44.Cement Industry

India is the world's second largest producer of cement after China with industry capacity of over 200 million tonnes (MT). With the boost given by the government to various infrastructure projects, road networks and housing facilities, growth in the cement consumption is anticipated in the coming years. The modern Indian cement plants are state-of-the-art plants and amongst the best in the world. The cement industry comprises of 134 large cement plants with an installed capacity of 173.08 million tonnes and more than 350 operating mini-cement plants, with an estimated capacity of 11.10 million tonnes per annum, making a total installed capacity of 184.18 million tonnes in the last fiscal, as per the Department of Industrial Policy and Promotion's latest data.

In order to meet the expanding demand, cement companies are fast developing new plants. The cement industry is poised to add 111 MT of annual capacity by the end of 2009–10 (FY 2010), riding on the back of approximately 141 outstanding cement projects. According to a report by the ICRA Industry Monitor, the installed capacity is expected to increase to 241 MTPA by FY 2010-end. India's cement industry is likely to record an annual growth of 10 per cent in the coming years with higher domestic demand resulting in increased capacity utilisation.



While the Cement Corporation of India, a central public sector undertaking, comprises 10 units; the various State governments own 10 large cement plants. Among the leading domestic players in terms of cement manufacturing are: Ambuja Cement, Aditya Birla Group (which owns UltraTech Cement), ACC Ltd, Binani Cement, India Cements and J K Cement. They are not only the foremost producers of cement but also enjoy a high level of equity in the market.

Despite a slowdown in most sectors of the economy, the Aditya Birla group, the country's largest cement maker, has seen a sharp rise in cement sales in December. According to figures released by the conglomerate, sales by the group are up 13.36 per cent at 2.82 MT, compared to last year. The Birla group's production of cement for December also rose, by 14.85 per cent to 2.27 MT.The other large cement maker, ACC, too saw a jump in sales in December, despite the slowdown in the realty sector.