Market Reports

India's Cement Industry

1	Quick Facts: Cement Industry
2	Overview of Indian Cement Industry
3	Major Players in Indian Cement Industry
4	Government Initiatives
5	Megatrends in the Cement Industry
6	Why Invest in India’s Cement Industry?
7	Our Team

Quick Facts: Cement Industry

India is the second-largest producer of cement in the world
India accounts for more than 8% of the total global installed cement capacity
India’s total installed cement production capacity is ~700 million tons
India’s per capita annual cement consumption accounts for 290 kg
Many Indian cement plants use Best Available Technologies (BAT) and operate near the thermodynamic limit, making the industry one of the most energy-efficient globally
PPC (Portland Pozzolana Cement) is the most widely produced cement in India, supported by the easy availability of fly ash and slag, a trend that continues today
FDI inflows into the industry related to the manufacturing of cement and gypsum products reached INR 510.7 Bn between April 2000 and September 2024
Limestone, the key raw material for cement, provides jobs to about 22,000 people

Overview: of Indian Cement Industry

The Indian cement industry is a vital part of the country’s infrastructure and economic progress. As the second-largest cement producer in the world, it plays a major role in contributing to India’s GDP, industrial production and employment generation.

With an installed capacity of around 700 Mn tons per year as of April 2024, the industry supports key sectors like housing, transportation and urban development. In FY23, the market size of the cement industry reached 445 Mn tons and is projected to grow to 625 Mn tons by 2029, with an expected CAGR of 7% from 2024 to 2029.

India’s rich and widespread limestone reserves offer strong growth potential for the sector. The country has 210 large cement plants, with 77 of them located in Andhra Pradesh, Rajasthan and Tamil Nadu. Region-wise, South India contributes about 32% of total cement production capacity, followed by North (20%), East (20%), West (15%) and Central India (13%).

Exports of panel cement, clinkers and asbestos cement products stood at INR 50.9 Bn in FY24, while imports were INR 14.4 Bn during the same period. Looking ahead, the industry expects an 8% increase in sales by 2025, supported by government investment in infrastructure, although it continues to face challenges such as lower sales realization in 2024.

Major Players in Indian Cement Industry

The Indian cement industry is dominated by key players such as UltraTech Cement, Ambuja Cement, ACC, Shree Cement and Dalmia Bharat, together contributing over 60% of total production. Regional companies like Ramco Cements, JK Cement and The India Cements focus on specific local markets.

UltraTech Cement

UltraTech Cement manufactures and sells cement and related products, with operations spread across the globe.
The company is experiencing strong growth through expansion, acquisitions and operational improvements. With the acquisition of Kesoram and India Cements, its production capacity has reached 184 Mn tons and is expected to soon touch 212 Mn tons.
UltraTech has shown steady revenue growth over the last five years, with sales rising from INR 447.2 Bn in FY2021 to INR 749.4 Bn in FY2024.

Ambuja Cement

Part of the Adani Group, it is one of India’s leading cement companies with over 100 Metric Tons Per Annum (MTPA) capacity, operating 6 integrated plants and 8 grinding units across the country.
The company is on a strong growth path, aiming to expand its capacity to 140 Mn tons by FY28.
The company ranks as the 9^th largest cement production company in the world.
Ambuja Cements has shown steady growth, with sales rising from INR 139.7 Bn in 2021 to INR 194.5 Bn in 2025.

Shree Cement

Shree Cement, the third-largest cement producer in India, manufactures and sells cement and related products and is known as one of the lowest-cost producers in the country.
With a current production capacity of 62.8 Mn tons and 2 new plants coming in FY26, it targets over 80 Mn tons by 2028. Green energy meets 60.2% of its power needs, with more solar capacity being added.
The company’s financial growth has been uneven, with sales rising at a modest 8% CAGR to INR 192.8 Bn in FY25.

JK Cements

JK Cement, part of the JK Organisation, has over 4 decades of experience in manufacturing and selling cement and related products.
Despite weak demand in early FY25, the company saw a strong recovery in Q3 driven by better price realizations and premium products making up 16% of trade sales. It is also expanding its green energy capacity, with 11 MW commissioned in Q3.
JK Cement has shown stable revenue growth with a 15% CAGR over 4 years, rising from INR 66 Bn in FY20 to INR 115.5 Bn in FY24, though profit margins have been volatile.

Dalmia Bharat

Founded in 1939, Dalmia Bharat is the fourth-largest cement producer in India by installed capacity, engaged in manufacturing and selling cement.
The company ended FY25 with 49.5 Mn tons of capacity and plans to add 6 Mn tons through new projects in Belgaum and Pune by FY27.
Over the last 5 years, Dalmia Bharat has shown moderate growth, with sales rising at an 8% CAGR from INR 101.1 Bn in FY20 to INR 139.8 Bn in FY25.

Government Initiatives

Carbon Capture and Utilisation (CCU) Testbeds

The Department of Science and Technology (DST) has launched five carbon capture testbeds in the cement sector, which is India’s first major step to reduce emissions through focused research and innovation.
Carbon Capture and Utilisation (CCU) helps cut pollution in industries like cement by capturing CO₂ and converting it into useful products like fuels, urea, chemicals or building materials.
Since cement is one of the hardest industries to clean up, using new carbon-reducing technologies is key to helping India meet its long-term climate and net-zero targets.

The National Infrastructure Pipeline (NIP)

The National Infrastructure Pipeline (NIP) outlines an INR 128.4 Tn investment plan for FY 2020–25 to boost infrastructure across sectors like transport, energy, housing and water.
This is the first structured plan of its kind by the government, aiming to deliver world-class infrastructure and improve living standards across the country.
With large-scale construction across highways, housing and urban infrastructure under the NIP, the cement industry stands to benefit significantly from rising material demand

Bharatmala and Pradhan Mantri Awas Yojana (PMAY)

Bharatmala Project:
This ambitious highway development program aims to build and upgrade over 34,800 km of roads, significantly boosting infrastructure activity and driving strong demand for cement used in road construction.
Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0):
This scheme aims to provide affordable housing for urban residents. On 18th June 2025, 2.35 lakh new houses were approved under this program, which is expected to boost cement demand and support growth in the urban housing sector.
Together, these government initiatives are expected to sustain robust cement demand in India by accelerating infrastructure and housing projects, thereby supporting capacity expansions.

Megatrends in the Cement Industry

Strong Push for Sustainability and Green Tech

Indian cement companies rank among the world’s most sustainable, with some of the lowest energy consumption levels 725 kcal/kg of clinker (thermal) and 75 kWh/Ton of cement (electrical).
Adoption of advanced technologies like waste heat recovery systems and digital automation has helped reduce both production costs and environmental impact.
The industry is actively lowering its clinker factor and increasing alternative fuel use, aligning with global sustainability goals while supporting India’s infrastructure and economic growth.

Capacity Expansion & Consolidation

Leading cement companies like UltraTech, Ambuja and Dalmia Bharat are expanding production capacity to meet rising demand.
The merger of Ambuja Cement and ACC under the Adani Group has reshaped the market, creating stronger regional and national players.
India’s total cement capacity has grown to about 700 Mn tons as of 2024, supporting large infrastructure projects and housing demand.

Rise In Demand for Blended Cements

Blended cements like Portland Slag Cement (PSC) and Portland Pozzolana Cement (PPC) are steadily gaining popularity, replacing Ordinary Portland Cement (OPC) as the dominant choice in the market.
OPC, once the market leader, now holds only about 20–25% of the market, while blended cements account for nearly 75% of total cement production in India.
The government’s approval for blending has supported the growth of composite cements, strengthening the industry’s shift towards greener and more sustainable products.

Why Invest in India’s Cement Industry?

Robust and Growing Demand

With a large production capacity, India’s cement sector is a critical enabler of national development, supporting large-scale housing, infrastructure and urbanisation efforts.
Cement demand is expected to grow further, with an 8% increase in sales likely by CY25. This is mainly due to strong government spending on infrastructure.
In FY24, India exported much more cement than it imported, showing healthy demand both in the country and overseas.

Export Potential

India’s cement industry is well-positioned to boost exports over the next decade, thanks to low production costs, large limestone reserves and growing demand in international markets.
Cement plants near ports in Gujarat, Visakhapatnam and other coastal regions are well-placed to export clinker and grey cement, especially to markets in the Middle East and Africa.
Steady demand and healthy profit margins have attracted major global players like Lafarge-Holcim, Heidelberg Cement and Vicat to invest in India’s cement sector.

Infrastructure Development

The Indian government is investing heavily in projects like smart cities, highways, airports and urban renewal, which are increasing the demand for cement.
Major projects like the Mumbai-Ahmedabad Bullet Train Corridor are using nearly 20,000 cubic meters of cement every day, showing the scale of demand from such developments.
Government schemes like Pradhan Mantri Awas Yojana (PMAY) for affordable housing and Gati Shakti for transport connectivity are also driving steady cement demand across the country.

Market Reports

India's Cement Industry

Quick Facts: Cement Industry

Overview: of Indian Cement Industry

Major Players in Indian Cement Industry

Government Initiatives

Megatrends in the Cement Industry

Why Invest in India’s Cement Industry?

Our Team

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