Arasmeta plant
rice husk carbon emissions

Source: CMA

13
 Growth Drivers and Opportunities

GROWTH DRIVERS

14
Growth drivers and opportunities
▪ The demand of the 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 Percentage Share of Cement Demand in FY21
construction and industrial construction.

Housing and Real Estate

▪ Government initiatives like Housing for All will push demand in the 11%
sector.
▪ The India Residential Real Estate Market size is estimated at Rs.18.89 29% Rural Housing
12%
lakh crore (US$ 227.26 billion) in 2024 and is expected to reach Rs. Urban Housing
57.34 lakh crore (US$ 687.27 billion) by 2029. Strong growth in rural Infrastructure
housing and low-cost housing to amplify demand.
Low-cost Housing
Commercial
Public Infrastructure
23%
▪ As per Interim Budget 2024-25 a spending of over Rs. 11.1 lakh crore
(US$ 133.86 billion) on infrastructure was proposed. 25%
▪ As per the Union Budget 2023-24, the government approved an outlay
of Rs. 2.7 lakh crore (US$ 32.57 billion) for the Ministry of Road
Transport and Highways.

▪ In October 2021, Prime Minister, Mr. Narendra Modi, launched the ‘PM Gati Shakti-National Master Plan (NMP)’ for multimodal connectivity. Gati
Shakti will bring synergy to create a world-class, seamless multimodal transport network in India. This will boost the demand for cement in the
future.
▪ As per Invest India, the National Infrastructure Pipeline (NIP) expanded to 9,305 projects from 7,400 projects.
▪ Government of India’s push with Smart Cities Mission and AMRUT.

Industrial Development
▪ Strong economic growth is expected to lead to growth of the industrial sector and in turn increase in demand in the long run.
▪ The Navrattan Group is set to launch Green Cement in the Indian market. This sustainable alternative to traditional Portland cement aims to
significantly reduce carbon emissions and environmental impact by using alternative materials and production techniques.

Source: Ministry of External Affairs (Investment and Technology Promotion Division), AT Kearney, CARE Ratings, NAREDCO and APREA, Union Budget 2024-25

15
Government Initiatives
Interim Union Budget 2024-25
▪ The Union Budget allocated Rs. 11.1 lakh crore (US$ 133.86 billion) for induced capital investments, continued 50 years of

1 interest-free loans, and highest ever capital outlay of Rs. 2.52 lakh crore (US$ 30.39 billion) for railways.
▪ The government's push for infrastructure, combined with housing for all, the Smart Cities Mission and Swachh Bharat Mission
programmes, will boost the demand for cement in the country.

Pradhan Mantri Awaas Yojana

▪ In the Union Budget 2023-24, an outlay of Rs. 79,590 crore (US$ 9.63 billion) was allotted under the Pradhan Mantri Awas Yojana.
As of August 8, 2023, more than 118.9 lakh houses have been sanctioned, and more than 76.11 lakh houses are completed under
the PMAY-Urban. As of May 2023, 2.85 crore houses were sanctioned and 2.24 crore houses were completed under PMAY-Gramin.

2 ▪ Pradhan Mantri Awas Yojana is an initiative by the government to provide affordable housing to economically weaker sections and
low-income groups through financial assistance.
▪ As outlined in the interim budget for the fiscal year 2024-2025, the PM Awas Yojana (Grameen) is nearing its target of three crore
houses, with plans to initiate an additional two crore houses over the next five years to accommodate the increasing number of
households.

Development of Council Members

▪ In July 2021, the government established a council of 25 members (comprising UltraTech Cement MD Mr. K C Jhanwar,

3 Dalmia Bharat Group CMD Mr. Puneet Dalmia) for the cement industry to reduce waste, achieve maximum production,
enhance quality, reduce costs and encourage standardisation of products.

Source: Union Budget 2024-25

16
Investment scenario…(1/6)

1
Ramco Cements
▪ Ramco Cements Ltd proposes a Rs.1,403 crore (US$ 168 million) investment to double capacity at its Kalavatala plant in Andhra Pradesh
and set up a 10 MW waste heat recovery system at its Ramasamy Raja Nagar plant in Tamil Nadu, aiming for a total installed capacity of 19
MTPA for clinker and 26 MTPA for cement by FY26.
▪ Ramco Cements is planning to invest a total of US$ 91.3 million towards growing its capacity FY24. Its planned investments consist of US$
15.8 million in an expansion to its Haridaspur grinding plant in Odisha and US$ 75.5 million in the acquisition of land in Bommanalli,
Karnataka, on which to establish a limestone mine.
▪ In June 2023, Ramco Cements commissioned a 3,000-tonne-per-day integrated cement line at its Ramamasamy Raja Nagar cement plant in
Tamil Nadu.
▪ The Ramco Cements Ltd plans to set up a 2nd line with a capacity of 0.9 MTPA at its grinding unit in Odisha for an outlay of Rs. 130 crore
(US$ 15.7 million). Its cement capacity is 21 MTPA and its clinker capacity is 14 MPTA. The company spent Rs. 986 crore (US$ 119.12
million) on capex in H1FY22-23 and plans to spend Rs. 731 crore (US$ 88.31 million) more in the H2FY22-23 and Rs. 892 crore (US$
107.76 million) more in FY24.
▪ In August 2021, Ramco Cement plans to invest additional Rs. 601.2 crore (US$ 80.8 million) to upgrade cement plants that will be completed
by March 2022. In April 2021, the company had invested Rs. 401 crore (US$ 53.9 million) for upgrades.

2
Penna Cement
• In July 2022, Penna cement proposes to increase the limestone production from 3.20 to 4.50 MTPA in the Anantapur District Andhra
Pradesh.
• In October 2021, Hyderabad-based Penna Cement Industries, received approval from the capital markets regulator Securities and
Exchange Board of India (SEBI), to go ahead with its Rs. 1,550 crore (US$ 206.75 million) initial public offering (IPO).

Note: *MTPA-Million Tonnes Per Annum

Source: Company Website, News Articles

17
Investment scenario…(2/6)

3
ACC
▪ In November 2023, ACC received a renewed licence for its Rajasthan limestone mine, allowing it to increase its extraction of limestone
there to 1.5 million tonnes per year.
▪ In July 2023, Adani Group subsidiary ACC said that it will add 16 MT per year-worth of new cement capacity in the five years up to the
end of the 2028 financial year.
▪ In May 2023, ACC launched Bagcrete, a hassle-free and user-friendly concrete solution for all types of construction demands, which is a
pre-blended mixture of cement, sand, and aggregates.
▪ In May 2023, Adani Group-owned ACC and Ambuja Cements launched a modern Cement and Concrete R&D facility at Kalamboli at the
outskirts of Mumbai.
▪ 2.2 MTPA cement grinding unit at Salai Banwa, Uttar Pradesh is still under progress with an estimated value of Rs. 600.8 crore (US$
72.58 million).
▪ ACC Limited, announced the successful commissioning of a 1.6 MTPA Grinding Unit (GU) at Tikaria in Uttar Pradesh in February 2022.
▪ On February 6, 2021, ACC announced the groundbreaking ceremony of its greenfield project of 2.7 MTPA integrated cement plant with 1
MTPA cement grinding unit at Ametha in Kymore, Madhya Pradesh.
▪ In January 2021, the company commissioned its new grinding unit at Sindri, in Dhanbad District of Jharkhand, adding an additional
capacity of 1.4 million tonnes per annum to the existing 3 MTPA unit.

4
Heidelberg Cement
▪ Heidelberg Cement, a Germany-based cement manufacturer, has commissioned phase-I of its Jhansi grinding unit. The company
has undertaken an investment worth US$ 259.4 million for expanding its capacity to 2.9 MT.
▪ Heidelberg Materials introduces evoZero, the world's first carbon-captured net-zero cement under its new brand, pioneering carbon
capture and storage (CCS) technology at its Brevik plant in Norway, marking a paradigm shift in decarbonizing the building materials
sector.
▪ As of 2020, the company has four cement manufacturing plant, four grinding units and one cement terminal in the country.
▪ In November 2021, Heidelberg Cement India (HCIL) stated that India Ratings and Research has upgraded the company's long-term
issuer rating to 'IND AAA' from 'IND AA+' and has maintained 'stable' outlook on the same.

Note: *MTPA-Million Tonnes Per Annum

Source: Company Website, News Articles

18
Investment scenario…(3/6)

5
UltraTech Cement
▪ UltraTech Cement allocates Rs. 32,400 crore (US$ 3.89 billion) for capital expenditure over the next three years, aiming to increase
capacity to 200 MTPA; recent commissioning of two greenfield projects adds 5.4 MTPA, with ongoing expansions set to bring total
capacity to 198.2 MTPA, supporting India's robust growth trajectory in the cement sector.
▪ In December 2023, UltraTech Cement concluded an agreement to acquire Kesoram Cement from Kesoram Industries for US$ 912
million.
▪ In October 2023, UltraTech Cement announced planned new capital expenditure (CAPEX) investments worth US$ 1.56 billion to grow
its production capacity, beginning in the 2026 financial year.
▪ On August 2, 2023, UltraTech Cement Ltd. announced the commissioning of the 1.2 million tonnes per annum (mtpa) brownfield
cement capacity at Magdalla, Gujarat.
▪ In May 2023, UltraTech Cement Ltd,’s wholly owned subsidiary UltraTech Nathdwara Cement Ltd (UNCL) commissioned a 0.8 million
tonnes per annum (MTPA) brownfield cement factory at Neem Ka Thana, Rajasthan.
▪ UltraTech Cement and Coolbrook, a transformational technology and engineering company, will jointly develop a project to implement
Coolbrook’s RotoDynamic Heater (RDH) technology in one of UltraTech’s cement manufacturing units.
▪ In December 2022, UltraTech Cement, an Aditya Birla group company, commissioned 1.9 MTPA greenfield clinker-backed grinding
capacity at Pali Cement Works, Rajasthan. The company’s total cement manufacturing capacity stood at 121.35 MTPA with 16.25
MTPA in Rajasthan spread across 5 different plant locations.
▪ UltraTech Cement has expanded 3.2 MTA of cement capacity by commissioning capacity at its Patliputra Cement Works in Bihar,
Dankuni Cement Works in West Bengal, and Line II of the Bara grinding mill in Uttar Pradesh. Moreover, the company has already
significantly increased its capacity over the past five years from 69.65 MTPA to 119.95 MTPA.
▪ Additionally, UltraTech Cement started operating at the bulk terminal in Kalamboli, Navi Mumbai. This is the company’s 7th bulk
terminal in India. The second clinker line at Hirmi Cement Works, commissioned at 2.7 MTA, was put into service as part of the
ongoing expansion plan in the first quarter of FY22–23. It is also planned to commission a 1.3 MTA cement mill upgrade in the second
quarter of FY22-23.

Note: *MTPA-Million Tonnes Per Annum

Source: Company Website, News Articles

19
Investment scenario…(4/6)
6
Dalmia Cement
▪ In October 2023, Dalmia Bharat announced a planned investment of US$ 10.9 million in a grinding unit expansion at its 1 million
tonnes/year Banjari cement plant in Bihar.
▪ In June 2023, Dalmia Bharat announced a capacity target of 120 MT per year by the end of 2031.
▪ Dalmia Cement (Bharat) was planning to invest US$ 560 million following the signing of a memorandum of understanding (MoU) with the
Assam government on the construction of a new cement plant in the state.
▪ In May 2023, Dalmia Cement (Bharat) launched Dalmia Supreme cement, a Portland pozzolana cement (PPC), in the Eastern India
market.
▪ Dalmia Bharat was planning to enhance their cement production capacity by 12.5 MTPA to 48.4 MTPA by the end of FY24 by investing
Rs. 9,000 crore (US$ 1.08 billion). In 2022, their current cement production capacity stands at 35.9 MTPA.
▪ Dalmia Bharat plans to expand its footprint in Central, Northern, and Western India through capital expenditure investments, in order to
reach a pan-India cement capacity of 54 MT/year by the end of FY24.
▪ The company has finalized 2 lands in Chennai and Tuticorin to set up 2 grinding units for greenfield projects that would add cement
capacity by 3 MTPA.
▪ Moreover, the company plans to upgrade and de-bottleneck the existing units to add another 5.3 MTPA to the total production capacity.
▪ In November 2021, Dalmia Cement announced plans to invest US$ 70.1 million for setting up its upcoming 2MT/yr cement plant in
Bokaro, Jharkhand.
▪ In October 2021, Dalmia Cement became the first cement company in India to receive a green accreditation from the Green product
rating for Integrated Habitat Assessment (GRIHA) Council.

7
JSW Cement
▪ JSW Cement's new Rajasthan greenfield plant worth Rs. 3,000 crore (US$ 360 million) nears completion, boasting a 3.3 MTPA clinkerization
unit and aiming to become operational soon. This strategic move strengthens their foothold in North India's cement market (Rajasthan,
Haryana, Punjab, NCR) and is expected to generate over 1,000 jobs.
▪ JSW Group initiates IPO process for JSW Cement, aiming to raise Rs 6,000 crore (US$ 720 million), potentially the largest in the sector, with
an array of bankers enlisted. Plans include diluting 10-15% stake, with further dilution over two years for capacity expansion to 60 MTPA
▪ JSW Cement is now on the path to achieving 50 MTPA with a pan-India footprint in the coming years due to the acquisition of the India
Cements Madhya Pradesh operation. The corporation wants to grow from its current level of 17 MTPA to 25 MTPA by 2024–2025. A modern
residential colony in Madhya Pradesh, a 2.5 MTPA grinding facility in Uttar Pradesh, an integrated cement plant with a 2.5 MTPA clinker
capacity, 2.5 MTPA grinding capacity, and a 15 MW waste heat recovery system are all included in the proposed investment.
Source: Company Website, News Articles

20
Investment scenario…(5/6)

▪ In October 2021, JSW Group collaborated with Salesforce to support an ambitious digital strategy. Using Salesforce’s Sales Cloud and
Service Cloud, JSW Group will offer a single group interface, enhancing distribution, customer experience and supply chain for the large
project division across its steel and cement businesses.
▪ In July 2021, JSW Cement signed an agreement with Synergy Metals Investments Holding Ltd. and Apollo Global Management Inc. to
raise investment funds worth Rs. 1,500 crore (US$ 202.35 million) and expand its production capacity to 25 million tonnes from 14 million
tonnes.
▪ In June 2021, JSW Cement entered construction chemical business with the introduction of an exclusive green product range.
▪ In June 2021, the company announced the establishment of ‘JSW Concrete’ a ready-mix concrete (RMC) business to provide a wide
range of building material products to customers.

8
Shree Cement
• Shree Cement announces Rs. 7,000 crore (US$ 844 million) investment for 12 million tonnes capacity expansion in India, including clinker
manufacturing plants in Rajasthan and Karnataka, along with cement plants in Rajasthan, Uttar Pradesh, and Karnataka by March 2025.
• In June 2023, Shree Cement announced four planned capacity expansion projects that aim to increase its installed cement production
capacity by 20% to 55.9 MT per year.
• Shree Cement plans to invest Rs. 4,750 crore (US$ 573.86 million), out of which Rs. 3,500 crore (US$ 422.8 million ) will be utilized for
enhancing cement capacity, Rs. 500 crore (US$ 60.4 million) towards setting up solar power, and Rs. 700 crore (US$ 84.57 million )
towards its clinker manufacturing capacity.
• The integrated cement plant, with a budget allocation of Rs. 3,500 crore (US$ 422.8 million) in Rajasthan, will add a cement capacity of
3.50 million tonnes per annum (MTPA).
• In September 2021, Shree Cement launched three projects that were valued at Rs. 4,806 crore (US$ 646 million). Of this, Rs. 3,541 crore
(US$ 476 million) will be used to establish a 3.8 MTPA cement plant in Rajasthan, while the remaining amount will be spent on establishing
a grinding plant in West Bengal and installing solar power plants at various cement plants across the country that are valued at Rs. 759
crore (US$ 102 million) and Rs. 506 crore (US$ 68 million), respectively.
• The company target to expand capacity to 55 MTPA by 2023 and 75-80 MTPA by 2026.
• In February 2021, IBM collaborated with Shree Cement to run their database and core business applications using AIX and Red Hat on
IBM POWER9-based IBM Power Systems. The implementation will allow Shree Cement to seamlessly enhance its productivity and enable
supply chain efficiencies across its manufacturing plants.

Source: Company Website, News Articles

21
Investment scenario…(6/6)

9
Ambuja Cement
• Ambuja Cements, a subsidiary of the Adani Group, announced an investment of Rs. 6,000 crore (US$ 721 million) to set up 1,000
MW of renewable power capacity in Gujarat and Rajasthan. The investment will include a 600 MW solar power project and a 150
MW wind power project in Gujarat, as well as a 250 MW solar power project in Rajasthan.
• In August 2023, Ambuja Cements concluded a deal to acquire a 57% stake in Sanghi Industries for US$ 202 million.
• In May 2023, Adani Group-owned ACC and Ambuja Cements launched a modern Cement and Concrete R&D facility at Kalamboli at
the outskirts of Mumbai.
• Ambuja Cements is to invest Rs. 3,500 crore (US$ 422.8 million) to increase the capacity of their cement grinding. The company now
has six integrated cement manufacturing plants, eight cement grinding units, and a capacity to produce 31 million tonnes of cement
annually (MTPA).
• In October 2021, Ambuja Cements, under its regulatory filing, announced that it has successfully started the commercial production
of clinker and cement in its newly commissioned Marwar Greenfield Project in Rajasthan’s Nagaur District.
• In September 2021, Ambuja Cement introduced Concrete Futures Laboatories to test various aspects of cement and concrete.
• In August 2021, Ambuja Cement announced to invest Rs. 310 crore (US$ 41.82 million) to expand its manufacturing capacity in
Ropar Unit, Punjab and cater to the rising demand from manufacturing sector for housing construction and public infrastructure
development. The expansion activities are expected to be completed by June 2023.

Note: *MTPA-Million Tonnes Per Annum

Source: Company Website, News Articles

22
Key Industry Contacts

23
Key Industry Contacts
Agency
Cement Manufacturers' Association
(CMA)
Indian Concrete Institute
National Council for Cement and
Building Materials
24
Contact Information
3rd Floor, Shri Sharda Institute of Indian Management -Research (SSIIM),
7 Institutional Area, Vasant Kunj, Phase-II, New Delhi,
Delhi 110070.
Phone: 91-120-2411955, 2411957, 2411958
E-mail: cmand@cmaindia.org
Website: www.cmaindia.org/index.html
Ocean Crest 79, Third Main Road, Gandhi Nagar, Adyar, Chennai - 600
020
Phone: 91-44-24912602
Fax: 91-44-24455148
E-mail: ici3@vsnl.in , ici4@airtelmail.in , vj6314@gmail.com
Website: www.indianconcreteinstitute.org
34th Milestone, Delhi-Mathura Road, Ballabgarh - 121 004 Haryana, India
Phone: 91-129-4192222, 2242051, 91-129-4192239, 4192305
E-mail: cqcb@ncbindia.com , ncb.cqc@gmail.com
Website: https://www.ncbindia.com/
Appendix

25
Glossary

▪ CMA: Cement Manufacturers' Association

▪ GDP: Gross Domestic Product

▪ GoI: Government of India

▪ Rs.: Indian Rupee

▪ MTPA: Million Tonnes Per Annum

▪ NE India: North-East India

▪ FY: Indian Financial Year (April to March); FY10 implies April 2009 to March 2010

▪ US$: US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

26
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95
2012 53.49
2012-13 54.45
2013 58.63
2013-14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016 67.21
2016-17 67.09
2017 65.12
2017-18 64.45
2018 68.36
2018-19 69.89
2019 69.89
2019-20 70.49
2020 74.18
2020-21 73.20
2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023 82.61
2023-24 82.80 2024* 83.21

Note: *- Until April 2024

Source: Foreign Exchange Dealers’ Association of India

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