Government Initiatives Driving Indian Cement Industry

The cement industry in India witnessed an impressive growth over the past few years, with southern region emerging as the major cement clusters in terms of cement production. This is mainly due to the rising demand from the housing sector, increased activity in infrastructure, and construction recovery. Further, sufficient raw material’s availability and various incentives provided by the state governments make this region lucrative for investments. Numerous domestic and international cement companies are striving hard to establish their production base in this region, says our new research report, “Indian Cement Industry Forecast to 2012”. Moreover, it is anticipated that the cement production will grow at a CAGR of around 12% during 2011-12 to 2013-14.

Our research identified that, major cement producers are switching to Portland Pozzolana Cement (PPC) as it is more suitable for general construction purposes. The share of PPC is expected to grow in the coming years. The manufacturing cost of OPC is usually higher than PPC by INR 200-300/Tons as the blending material, PPC is generally inexpensive than clinker. As the fly ash is well grounded, the grinding cost (primarily the cost of power) automatically gets decreased for PPC in comparison to OPC.

However, we observe that in future, it is anticipated that cement demand can be attributed to revival of infrastructure and real estate projects, especially in rural areas. Moreover, improvement in rural infrastructure and the favorable policies by the government will provide a suitable atmosphere for cement manufacturers to resolve their overcapacity (probable) issues by selling their access production in rural areas.

“Indian Cement Industry Forecast to 2012” provides an extensive research and objective analysis of the cement industry in India. It thoroughly examines all prominent emerging trends and drivers fueling growth in the industry. The report highlights major segments, such as production, installed capacity, export, import, plant size, and consumption to provide clients with valuable information of different aspects of the cement industry. It also throws light on the regional cement demand-supply outlook to help clients understand the market dynamics and get an insight of the industry at a micro level.

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