INDIAN CEMENT INDUSTRY AT A GLANCE IN 2022 - 2023 India is the second-largest producer of cement in the world, and accounts for about 8% of the global installed capacity. Currently, the installed cement capacity in India is 553 MTPA with a production of 298 MTPA.
And the Indian cement industry is likely to add about 80 million tonnes (MT) capacity by FY24.
• Rapid growth in the constructions and infrastructure areas.
• Rising rural and urban housing demand
• Expansion of industries
• Increase in population
• Rise of disposable income of the masses
• Huge limestone deposits
Market sizeIndia has a total of 210 large cement plants, of which 77 are in Andhra Pradesh, Rajasthan, and Tamil Nadu. Nearly 32% of India's cement production capacity is based in South India, 20% in North India, 13% in Central, 15% in West India, and the remaining 20% is based in East India. India's cement production is expected to increase at a CAGR of 5.65% between FY16-22, driven by demands in roads, urban infrastructure and commercial real estate. India's cement production was between 380-390 million tonnes in FY23, a growth rate of 8- 9% from the previous fiscal.
Between FY12 and FY23, the installed capacity grew by 61% to 570 MT from 353 in FY22. The Indian cement sector's capacity is expected to expand at a compound annual growth rate (CAGR) of 4-5% over the four-year period up to the end of the FY27. The consumption of cement in India is expected to grow at a CAGR of 5.68% from FY16 to FY22. As per Crisil Ratings, the Indian cement industry is likely to add around 80 million tonnes (MT) capacity by FY24.
Industry InvestmentsFDI inflows in the Indian Cement industry, related to the manufacturing of cement and gypsum products, reached US$ 5.49 billion by the end of 2022.
The Union Government approved an outlay of US$ 32.57 billion (Rs. 2.7 lakh crore) for the Ministry of Road Transport and Highways which is likely to boost demand for cement.
