Construction Materials

Cement Industry is amongst eight core industries of India

Indian cement industry is second largest in the world after China and it has evolved to become one of the best in terms of energy efficiency, quality control and environmental improvement. The industry plays a crucial role in the development of the housing and infrastructure sector of the economy. It has strong linkage to other sectors such as infrastructure, construction, housing, transportation, coal, power, steel etc. It plays pivotal role in implementing various government schemes like Housing for All, Smart Cities, Concrete Highways, Dedicated freight Corridors, Clean India Mission, Ultra Mega Power Projects, Waterways etc. Indian Cement industry has also been a strong contributor to employment, fiscal revenue and community development while achieving manufacturing and technological advancement.

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Types of Cements and clinker specification

Installed Cement Capacity

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Karan Sethi

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Reasons to Invest

Government’s infrastructure push along with initiatives like Housing for All, Smart Cities Mission and Swachh Bharat Abhiyan is going to boost demand for building material including cement.

India’s cement production is expected to reach 58.5 Bn Tonnes by 2030.

Cement consumption in India is around 220-250 kg per capita against a global average of 500-550 kg per capita, which shows significant potential for the growth of the industry.

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"100 % FDI through automatic route is allowed in construction-development projects (which would include development of townships, construction of residential/commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, townships) 100% FDI is allowed under the automatic route for urban infrastructure areas like urban transport, water supply, sewerage and sewage treatment "

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Cement Industry Scenario

Cement is one of the most technologically advanced industries in the country. The modern Indian Cement plants are
state-of-the-art plants and are comparable to the best in the world.

AMRUT and Smart Cities Mission

7,188 Projects completed for Urban Rejuvenation Mission: AMRUT and Smart Cities Mission in the Union Budget.

Union Budget 2023-24, announcements leading to increase in the demand of cement

PM Awas Yojana expenditure increased by 66% to INR 79,000 Cr.
Railways will receive a capital outlay of INR 2.4 Lakh Cr, the highest allocation ever since 2013–14.
Public agencies will use the Urban Infrastructure Development Fund (UIDF), which will be administered by the national Housing Bank, to build urban infrastructure in Tier 2 and Tier 3 cities. The UIDF will be established through the use of the priority Sector Lending shortfall.
Investments totaling INR 75,000 Cr (INR 15,000 Cr from private sources) will be made in 100 vital transportation infrastructure projects to provide last and first mile connectivity for the coal, ports, food grain, steel, and fertiliser grains sectors.
Government will establish an Urban Infrastructure Development Fund, similar to the Rural Infrastructure Development Fund, which will be run by NHB.
A one-year extension of the 50-year interest-free loan to state governments in order to encourage them to adopt complementary policies and encourage infrastructure investment.

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Cement

The Indian Cement Industry has managed to keep pace with the global technological advancement. The induction of advanced technology has helped the industry immensely to improve its efficiency by conserving energy, fuel and addressing the environmental concerns.

Cement production in India is expected to increase by ~12% YoY, driven by rural housing demand and government's strong focus on infrastructure development like PM Gati Shakti . The industry is expected to add ~80 Mn Tonne capacity by 2025.

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