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CEMENT INDUSTRY

.INTRODUCTION  . India's cement production has increased at a compound annual growth rate (CAGR) of 9.7 per cent to reach 272 million tonnes (MT) during FY 06-13.  India is the second largest producer of cement in the world with a current capacity of around 370 MT which is expected to grow to 550 MT by FY 2013.

Indian engineers are working in the Himalayas to build the world's highest railway bridge which is expected to be 35 meters taller than the Eiffel Tower when completed in 2016. . Example: . Example: .OPPORTUNITIES   Foreign companies are looking for investing in the Indian cement industry to cash in on the opportunities in this market.Holcim Ltd and Lafarge SA Notable infrastructural projects already coming up in the country.

south. as per 'Indian Cement Industry Outlook 2016'. Other major consumers of cement include infrastructure at 13 per cent. accounting for about one-third of the country's total installed cement capacity. west. viz. The southern region of India has the highest installed capacity. Demand set to increase at a CAGR of more than 8 per cent during FY 14-16. The cement industry in India is divided into five regions. commercial construction at 11 per cent and industrial construction at 9 per cent. east and the central region. north. accounting for about 67 per cent of the total consumption. The housing sector is the biggest demand driver of cement.MARKET SIZE      . .

546. plans to invest Rs 802 crore (US$ 132.23 billion) between April 2000 and June 2014. part of the Holcim Group.47 crore (US$ 2. cement and gypsum products attracted foreign direct investment (FDI) worth Rs 13. . India Cements Ltd plans to merge with its subsidiary Trinetra Cements Ltd. Ambuja Cement.INVESTMENTS    Department of Industrial Policy and Promotion (DIPP).57 million) in 2014 in various ongoing projects.

.a State Government Company. Limited (NREDCAP) . for the promotion of biogas plants in Kadapa district.  Dalmia Bharat Group Foundation (DBGF) has partnered with New and Renewable Energy Development Corporation of Andhra Pradesh.CONTD.

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WORLD WIDE LEADERS 1 Anhui Conch China 217Metric tonne 26 Plants 2 Lafarge France 205 134 3 Holcim Switzerland 174 117 .

The government incorporated the Cement Corporation of India (CCI) in 1965 to achieve self-sufficiency in cement production in the country. . In its 12th Five Year Plan.GOVERNMENT INITIATIVES    The Government of India's keen focus on the development of infrastructure in the country has given a big boost to the cement industry in India. the government plans to increase investment in infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.

Government of India. . CCI has 10 units spread over eight states in India.)     Currently. the government has been approving their investment schemes. The company received accreditation for 13 tests.GOVERNMENT INITIATIVES (CONTI…. Ambuja Cements Ltd's Concrete Futures Laboratory (CFL) has received accreditation for tests in concrete from National Accreditation Board for Testing and Calibration Laboratories (NABL) under the Department of Science & Technology. In order to help the private sector companies thrive in the industry.

With the Government of India providing enough scope in infrastructure development. which will go a long way in the betterment of this sector. there is a lot of hope for the cement sector. is globally competitive.ROAD AHEAD    The Indian cement industry. being the second largest in the world. Following the release of the Union Budget in July 2014. . cement companies are hoping for some reforms like reduction in excise duties.

with the ever-increasing industrial activities.)  In addition. real estate. the demand for cement in India is slated to increase in the upcoming years. . and with the Special Economic Zones (SEZs) being developed across the country.ROAD AHEAD (CONTI…. construction and infrastructure.

. commercial construction (11%) and industrial construction (9%).TRENDS    The Indian cement industry is the 2nd largest market after China accounting for about 8% of the total global production. Cement is a cyclical commodity with a high correlation with GDP. The housing sector is the biggest demand driver of cement. accounting for about 67% of the total consumption. It had a total capacity of about 347 m tonnes (MT) as of financial year ended 2012-13. The other major consumers of cement include infrastructure (13%).

)    Cement. west. east and the central region. being a bulk commodity. is a freight intensive industry and transporting it over long distances can prove to be uneconomical. north. . south. This has resulted in cement being largely a regional play with the industry divided into five main regions viz. The Southern region of India has the highest installed capacity. accounting for about one-third of the country's total installed cement capacity.TRENDS (CONTI….

. quite a few foreign transnational companies have ventured into the Indian markets. Heidelberg and Italicementi have made a couple of acquisitions. Consolidation has taken place with the top two cement groups controlling nearly one-third of the total domestic capacity.TRENDS (CONTI…. Holcim has increased its stake in domestic companies Ambuja Cements and ACC to over 50% to gain controlling interest. Already. the balance capacity still remains quite fragmented. .)    Given the high potential for growth. However. while companies like Lafarge.