Cement Industry in India

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Cement is primarily used as stucco for buildings in wet climates, as mortar for applications adjoining to seawater and developing for powerful concrete. Cement collects all the material and is characterised as either non-hydraulic or hydraulic. Hydraulic cements are made of silicates and oxides that can set and harden in case they are exposed to water India is the second-largest cement producer in the world after China, with a total capacity of 340 million metric tons (latest 2020 record). With the government of India offering a boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years, which is quite evident as India had a capacity of 210 million metric tons in 2015 in regards to five years down the line.

The cement industry in India is dominated by nearly 20 companies, which account for almost 70% of the total cement production in India. The cement production in India is projected to reach 381 MT by FY22. The country has top quality lime deposits across, which would benefit the growth.

The Department for Promotion of Industry and Internal Trade (DPIIT) released the data stating that cement and gypsum products lured Foreign Direct Investment (FDI) worth US$ 5.28 billion between April 2000 and September 2020. India’s cement production in February 2021 rose by 7.8% compared to February 2020.

An Overview of Cement Industry

The history of the cement industry in India dates back to 1889, when a Kolkata-based company started manufacturing cement from Argillaceous. Still, the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. World War I gave the first initial thrust to the cement industry in India, and the industry started growing at a fast rate in terms of production, manufacturing units and installed capacity. This stage was referred to as the Nascent Stage of the Indian Cement Company. In 1927, the Concrete Association of India was set up to create public awareness on the utility of cement and propagate cement consumption.

The cement industry in India saw the price and distribution control system in 1956, established to ensure a fair price model for consumers and manufacturers. Later in 1977, the government authorized new manufacturing units (and existing units going for capacity enhancement) to put a higher price tag for their products. A couple of years later, the government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low-cost plants.

Cement Company, in any country, plays a major role in the growth of the nation. The cement Industry in India was under complete control and supervision of the government. However, it got relief to a large extent after the economic reform, but with the government interference, especially in the pricing, it still exists in India. Despite being the second-largest cement producer in the India falls in the list of lowest per capita consumption of cement with 125 kg. These are the poor rural people who mostly live in mud huts and cannot afford the commodity. Despite the fact, the demand and supply of cement in India has accelerated. In a fast-developing economy like India, there is always a huge possibility of expanding the cement industry.

Technology Up-gradation

The cement industry in India is going through a technological change as many up gradations and Assimilation is taking place. Almost 93% of the total capacity is based entirely on the modern dry process, which is considered more environment-friendly. Only the rest, 7%, uses old wet and semi-dry process technology. There is also a vast scope of waste heat recovery in the cement plants, reducing the emission level and improving the environment.

Major Players in Indian Cement Industry

Several players are prevailing in the cement industry in India. However, around 20 big names account for more than 70% of the total cement production in India. The total installed capacity is distributed over around 129 plants owned by 54 major companies across the nation.

Mergers and Acquisitions in Cement Industry in India

  • UltraTech Cement purchased 3B Binani Glass Fibre Sarl Luxembourg, a subsidiary of Binani Industries in March 2021

  • World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset

  • Management Fund have together acquired 7.5% of India Cements (ICL) for US$ 124.91 million

  • IBM partnered with Shree Cement in February 2021 to operate their database and critical business applications using AIX and Red Hat on IBM POWER9-based IBM Power Systems.

  • ACC released the expansion plan of its grinding unit in Tikaria with a 1.6 MTPA cement capacity in April 2021
  • Cimpor, a Cement company of Portugal, has bought a 53.63% stake that Grasim Industries had in Shree Digvijay Cement.

  • French cement company Vicat SA bought a 6.67% share of Sagar Cement for US$ 14.35 million.

  • Holcim now holds a 56% stake in Ambuja Cement. Previously, it had 22% of the stake. The company

  • utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that.

  • Dalmia Cement issued a capacity addition of 2.3 MTPA at its Bengal Cement Works (BCW) unit in West Midnapore with Rs 360 crores (US$ 49.47 million) investment in December,2020.

Cement clusters in India

  • Rajasthan
  • Tamil Nadu
  • Andhra Pradesh
  • Chhattisgarh
  • Madhya Pradesh
  • Orissa

Top Cement Companies in India

  • Shree Cements
  • HIL
  • J.K cement
  • Sagar cement
  • Sahyadri Ind
  • Mangalam cement
  • India cements
  • Ambuja cements
  • Orient cements
  • KC
  • JK Lakshmi cement
  • Shree Digvijay
  • Dalmia Bharat
  • Niraj cement

Map Showing Indian Cement Plant Locations

Cement Industry in India
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Last Updated on August 03, 2021