22For updated information, please visit www.ibef.org
Executive Summary…………………………. 3
Advantage India……………………………… 4
Market Overview and Trends………………. 5
Growth Drivers……………………………….. 25
Success Stories: Innovative Solutions, UltraTech Cement, Ambuja Cement…………. 31
Opportunities…………………………………. 34
Useful Information…………………………… 36
CEMENT
MAY 2014
33For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Second largest Cement market
• With nearly 350 million tonnes of cement production capacity, India is the second largest cement producer in the world. By 2020, cement production will reach to 550 million tonnes
Dominated by private players
• Of the total capacity, 98 per cent lies with the private sector and the rest with public sector
Higher share of large plants
• 188 large cement plants together account for 97 per cent of the total installed capacity, while 365 small plants account for the rest
Large concentration in South and West
• Of the total 188 large cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu
Source: Planning Commission, Aranca Research
CEMENT
MAY 2014
44
• The engineering sector is delicensed; 100 per cent FDI is allowed in the sector
• Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period
Growing demand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: Edelweiss,Notes: FY20E – Estimated market size for 2020
^Planning Commission estimates
Robust demand• Robust infrastructure growth
during 12th Five Year Plan to drive growth
• Demand is expected to be boosted by growth in real estate sector
Long-term potential• Oligopoly market, where large
players have partial pricing control
• Low threat from substitutes
Attractive opportunities• The North-East, which is witnessing
a construction boom, offers attractive investment opportunities
• Large planned investments in infrastructure and housing is likely to boost demand for cement in the coming years as well
Increasing investments• Robust investments are being
made by the existing players to expand their capacity
• Increasing presence of Tier II cement players
• Use of alternate fuels to lower production costs and emissions
FY13
Production capacity:
350 million tonnes^
FY20E
Production capacity:
550 million tonnes
AdvantageIndia
CEMENT
MAY 2014
55For updated information, please visit www.ibef.org
OVERVIEW OF THE INDIAN CEMENT INDUSTRY
Source: Cement Manufacturers’ Association (CMA),Planning Commission, Aranca ResearchNote: mtpa - Million Tonnes Per Annum, mt – Million Tonnes
^Planning Commission estimates
CEMENT
Cement Industry (FY13)
Mini And White Cement Plants Large Cement Plants
• Cement plants: 188
• Installed capacity: 350 mtpa^
• Cement production: 251 mt
• Cement plants: 365
• Installed capacity: 11.1 mtpa
• Cement production: 6.0 mt*
MAY 2014
66For updated information, please visit www.ibef.org
INDIA – WORLD’S 2nd LARGEST CEMENT PLAYER
Top Cement Producers in 2012 (million tonnes)
Source: International Cement Review, Aranca Research
India is the 2nd largest cement producer as well as consumer in the world led by the enormous growth in the infrastructure and construction sector for the last two decades
Top Cement Consumers in 2012 (million tonnes)
CEMENT
MAY 2014
China
Indi
aUSA
Iran
Turk
ey
Brazil
Russia
Japa
n
Egypt
Indo
nesia
2220
24774 73 69 68 60 59 55 53
China
Indi
aUSA
Brazil
Russia Ira
n
Turk
ey
Indo
nesia
Saudi
Ara
bia
Egypt
2160
24279 69 63 59 58 55 53 51
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