India Cement Industry – Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on India Cement Industry – Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to India Cement Industry

Cement is a commodity that is rarely used on its own, rather used in conjunction with sand or gravel to produce concrete, which is what used for construction. Cement is a binder, literally and metaphorically, with it being an extremely important part of our country, so much so that India is the second highest producer of cement in the world, only behind our neighbour, China. In 1982, cement was deregulated in order to attract investments from both domestic and foreign regions. It has done just that, with 98% of today’s capacity lies with the private sector and the rest with the public sector.

Market Dynamics

The real estate and housing sector in one of the key demand driver of cement, accounting for a majority of the total consumption, with public infrastructure and industrial infrastructure taking the rest of the pie. The demand for cement rose at around 8% in the last financial year, the fastest in almost a decade. This shows the high demand for cement in the country. India, a developing country, if it wants to reach the upper echelons of developed nations will have to spend massively infrastructure. The demand for cement should continue to rise steadily partly due to the government’s plan to provide housing to rural areas in the next few years. The introduction of demonetization and GST slowed down the production in 2016 and 2017, but cement manufacturing companies have bounced back to ramp up the production. The north-eastern states, in particular, have tremendous untapped potential that companies are targeting. They usually have less than ideal terrain to carry out infrastructure projects on a bigger scale, but with the advent of new technologies and government’s incentives have provided an impetus to the companies to start thinking of the same. The introduction of Real Estate (Regulation and Development) Act (RERA) brought out in 2016 has slowed down the growth of demand but it is a positive step in that it weeds out the fraudulent developers that mess with the customers that have paid the down payment. The set-up of RERA authority in every state will help in the demand in the long run.

Market Segmentation

In India, cement demand emanates from four key segments Housing, Infrastructure, Commercial & Industrial. The housing and highway projects are particularly lucrative segments that companies target, acquiring many contracts from private players and government alike. Cement itself is divided into more than 20 categories according to established standards depending on the use, whether it is used for flooring, plastering or many other uses. It is also segmented according to properties like compression, tensile strength and other mechanical properties.

Geographic Analysis

The southern states of Andhra Pradesh and Tamil Nadu, along with the northern state of Rajasthan remain the largest cement producing states in the country, with the three states having more than a third of all cement plants. The eastern and the north-eastern region don not much of a presence when it comes to making cement. The reason for the same is that the raw material used to produce namely limestone, gypsum and coal are scarce in the eastern region whereas they are abundant in the three above mentioned states.

Key Players

UltraTech Cement is on the most prominent companies in India. It’s parent organization, Aditya Birla Group, who acquired it from Larsen & Toubro in 2004. UltraTech has an installed capacity of 96.5 million tonnes. This more than a fifth of total capacity India possess. Other major players include Shree Cements, Ambuja Cements, ACC and Ramco.

Major Trade Partners

India is a surplus cement country and hence mostly does exports. Its partners are USA, Iraq, Netherlands and Singapore.

The report contains a comprehensive analysis on:

  • India Rubber Industry Segments
  • India Rubber Industry Drivers, Restraints and Opportunities
  • India Rubber Industry Size & Forecast 2016 to 2023
  • Supply & Demand Value Chain
  • India Rubber Industry Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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