Abstract

The paper discusses the growth and financial sustainability of cement industry in India. It has been found that China is the largest cement producer in the world followed by India. India has a significant share in global cement market. UltraTech Cement has the highest market capitalization in India, followed by Shree cement, Dalmia bharat, Ramco cement, and India cement. Quantity of cement export from India is higher than its import quantity. Production and consumption of cement are increasing continuously. Environmental issues, land acquisition, and logistics are the major challenges before the cement industry.

India is the second-largest cement producer in the world and accounts for over 8% of the global installed capacity. Of the total capacity, 98% lies with the private sector and the rest with the public sector. The top 20 companies account for around 70% of the total cement production in India. As India has a high quantity and quality of limestone deposits throughout the country, the cement industry promises huge potential for growth.In 2023, the market size of India’s cement industry reached 3.96 billion tonnes and is expected to touch 5.99 billion tonnes by 2032, exhibiting a CAGR of 4.7% during 2024-32. India's cement production reached 374.55 million tonnes in FY23, a growth rate of 6.83% year-on-year (YoY). The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. The Government also intends to expand the capacity of railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation costs. These measures would lead to increased construction activity, thereby boosting cement demand.