MARKET STRUCTURE

IN INDIAN CEMENT
INDUSTRY

SUBMITTED TO DR. B. VENKATRAJA

SUBMITTED BY: GROUP- 5

KATTAMURI V N S JAYARAJYALAKSHMI 19025
S KEERTHANA 19026
M KISHOR 19027
PRERNA KUKSAL 19028
SHIRISH VAMAN NAYAK 19029
MENA SURESH 19030
INTRODUCTION:
India is the second largest producer of cement in the world. No wonder, India's cement
industry is a vital part of its economy, providing employment to more than a million people,
directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has
attracted huge investments, both from Indian as well as foreign investors. India has a lot of
potential for development in the infrastructure and construction sector and the cement sector
is expected to largely benefit from it. Some of the recent major initiatives such as
development of 98 smart cities are expected to provide a major boost to the sector. Expecting
such developments in the country and aided by suitable government foreign policies, several
foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the
country in the recent past. A significant factor which aids the growth of this sector is the
ready availability of the raw materials for making cement, such as limestone and coal.

Market Size
Cement production capacity stood at 502 million tonnes per year (mtpy) in 2018. Capacity
addition of 20 million tonnes per annum (MTPA) is expected in FY19- FY 21. 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 410 million tonnes, 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.

Investments
According to data released by the Department of Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 5.28
billion between April 2000 and March 2018.
Some of the major investments in Indian cement industry are as follows:

 As of December 2018, Raysut Cement Company is planning to invest US$ 700

million in India by 2022.
 During 2017-18, Ultratech commissioned a greenfield clinker plant with a capacity of
2.5 MTPA and a cement grinding facility with 1.75 MTPA capacity in Dhar, Madhya
Pradesh. The company is expecting to complete a 1.75 MTPA cement grinding
facility and a 13 MW waste heat recovery system by September 2018 at the same
location.
 JK Cement is planning to invest Rs 1,500 crore (US$ 231.7 million) over the next 3 to
4 years to increase its production capacity at its Mangrol plant from 10.5 MTPA to 14
MTPA.

Government Initiatives
In order to help the private sector companies, thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent
past are as follows:
In Budget 2018-19, Government of India announced setting up of an Affordable Housing
Fund of Rs 25,000 crore (US$ 3.86 billion) under the National Housing Bank (NHB) which
will be utilised for easing credit to homebuyers. The move is expected to boost the demand of
cement from the housing segment.
Road Ahead
The eastern states of India are likely to be the newer and virgin markets for cement
companies and could contribute to their bottom line in future. In the next 10 years, India
could become the main exporter of clinker and grey cement to the Middle East, Africa, and
other developing nations of the world. Cement plants near the ports, for instance the plants in
Gujarat and Visakhapatnam, will have an added advantage for exports and will logistically be
well armed to face stiff competition from cement plants in the interior of the country.
Cement-June-2019
Due to the increasing demand in various sectors such as housing, commercial construction
and industrial construction, cement industry is expected to reach 550-600 Million Tonnes Per
Annum (MTPA) by the year 2025.Many foreign players are also expected to enter the cement
sector, owing to the profit margins and steady demand.
With 502 million tonnes per year (mtpa) of cement production capacity as of 2018, India is
the second largest cement producer in the world. The cement production capacity is estimated
to touch 550 MT by 2020. Of the total capacity, 98 per cent lies with the private sector and
the rest with the public sector. The top 20 companies account for around 70 per cent of the
total production.
A total of 210 large cement plants together account for 410 million tonnes of installed
capacity in the country, while 350 mini cement plants make up the rest. Of the total 210 large
cement plants in India, 77 are in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Cement production in India increased from 230.49 million tonnes in 2011-12 to 297.56
million tonnes in 2017-18. India’s exports of cement, clinker and asbestos cement increased
at CAGR of 10.54 per cent between FY12-FY19 to reach US$ 484.24 million. During the
same period imports of cement, clinker and asbestos cement stood at a CAGR of 7.99 per
cent to US$ 158.49 million in FY19.
TOP CEMENT COMPANIES:
The Government of India is strongly focused on infrastructure development to boost
economic growth and is aiming for 100 smart cities. The government also intends to expand
the capacity of the railways and the facilities for handling and storage to ease the
transportation of cement and reduce transportation costs. These measures would lead to
increased construction activity thereby boosting cement demand. The cement industry is very
prominent in India. Basically, the industry comes under the large-scale industry segment.
Globally, India is the second largest cement producing country. Here in this article, we intend
to craft a list of the top 10 largest cement companies in India. The cement industry in our
country has a pivotal role in the overall growth of the economy. Apart from contributing
GDP, the industry provides employment opportunity for the millions of job seekers.
The real estate, construction, and infrastructure sectors are booming in India. Additionally,
the government initiatives of the development of 98 smart cities are expected to provide a
major boost to the sector. Basically, the housing sector is the biggest demand driver of
cement. The sector accounts for about 67% of the total consumption in India. The other major
consumers of cement include infrastructure at 13%, commercial construction at 11% and
industrial construction at 9%. As far as the production is concerned, the industry is growing
at 5 to 6 %. However, the industry is highly dominated by a few large companies.
Interestingly, the top 10 cement companies account for the more than 50% of the total cement
production in India.
TOP PLAYERS IN CEMENT INDUSTRY:
1. UltraTech Cement:
 UltraTech Cement is India’s largest and amongst the World’s top cement
manufacturers. The company has the presence in five countries. The total operation
includes 11 integrated plants, one white cement plant, one clinkerisation plant, 15
grinding units, two rail and three coastal terminals, and 101 ready mix concrete
(RMC) plants. Additionally, the company is the largest clinker exporter in India.
Establishment: 1987
Headquarter: Mumbai
Website: https://www.ultratechcement.com/
2. Shree Cements
Shree Cements is a trusted brand in India, mainly in the northern and eastern part of the
country. Currently, the company has the manufacturing operations over North and Eastern
India across six states. Additionally, the company is popular as one of the most efficient and
environment-friendly companies in the global cement industry.
Establishment: 1970
Headquarter: Bangur Nagar, Ajmer, Rajasthan
Website: http://shreecement.in/
3. Ambuja Cements
Ambuja Cements is one of the most popular brands in western India. The company was
formerly known as Gujarat Ambuja Cement Limited. Basically, it is a major cement
producing company in India. Now, the company is a part of the global conglomerate
LafargeHolcim. Currently, Ambuja Cement has a cement capacity of 29.65 million tons with
five integrated cement manufacturing plants and eight cement grinding units across the
country.
Establishment: 1983
Headquarter: Mumbai
Website: http://www.ambujacement.com/
4. ACC
ACC Limited is India’s one of the largest manufacturers of cement and ready-mixed
concrete. The company has 17 modern cement factories and more than 50 ready mixed
concrete plants. ACC has a unique track record of innovative research, product development,
and specialized consultancy services. Basically, ACC is the first cement company in the
country to start Bulk Cement, especially for large consumers.
Establishment: 1936
Headquarter: Mumbai, Maharashtra
Website: http://www.acclimited.com/