India is the second largest producer of cement in the world. India's cement industry is a vital part of its economy, providing employment to more than a million people, directly or indirectly.Since it was deregulated in 1982, the Indian cement industry has attracted huge investments, both from Indian as well as foreign investors.
The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption in India. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at 9 per cent. The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country. A total of 210 large cement plants account for a cumulative installed capacity of over 350 million tonnes, with 350 small plants accounting for the rest. Of these 210 large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Performance in 2017
The total installed capacity of cement production was 420 million tonnes as of June 2017. And the domestic consumption of cement is to outpace supply in the next three fiscals, thanks to the rapid infrastructure development of growth of real estate. India’s total cement production capacity is nearly 425 million tonnes, as of September 2017. The growth of cement industry was 6-7 per cent in 2017 because of the government’s focus on infrastructural development. The industry is currently producing 280 MT for meetings its domestic demand and 5 MT for exports requirement. The country's per capita consumption stands at around 225 kg.
The Indian Cement Industry is poised to grow at 5-6 per cent CAGR between FY17 – FY20.