The Indian cement sector is the second largest in the world after China, as it is home to over 7% of total global installed capacity. In FY22, India’s overall cement production capacity was over 545 million tonnes (MT). The sector is fragmented, with around 365 small and medium scale cement plants accounting for 97% of the total installed capacity. The top 10 large scale cement companies in India account for more than 60% of the total installed capacity. The industry is highly capital intensive, with a high proportion of fixed assets such as land and buildings.

The cement sector is currently undergoing a consolidation phase, with some of the leading players in the industry merging or acquiring other companies to expand their geographical reach or product portfolio. At the same time, cement consumption in India has shown strong growth over the past few years, mainly because of the robust growth in the housing and construction sector. The demand for cement will continue growing in the future, supported by the government’s focus on infrastructure development and housing.

As per estimates, the cement industry production is expected to grow by 12% in the coming five years to meet the rising demand of different sectors, i.e., housing, commercial construction, and industrial construction. This means that more cement plants will be set up across the nation, which will help generate employment and business opportunity for other industrial players.