India's Cement Industry: A Foundation for Growth
India’s cement sector is poised for expansion, driven by infrastructure development, housing, and sustainable practices.
Investment and Expansion in Cement Sector
FDI Inflows
Cement and gypsum products have attracted substantial foreign direct investment, reaching an impressive $7.91B from April 2000 to June 2024, demonstrating strong international confidence in India's cement sector.
Capacity Growth
Major expansion opportunities are emerging through ambitious greenfield and brownfield projects planned between FY25-FY28, with industry leaders committing to new state-of-the-art plants, targeting a substantial capacity addition of 160M MTPA.
Export Value
The sector achieved remarkable export performance in FY23, establishing a growing strategic presence in key markets including Sri Lanka, Nepal, UAE and Bangladesh, with exports reaching a significant milestone of $682M.
Growth Drivers in India's Cement Industry
Infrastructure Development
Government infrastructure spending to exceed $133.86 billion in FY24-25, driving cement demand.
Housing & Smart Cities Expansion
Real estate market estimated to grow from $227.26 billion in 2024 to $687.27 billion by 2029, creating strong demand for cement.
Sustainable and Green Cement Initiatives
Companies adopting alternative fuels such as fly ash, rice husk, and rubber dust to reduce carbon emissions.
Advanced Technologies
Government shifting to cement-based roads instead of bitumen, increasing cement consumption. Ready-Mix Concrete (RMC) gaining traction in urban projects.
Key Investments in India's Cement Sector
UltraTech Cement
Investing $3.89 billion to expand capacity to 200 MTPA by 2026
Ambuja Cement (Adani Group)
Acquiring Penna Cement for $1.24 billion, adding 14 MTPA production capacity.
Dalmia Bharat Cement
Investing $1.08 billion to expand production capacity from 46.6 MTPA to 120 MTPA by 2031.
Government Policies Supporting Cement Industry Growth
🏗️ Infrastructure Investment
The government has allocated $9.04 billion for 100 critical transport infrastructure projects,
creating substantial cement demand. The increased capital outlay of $30.39 billion for railways in FY24-25
signals strong commitment to infrastructure development.
- ✔️ 100+ major transport projects in pipeline
- ✔️ Record railway infrastructure expansion
- ✔️ Focus on cement-based road construction
🌱 Green Energy and Sustainability
Progressive environmental policies are transforming the cement sector through sustainable practices. The National Green Hydrogen Mission is providing crucial support for cement manufacturers to reduce their carbon footprint.
- ✔️ Tax benefits for WHRS implementation
- ✔️ Green hydrogen adoption incentives
- ✔️ Carbon reduction targets support
🏙️ Smart Cities and AMRUT Missions
Urban development initiatives are driving cement consumption through modernization projects. The Smart Cities Mission, combined with AMRUT, is creating sustained demand for quality cement products.
- ✔️ 100 smart cities under development
- ✔️ Urban infrastructure modernization
- ✔️ Sustainable urban planning focus
Why Invest in India's Cement Market?
Second-largest Cement Producer
India's cement industry is growing at 7-8% CAGR, reaching 450+ MTPA demand by FY27.
100% FDI Allowed
Investment-friendly policies for foreign companies entering India's cement sector.
High Growth in Infrastructure
$133.86 billion allocated to infrastructure projects in FY24-25.
Expanding Housing Market
2 crore additional homes under PMAY, increasing cement demand.
Export Potential
Cement exports expected to surpass $1 billion by 2026, opening global market opportunities.
Focus on Sustainability
Increasing use of alternative fuels, waste heat recovery, and green cement production.
