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Cement Industry Market Leader In North!

By Author: Mohanprajapat
Total Articles: 7

The cement industry being a bulk commodity is a freight intensive industry and transporting it over long distances can prove to be uneconomical. This has occasioned in cement being essentially a regional play with the industry divided into five main regions viz. north, south, west, east and the central region. The highest installed capacity in the Southern region of India accounts for about one-third of the country's total mounted cement capacity.

Cement demand is thoroughly linked to the overall economic growth, predominantly the housing and infrastructure sector. If the rate of evolution of consumption remains low at 5-6%, the existing capacity would be adequate to meet the cement demand for the next few years. There are numerous top cement companies in India.

Higher government expenditure on infrastructure and housing, and rising per capita incomes will be key progress drivers for the cement industry. There have also been optimistic moves on the policy anterior, in areas related to ease of doing business, promoting start-ups, rationalising the tax structure and administration, and opening up additional areas for extraneous investment through the involuntary route. The government is substantially stepping up infrastructure outlay with the best cement in India.

As per Crisil Report, Cement demand is expected to increase by 5.0-5.5% y-o-y in FY18 on the back of increased spends on roads and railways, push towards affordable housing by the central government, the materialization of pent-up demand, particularly in rural housing and low base.

Over a five-year period, cement demand is expected to increase at 6-7% CAGR, led by a revival in government spending in the housing (especially affordable housing), a marginal uptick in private housing, and fast growth in infrastructure spend (especially urban infrastructure, road, and irrigation). At the regional level, eastern states followed by central and north regions would see healthier growth in demand over a low base as the state governments sharpen the focus on development.

The cement prices in India account for 410 million tonnes of installed capacity in the country for a total of 210 large cement plants, while 350 mini cement plants make up the rest.

In India there are 77 cements plants out of the total of 210 large cement plants which are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. For the year of 2017-18 the cement production in India is increased from 230.49 million tonnes in the year 2011-12 to 297.56 million tonnes. India’s exports increased at CAGR of 10.37 per cent between FY12-FY18 to reach US$ 433.87 million for the cement, clinker and asbestos cement.

From a long-term point of view, overall pick-up observed in the infrastructure spending by the Government and a downward trend in the interest rates is expected to revive the demand across sectors. The 7th Pay Commission is predictable to aid in housing demand. Government thrust on affordable housing for realizing its vision of “Housing for All” by 2022 and Smart City program should also help in demand growth for cement. The proportion of new capacity trappings has also slowed down considerably. Therefore, the viewpoint for the cement segment looks healthier.

About author

For the past 3 years I have been writing informative and high quality articles on cement industry leader in North. In the above article have covered topics such as top cement companies in India,best cement in India

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