India is the second largest cement market in terms of both, production and consumption. The industry is witnessing robust investment by the existing players such as JSW Cement, Emami Cement etc. “The cement industry is driven majorly by Housing and Infrastructure sector due to factors such as urban housing on softening of interest rates, renewed focus of the government on infrastructure etc.”, as per RNCOS analysis.

“The cement demand is likely to be driven by a pick-up in the housing segment and infrastructure segment - mostly road and irrigation projects” said, Shushmul Maheshwari, CEO – RNCOS. He further added increased allocation to infrastructure projects in union budget 2017-18 will act as a catalyst in the industry.

According to RNCOS, the cement production stood at 283.5 Million Tonnes in FY2016 with an estimated installation capacity of around 400 Million Tonnes. The production and consumption of cement industry in the country is dominated by southern part of India with the largest concentration of plants in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu.

The Indian government is undertaking various initiatives for the development of cement sector in the country. For instance, the government has allocated a budget of INR 3.96 Lakh Crore to the infrastructure sector. Furthermore, adoption of cement instead of bitumen for the construction of all new road projects government has also announced owing to durability and affordability of cement as compared to bitumen.

The year 2016 witnessed the biggest mergers and acquisition deals with Lafarge selling its business to Nirma, Ultra cement acquiring Jaypee group followed by JSW Cement holding around 35% stake in Shiva Cement. However, with the rising presence of small & mid-size cement players, the market concentration of industry leaders is expected to diminish in the future resulting in a more competitive environment.

With more than a decade of experience in cement industry, RNCOS can act as a potential growth partner in all your business endeavors, be it product launching, geographic expansion, sales improvement, distributor/retailer tie-ups etc. We help make your business flourish by studying the market dynamics, collating with you business and devising the right strategies.

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