The Indian cement industry with a total capacity of about190 m tonnes in financial year-2008 is the second largest market afterChina. Despite the fact that the Indian cement industry has clockedproduction of more than 100 m tonnes for the last five years, registering anaverage growth of nearly 9%, the per capita consumption of around 150 kgscompares poorly with the world average of over 260 kgs and more than 450kgs in China. This, more than anything underlines the tremendous scope forgrowth in the Indian cement industry in the long term .Althoughconsolidation has taken place in the Indian cement industry with the top fiveplayers controlling almost 50% of the capacity, the balance capacity stillremains pretty fragmented.Cement, being a bulk commodity, is a freightintensive industry and transporting cement over long distances can prove tobe uneconomical. This has resulted in cement being largely a regional playwith the industry divided into five main regions viz. north, south, west, eastand the central region.