Cement Manufacturers In India [Top Companies]

India is the world's second-largest cement producer; also, cement manufacturers in India possess a substantial market share. It accounts for more than 7% of the world's installed capacity. The cement industry is expected to benefit significantly from India's significant development potential in the infrastructure and construction sectors. Some recent initiatives, such as the establishment of 98 smart cities, are expected to significantly boost the sector. The easy availability of raw materials for cement production, such as limestone and coal, is a significant factor contributing to the sector's growth.

Cement output was 329 million tonnes (MT) in FY20 and is expected to rise to 381 MT by FY22. Consumption, on the other hand, stood at 327 MT in FY20 and is expected to rise to 379 MT by FY22. Cement production capacity is expected to reach 550 MT by 2020. The cement industry in India has enormous growth potential because the country has a large quantity and quality of limestone deposits all over the country.

Cement production in India is expected to increase by 12% year on year in FY22, owing to increased demand for rural housing and the government's strong emphasis on infrastructure development. Due to increased spending on housing and infrastructure, the Indian cement industry is expected to add 80 million tonnes (MT) capacity by FY24, the most in ten years.

Increased infrastructure spending (34.9% for roads, 8.7% for metros, and 33.6% for railways) is expected to boost cement demand in FY22 budget estimates over FY21 estimates.

India's cement industry is experiencing increased demand. According to the company, key players include ACC, Dalmia, and Ultratech Cement. Indian cement companies reported a sharp rebound in earnings in the second quarter of FY21, and demand for the industry increased, driven by rural recovery. As rural markets have normalised, the demand outlook has remained positive. CLSA expects its cement coverage stocks' EBITDA to increase 14% year on year in FY21.

Investments and Developments in Cement Manufacturers in India

• Ambuja Cement will open the 'Concrete Futures Laboratory', a one-stop shop for aspiring professionals to test, learn, and experience various aspects of cement and concrete.
• Ramco Cement intends to invest an additional Rs. 601.2 crore (US$ 80.8 million) in cement plant upgrades beginning in August 2021, with completion scheduled for March 2022. The company had invested Rs. 401 crore (US$ 53.9) in upgrades by April 2021.
• UltraTech Cement announced plans to increase cement capacity by 19.8 MTPA between 2022 and 2023 in August 2021. When the Rs. 6,510 crore (US$ 875 million) project is completed, capacity will be increased to 136.3 MTPA.
• Shree Cement announced three projects worth Rs. 4,806 crore (US$ 646 million) in September 2021.
• Ambuja Cement announced in August 2021 that it would invest Rs. 310 crore (US$ 41.82 million) to expand manufacturing capacity at its Ropar Unit in Punjab in order to meet rising manufacturing demand for housing construction and public infrastructure development. The expansion project is expected to be completed in June 2023.
• In July 2021, Ramco Cements will introduce Ramco Super Plaster, a plastering solution for brickwork and plastering applications.
• In July 2021, Vedanta's aluminium unit announced that it had invited bids from cement manufacturers such as JK Cement, ACC, and UltraTech Cement to form alliances to produce low-carbon cement using fly ash, a byproduct.
• By July 2021, Ramco Cements plans to invest US$ 64 million in capacity expansion and modernisation activities at its Tamil Nadu plant unit.
• In July 2021, Dalmia Bharat Ltd. announced plans to increase its production capacity to 110-130 million tonnes per year by 2031.
• JSW Cement agreed in July 2021 to raise Rs. 1,500 crore (US$ 202.35 million) in investment funds and increase its production capacity to 25 million tonnes from 14 million tonnes with Synergy Metals Investments Holding Ltd. and Apollo Global Management Inc.
• Ramco Cements Limited expects Line III of its Jayanthipuram Plant to be operational in June 2021, with a clinker capacity of 1.50 million tonnes per year.
• In June 2021, JSW Cement will enter the construction chemical business, launching an exclusive green product line.
• IBM announced a collaboration with Shree Cement in February 2021 to run their database and core business applications on IBM POWER9-based IBM Power Systems running AIX and Red Hat. As a result of the implementation, Shree Cement will be able to increase productivity and improve supply chain efficiencies across its manufacturing plants.

The company announced a US$137 million investment in January 2021 to increase the production capacity of its integrated cement plant in Guwahati, Assam, by 2 MTPA. The project is scheduled to be completed in the middle of 2023.

• ACC announced an April 2021 expansion plan for its Tikaria grinding unit, which will have a 1.6 MTPA cement capacity.
• ACC opened its new grinding unit in Sindri, Jharkhand's Dhanbad district, in January 2021, adding 1.4 million tonnes per annum to the existing 3 MTPA unit.

Government Initiatives for Cement Manufacturers in India

• In July 2021, the government established a cement industry council of 25 members (including UltraTech Cement MD Mr K C Jhanwar and Dalmia Bharat Group CMD Mr Puneet Dalmia) to reduce waste, maximise production, improve quality, lower costs, and encourage product standardisation.
• The Government of India extended benefits under Section 80-IBA of the Income Tax Act until March 31, 2021, in the Union Budget 2021-22, in order to promote affordable rental housing in India.
• In the Union Budget 2021-22, the government approved an outlay of Rs. 1,18,101 crore (US$ 16.22 billion) for the Ministry of Road Transport and Highways, which is expected to boost cement demand.
• According to the Union Budget 2021-22, the National Infrastructure Pipeline (NIP) has been expanded from 6,835 to 7,400 projects.
• The Union Budget allocated Rs. 13,750 crore (US$ 1.88 billion) to the Urban Rejuvenation Mission: AMRUT and Smart Cities Mission, Rs. 12,294 crores (US$ 1.68 billion) to the Swachh Bharat Mission, and Rs. 27,500 crore (US$ 3.77 billion) to the Pradhan Mantri Awas Yojana.

Top Cement Manufacturers in India

Conclusion

According to the Cement Manufacturers in India, the cement industry is expected to reach 550-600 million tonnes per annum (MTPA) by 2025, owing to increased demand in various sectors such as housing, commercial construction, and industrial construction. For any amount of taxable profit, business owners are burdened with excessive financial accounting. OkCredit is a financial accounting service that provides a variety of business-specific services that allow you to focus on your business's growth while OkCredit takes care of your financial problems.

Also Read:
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3) Battery Manufacturers In India
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5) Solar Panel Manufacturers In India
6) Plywood Manufacturers In India

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FAQs

Q. Which state is the largest producer of cement in India?

Ans. Madhya Pradesh is India's largest cement producer, with 23 cement plants. Andhra Pradesh comes in second and Rajasthan comes in third, with 19 and 15 plants, respectively.

Q. Which city is known for its cement industry?

Ans. Kota in Rajasthan is known for its cement plants.

Q. How many cement plants are there in India?

Ans. The country has 210 large cement plants with a total installed capacity of 410 MT and 350 mini cement plants. There are 77 large cement plants in India, with the majority located in Andhra Pradesh, Rajasthan, and Tamil Nadu.

Q. Which is the biggest cement factory in India?

Ans. The Wadi cement plant of ACC Limited in India's southern state of Karnataka is now the world's largest cement plant.

Q. How much cement is manufactured in India?

Ans. India currently has 500 MTPA installed cement capacity, with a production capacity of 298 Mt/yr.