Dublin, July 11, 2024 (GLOBE NEWSWIRE) -- The "India Cement Industry Market Size & Forecast by Value and Volume Across 50+ Market Segments for Cement Products, Distribution Channel, Market Share, Import - Export, End Markets - Databook Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The cement industry in India is expected to grow by 3.2% on an annual basis to reach US$ 22.04 billion in 2024. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.7% during 2024-2028. The cement output in India is expected to increase from US$ 21.35 billion in 2023 to reach US$ 24.51 billion by 2028.
The Indian cement industry is expected to record strong growth over the next five years. The government spending on infrastructure projects, coupled with rising urbanization fueling housing demand, is expected to drive cement consumption across India over the medium term. To tap into the market growth, producers are seen expanding their capacity in the Indian market.
UltraTech Cement, for instance, revealed that the firm will be commissioning two new greenfield projects in India. Over the next three years, the firm is planning to invest INR 324 billion towards its capital expenditure. In H2 2024, the demand is expected to improve in the Indian market. This has resulted in a price hike by various cement manufacturers in Q2 2024. Overall, the outlook for the Indian market remains upbeat over the next three to four years.
Cement firms are continuing with their capacity expansion plans to tap into the future growth prospects in India
Over the next five years, the demand for cement is expected to rise significantly in the Indian market. The projections come at the back of increased infrastructure spending by the government, rapid urbanization, and the upsurge in the demand for commercial space across India. To meet the demand and aid business growth, cement firms are continuing with their capacity expansion plans in 2024.
- UltraTech Cement, for instance, revealed that the firm will be commissioning two new greenfield projects in India. Over the next three years, the firm is planning to invest INR 324 billion towards its capital expenditure. UltraTech Cement, notably, is the cement leader in India and the investment is expected to further strengthen its position in the market. Having a revenue of US$7.9 billion, the cement manufacturer is the third largest producer in the world, outside of China. Over the medium term, the firm plans to have a total capacity of close to 200 mtpa.
- Adani Group, which entered the cement market in 2022, is also on track to take up its grinding unit capacities. The firm, across Ambuja, ACC, and Sanghi, plans to have a capacity of 140 mtpa by fiscal year 2028. The current capacity for the group stands at 78.9 mtpa. Under the ongoing capacity expansion plan, 35 new units are projected to come up. JK Cement is another firm that is seeking to expand its capacity in the Indian market. The firm incurred a capital expenditure of INR 11.7 billion in fiscal year 2024, and the outlay is expected to be around INR 18 to INR 19 billion over the next two fiscals.
Dalmia Bharat, another leading cement producer in India, is expanding its capacity. The firm seeks to have an installed capacity of 110 to 130 mtpa by 2031. These capacity expansion projects will aid the competitive landscape in the market that is poised to grow at an accelerated pace over the next few years.
Cement firms will benefit from the higher infrastructure spending by the government in India
The Indian government has been consistently increasing its investment in various infrastructure projects over the last few years. The trend is poised to continue further over the medium term. This will benefit the cement producers across the country over the next few years.
In the 2024-25 budget, the finance minister allocated US$134 billion for infrastructure development. This is worth 3.4% of the GDP and is higher than the allocation announced during the 2023-24 budget. In 2024, mega construction projects such as the GIFT City in Gujarat, the Surat DREAM City, and the Dholera SIR are expected to aid the cement demand in India.
Furthermore, projects like the Bengaluru-Mumbai economic corridor and the Delhi-Mumbai industrial corridor will drive cement consumption over the medium term. Large investments in the renewable energy sector will also aid the market growth in India in 2024.
Cement firms are increasing prices amid anticipation of demand revival in India in H2 2024
Several major cement companies have announced price increases for their products in Q2 2024. In the Northern region, prices have gone up by INR 10-15 per bag, while in the Central and Eastern regions, the increase is between INR 30-40 per bag. The Western region has seen a price rise of INR 20 per bag. This price hike follows five months of declining cement prices due to weak demand. Despite the recent decrease in demand, the outlook for India's long-term growth prospects remains strong. Cement producers believe that the country's focus on infrastructure projects, the recovery of the real estate sector, and new industrial investments will continue to drive growth.
This market intelligence report provides a detailed view of market opportunities in the cement industry. With over 50+ KPIs, covering construction markets, distribution channel, end-user, and products in India, this databook offering primarily provides data-centric analysis with charts and tables.
- Cement Market Dynamics: Provides a comprehensive data-centric view of size and structure, industry dynamics, and cement opportunities in the various end-user segments.
- Distribution Channel: Provides an in-depth analysis of cement distribution channel across products at country level in value terms.
- Cement Products: Provides demand analysis of market by 4 key segments: Portland Cement, Blended Cement, Specialty Cement, and Green Cement. This segment also includes in depth analysis of further sub-segments of 8 cement product types.
Report Scope
This databook offering provides a detailed data-centric analysis of the cement industry, covering market opportunity, and industry dynamics by cement products and end-user, construction market and distribution channel.
In addition, it also provides market size of the cement products and its demand analysis in India. With over 50+ KPIs at the country level, this report provides comprehensive understanding of market dynamics at a more granular level.
India Cement Outlook: 10-year market size & forecast in value and volume
India Cement Outlook by product type: 10-year market size & forecast in value and volume
- Portland cement
- Blended Cement
- Portland Cement
- Specialty Cement
- Green Cement
India Cement Market by type of Portland Cement, 2019-2028
- Type IS (X), Portland-Slag Cement
- Type IP (X), Portland-Pozzolan Cement
- Type IL (X), Portland-Limestone Cement
- Type IT, Ternary Blended Cement
India Cement Market by type of Specialty Cement, 2019-2028
- Rapid Hardening Cement
- High Alumina Cement
- White Cement
- Sulphate Resistant Cement
- Others
India Cement Market by Key Markets, 2019-2028
- Residential Buildings
- Non-Residential Buildings
- Infrastructure & Other Markets
India Cement Market by Distribution Channel, 2019-2028
- Direct Channel
- Indirect Channel
India Cement Market by End-User, 2019-2028
- Ready-Mix Concrete Producers
- Consumers
- Concrete Product Manufacturers
- Other End Users
India Cement Market Share by Key Players
India Cement Market Top Import Destinations
India Cement Market Top Export Destinations
For more information about this report visit https://www.researchandmarkets.com/r/minsg4
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