India, the world’s second-largest cement producer after China, boasts an installed capacity of around 540 million tonnes, with estimates projecting it to rise to over 600 million tonnes annually by 2025². Let’s delve into the key aspects:
- Demand and Growth:
- In FY2021, cement demand fell by 10% due to the Covid-19 pandemic, reaching levels similar to FY2018 (around 314Mt).
- However, FY2022 witnessed an 8% growth, reaching 340Mt, followed by a 9% increase in FY2023 (around 370Mt).
- Projections indicate 6.5% to 8.5% annual growth over the next 5 – 7 years, reaching 535Mt by FY2028.
- Capacity and Players:
- India’s installed cement capacity stood at 595Mt/yr by FY2023, with approximately 80 producers operating 300 facilities.
- The top 25% of producers hold about 85% of the total capacity.
- An additional 120Mt/yr capacity is expected to be added over the next five years, reaching an estimated 700Mt/yr by FY2028.
- Supply and Regions:
- Effective cement capacity (considering operational capacity) was about 515Mt/yr in FY2023 and is projected to reach 625Mt/yr by FY2028.
- India is divided into five regions: North, Central, East, West, and South.
- The East region has the highest demand, while the South region boasts the highest capacity.
- By FY2028, the West may transition to a deficit, and the Central region could have a marginal surplus¹.
In summary, India’s cement industry continues to evolve, balancing demand, capacity, and regional dynamics. 🏗️🇮🇳🏢
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