Cement Industry of India: Outlook and Challenges

Cement Industry of India: Outlook and Challenges

Tuesday, June 01 2021

It is customarily maintained that the case for development of the cement industry in India is strong and unassailable. Let us do some number crunching to establish the significance of this industry in India:

• the second largest cement industry in the world, in terms of production, with over 8 per cent (502 million tonnes per annum in 2018) of the global installed capacity and generating employment for over 1 million people
• 99 per cent use dry manufacturing process
• 545 million tonnes installed capacity
• 20000 downstream created with each million tonne of cement manufacturing capacity.

Despite these macro-economic numbers, it is disconcerting that the demand-supply situation is highly skewed with the demand for cement far outpacing the supply of cement by a fair clip. This is starkly reflected in the fact that as against the global per capita cement consumption of 500 kg, the Indian per capita cement consumption continues to languish at less than 200 kg. Hence, while the potential for cement consumption is humungous, recent events and developments cause concern.

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