The Flourishing Market of Cement and Concrete Industry
There has been a growth in the demand for construction material globally due to rapid urbanization. The major derivatives if this growth is from new housing. Moreover, restoration projects are always seen to have a positive impact on both public and private restoration efforts growing. The key driver which is expected to fuel the demand is technological advancement.
India ranks second on the largest producer of cement worldwide. Hence, India’s cement industry also plays a vital role in its economy, by employing more than a million people, be it directly or indirectly. From long back the industry has been attracted by huge investments both from India and foreign investors. India holds a lot of potential in the infrastructure and construction sector and the cement sector is anticipated to largely benefit from this. A few of the current initiatives, like the development of 98 smart cities, are anticipated to show a major boost to the sector. The Indian cement industry has some big multinational investors, such as Holcim and Lafarge which have interests such as ACC, Ambuja Cement, and Lafarge Birla Cement, the Indian cement industry is widely homegrown. Ultratech cement, which is regarded as the country’s largest firm in terms of cement capacity, accounts for approx. 22% of the domestic market, with ACC and Ambuja, having 15% and 13% shares respectively.
The Market Size of the Cement Industry
The production of cement reached 334.48 million tons in 2019. The capacity of cement production is anticipated to reach 550 million tons by the year 2023. The cement sale in India stands at US $8.29 billion in the year 2018. The industry is dominated by a few companies. The 20 top cement companies hold approx. 70% of the total cement production in the country. The total of 210 large cement plants holds an almost cumulative installed capacity of almost 410 million tons, with 350 small plants holding for the rest. From these 210 large cement plants, 77 of them are in Andhra Pradesh, Rajasthan, and Tamil Nadu. The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 percent of the total cement production in the country. A total of 210 large cement plants account for a cumulative installed capacity of over 410 MT, with 350 small plants accounting for the rest. Of these 210 large cement plants, 77 are in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu. The export of India’s cement, clinker, and asbestos reached a CAGR of 6.44 % between the years 2016-2018. In the year 2020, in Jan it reached the US $ 1.66 billion.
Forecasted Growth of the Cement in India
The eastern states of India are probably to be the newer and virgin markets for cement companies and can contribute to their bottom line in the future. In the next 19 years, India is expected to become the main exporter of clinker and gray cement for the Middle East, Africa, and other developing nations of the world. The cement plants that are near the ports such as the plants in Gujarat and Visakhapatnam, will be having an added advantage for export and will logistically be well-armed to face the tough competition from cement plants in the interior of the country. The capacity of cement production is anticipated to reach 550 million tons by the year 2025.
Conclusion
Concrete, Cement, and Cement-based Products project report by NPCS that gives a detailed overview of the cement and concrete industry. The project report covers all the major aspects of analyzing the market, confirming the availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. India and from worldwide the engineers, project consultant & industrial consultancy firms have benefited from the project report to analyze the market.
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