Cement Market in India to grow at a CAGR of 8.96% over

28 November 2016

India’s cement industry is a vital part of its economy, providing employment to more than a million population, directly or indirectly. Ever since it is deregulated in 1982, the Indian cement industry has attracted huge investments, from both Indian and foreign investors, making it the second largest in the world. The industry is currently in a turnaround phase, trying to achieve global standards in production, safety, and energy-efficiency.

The immense potential offered by the housing sector of the world’s second largest populated country is expected to drive the cement market. With supply-side developments in technology, product range, and capacity utilization, the industry is expected to showcase tremendous growth in the coming years.

The consolidation of the once fragmented Cement market is a major trend upcoming in the market. Small and medium vendors present in the market are entering into JVs to increase their respective market shares. The low cost of the raw materials required for the manufacture of cement, gives contractors an upper hand when bargaining for cement for construction as several small and medium-sized vendors are operating in the market.

According to the report, growth of the market is mainly because of growth of the construction industry in India and increased support from the GoI. The Construction industry of India has the potential to create tremendous opportunities that can boost the Cement market. The country is in a crucial phase of development where numerous infrastructure projects are underway in different regions, thus propelling the demand for cement production.

Further, the report states that a major challenge that the market faces is high transportation costs. Poor logistics system and weak transport networks increase the cost of transporting cement from the plant to the construction site.

Source – Business Wire