Synopsis: India’s cement sector is witnessing strong demand momentum, driven by government infrastructure push and private housing growth. Companies like Ultratech, ACC, and Birla Corporation are ramping up capacity despite cost pressures.
Cement Demand Surges
The Indian cement industry is poised to expand rapidly, with demand projected to grow 6-8% annually in the near term. Infrastructure projects such as expressways, metro rail networks, and housing schemes are fueling consumption. Urban housing demand and rural affordability programs under PMAY are further lifting sales.
Key Company Moves
- Ultratech Cement is expanding its Cuttack plant in Odisha, enhancing capacity in eastern India.
- Birla Corporation is planning new capacity additions to meet rising demand.
- Several mid-tier cement makers are focusing on regional expansions to capture niche markets.
Challenges in Costs
Input costs remain a challenge—coal, fuel, and logistics are pushing up production costs. However, price revisions in key markets are helping companies maintain margins.
Outlook
Analysts expect the cement industry to touch 550 million tonnes of capacity by 2030, making India a dominant player globally. Sustainability, green cement, and digital supply chains will be central to future competitiveness.