With the expected huge demand in the Asian countries the futureIndia being a convenient country for the export oriented activities andwith the cheaper labour there are many cement Companies enteringIndia.Cement is preferred as building material in India. It is usedextensively in house hold and industrial construction. Earliergovernment sector used to consume 50% of the cement sold in India,but in the last decade it share has come down to 35% rural areasconsume less 23% of the total cement. Availability of cheaper buildingmaterial for the nonpermanent structure affects the rural demand. The budget gave substantial incentives to private sectorconstruction companies. Ongoing liberalization will lead to an increasein industrial activities and infrastructure development so it is hopedthat Indian cement industry shall boom again in near future. TheNational highway Act to allow private toll collection and identifiedprojects, bridge, expressways for private construction.
Cement being a commodity item has low margins and its bulkynature ensures that the supply is determined by the economicaltransportation distance, this led to the formation of regional markets,Western, Northern, Southern and eastern. And the concentration of limestone deposits in a few states has a led to the concentration of limestone the formation of cement plant clusters at seven locations.Having surpassed the period of shortage and achieving high growtharte in capacity, implying springing up many plants, the industry isgetting competitive. Hence the necessary and need for coordinatedmarketing efforts.