Cement Industry in India 2022 – 2027

Cement Industry in India 2022 – 2027

The cement industry is mainly driven by the consequential number of construction activities with the growing demand and a surging need for residential complexes of urbanised population. Furthermore, the construction of various infrastructure projects such as airports and roads, undertaken by the government in recent times, propels the growth of the market.

Market insights:

India is the second-largest producer of cement in the world, accounting for more than 7% of the global installed capacity. In FY 2022, domestic production of cement stood at 356 million tons, up from 296 million tons in FY 2021. In terms of volume, cement consumption reached 355.46 million tons in FY 2022 and is expected to reach 450.78 million tons by the end of FY 2027. The spurt in demand from sectors such as housing, commercial construction, and industrial construction will lead to an increase in consumption.

In September 2022, The Adani Group, acquired Ambuja Cements and its subsidiary ACC Ltd. from Switzerland's Holcim Group for USD 6.5 Bn. With this acquisition, Adani Group became the second-largest cement maker in the country

COVID-19 impact analysis:

In the wake of the pandemic, production was affected due to intermittent lockdowns and restrictions on mobility. Construction activities were interrupted in Q4 FY 2021 and Q1 FY 2022 because of the second wave and this resulted in the decline of consumption. However, because orders were put on hold, consumption volumes increased in the second quarter of FY 2022. Significant market growth is expected over the forecast period because of higher infrastructure and developmental activities.