Cement Industry Production & Consumption

At present, the Installed Capacity of Cement in India is 500 MTPA with

production of 298 Million Tonnes per annum. Majority of the cement plants
installed capacity (about 35%) is located in the states of south India. In PAT
scheme, Total Installed Capacity of Cement in India is 325 MTPA which
contributes to 65% coverage of total installed capacity in India.

The per capita consumption of cement in India is 195 kg which is far less than
world average of 500 kg and 1000 kg of China.

The cement industry comprises of 156 large cement plants with an installed
capacity of 233.94 million tonnes and more than 350 operating mini cement
plants with an estimated capacity of 11.10 million tonnes per annum, make a
total installed capacity of 245.04 million tonnes as on 31-12-2009. There are a
few large cement plants that are owned by the Central and the State
Governments.

 Stats of Large Cement Plants and Industry in General Companies – 46

 Cement Plants (Nos.) – 156
 Installed Capacity (Mn.t) – 233.94
 Cement Production Installed Capacity (Mn. t.) – 233.94
 Cement Production (Mn. t.) 2008-09 – 187.6
 Plants with Capacity of 1 Million ton and above (Nos.) –95
 Manpower Employed (Nos.) Approx. (One Mn.T cement generates
downstream employment to 50,000 persons) – 1,40,000
 Turnover in 2008 (Mn. US$) around – 18

Cement production during the year 2009-2010 (April, 2009 to December, 2009)
has been 150.12 million tonnes registering a growth of 10.52 per cent over
corresponding period of 2008-09. India exported 3.42 million tonnes of cement
and clinker during April, 2009 – December, 2009.

The buoyant demand and improved profitability in this sector are conducive to
the growth of industry. The industry is planning capacity addition of
approximately 100 million tonnes during the 11th Five Year Plan. (Department
of Industrial Policy & Promotion)
Market Segments: Cement industry in India can be divided into the five
geographical zones of India -- North, South, East, West and Central based on
location as mentioned below:-

1] East Zone 49.4 MTPA

2] West Zone 57.6 MTPA

3] North Zone 85.6 MTPA

4] South Zone 132.7 MTPA

5] Central Zone 52.8 MTPA

Cement Clusters there are 7 cement clusters in India are as follows:-

 Satna (Madhya Pradesh),

 Chandrapur (North Andhra Pradesh and Maharashtra)
 Gulbarga (North Karnataka and East AP),
 Chanderia (South Rajasthan + Jawad & Neemuch in MP),
 Bilaspur (Chattisgarh),
 Yerraguntla (South AP),
 Nalgonda (Central AP).

With a total capacity of 75.23 mtpa they together account for 49% of the total
installed capacity of India.

Leading producer & Consumer States Andhra Pradesh, Rajasthan, Karnataka,

Madhya Pradesh, Gujarat and Kerela are largest cement producing states in
India. Maharashtra is largest consumer state of Cement. Andhra Pradesh with a
production of 37.52 million tons in 2008-09 which is 15.89% of all India
Production.
 New Cement Plants

Twenty one new cement plants will be set up in Madhya Pradesh. 18 Big
industrial groups like Aditya Birla Group, Ambuja Cement, Dalmia Cement,
Imami Cement and Essar Cements Ltd etc will invest 25,726 crore for setting up
21 new cement plants. Around 25,000 people are expected to get direct and
indirect employment from these cement plants.

These cement plants will come up in nine districts - Satna, Rewa, Panna,
Damoh, Sagar, Dhar, Mandsaur, Katni and Jabalpur.

 The Global Investors’ Summit-II held at Khajuraho in October this year

signed the maximum number of MoUs, 49 in the mining sector. Out of
this 21 MoUs were signed for setting up cement plants.The biggest
agreement was signed with Ultratec Company of Aditya Birla Group. The
company will invest a total 6000 crore to establish three cement plants in
two districts. The company has signed agreement for setting up one
cement plant in Dhar district at an investment of 1600 crore and two in
Satna district. The company will invest 4400 crore for the two cement
plants to be set up in Satna district.
 The Jayprakash Associates will invest 1000 crore to set up one cement
plant in Satna district and another cement plant in Sagar district with an
investment of 200 crore.
 Agreements have been signed to establish maximum nine cement plants
in Satna district. The remaining six cement plants will be set up by Surya
Global Cement Ltd, with an investment of 2690 crore, Essar Cements
Ltd, with an investment of 2,100 crore, Dalmia Cement with an
investment of 2000 crore, Imami Cement with an investment of 1750
crore, AV Mines with an investment of 301 crore, and Sainath Ventures
Pvt Ltd with an investment of 300 crore.
 The Visa Cement Ltd, and Bundelkhand Resources Pvt Ltd, will set up
one cement plant each in Rewa district.
 Four companies have signed the agreement to establish one cement plant
each in Panna district.According to the agreement, the Sunflag
Infrastructure will set up one cement plant with an investment of 833
crore, Khajuraho Cement with an investment of 430 crore, Response
Merchant Pvt. Ltd with an investment of ’400 crore and MB Ispat
Corporation with an investment of 400 crore.
 Apart from this, RMG Super Conductors will invest 1500 crore to set up
cement plant in Katni district, Delbi Mining and Power Pvt Ltd will
invest 1230 crore to set up cement plant in Damoh district and Ambuja
Cement will invest 300 crore for setting up a cement plant in Mandsaur
district. Pioneer Cement Industries Ltd will invest 1500 crore to set up a
cement plant either in Jabalpur or in Panna district.Published by HT
Syndication with permission from Pioneer.

 Reliance Cement Company Private Limited (RCC), a subsidiary of

Reliance Infrastructure Limited (RInfra), began production on 17
September 2012 at its first cement manufacturing plant at Butibori,
Nagpur (Maharashtra). This unit will mainly service the Vidarbha market
in eastern Maharashtra. This is one of two 5 million tpa plants that the
company has been working on, the other being located in Madhya
Pradesh and soon to open itself. Both are fed by a satellite-network of
grinding plants. The company plans to use these two technologically
state-of-the-art plants as a foundation for its future projects, and will also
leverage best practices in logistics, distribution and last mile selling.