From powering the colossal ambitions of a nation on the move to quietly anchoring its most humble homes, India's cement industry is a titan of growth, boasting a staggering 556 million tonnes of annual production capacity and fueling the world's second-largest output of the essential grey powder.
Key Takeaways
- India's total cement production capacity stood at 556 million tonnes per annum (MTPA) as of March 2023, with private sector accounting for 96% of the total.
- In FY23, cement production in India was 378.9 million tonnes, up 9.2% from 347.33 million tonnes in FY22.
- Southern region holds 34% of India's total cement capacity at 189 MTPA in 2023.
- India's domestic cement consumption in FY23 was 382 million tonnes, growing 10% YoY.
- Per capita cement consumption in India rose to 261 kg in FY23 from 238 kg in FY22.
- Infrastructure sector accounts for 55% of cement demand in 2023.
- Indian cement industry market size reached USD 17.80 billion in FY23.
- Cement sector revenue grew 12% to Rs 1.6 lakh crore in FY23.
- EBITDA margins for cement firms averaged 18.5% in FY23.
- India's cement exports in FY23 were 11.87 million tonnes, up 40% YoY.
- Cement imports into India FY23: 1.9 million tonnes, down 20%.
- Top export destination: Bangladesh with 3.5 MT in FY23.
- Cement industry CO2 emissions: 8% of national total at 270 MT annually.
- Waste co-processing in kilns: 2.5 million tonnes in FY23.
- Green cement production: 20% of total blended varieties.
India's cement industry is expanding rapidly to meet strong domestic demand and exports.
Consumption and Demand
- India's domestic cement consumption in FY23 was 382 million tonnes, growing 10% YoY.
- Per capita cement consumption in India rose to 261 kg in FY23 from 238 kg in FY22.
- Infrastructure sector accounts for 55% of cement demand in 2023.
- Housing sector demand for cement: 25% of total in FY23.
- April-February FY24 cement consumption up 10.5% to 308 MT.
- Urban demand growth for cement at 8% CAGR FY18-23.
- Rural housing drives 15% of cement consumption growth in FY23.
- Cement demand from roads & highways: 20% in FY23.
- Projected cement demand FY24: 400-410 MT.
- Per capita consumption lags global average of 590 kg.
- Industrial sector cement use: 10% of total demand FY23.
- Government capex boosted cement demand by 12% in FY23.
- Monthly consumption March 2023: 32.5 MT.
- Real estate sector demand growth: 7% in FY23.
- Cement demand elasticity to GDP growth: 1.5x in India.
- North-East region consumption growth: 15% YoY FY23.
- PMAY scheme to drive 20 MT additional demand by FY25.
- Hydropower projects demand: 5 MT cement annually.
- Airport construction: 2 MT cement demand in FY23.
- Metro rail projects consume 10 MT cement yearly.
- Smart cities initiative: projected 15 MT demand boost.
- Steel plant expansions demand 3 MT cement in FY23.
- Irrigation projects: 8% of total cement demand.
- Defence infra demand growth: 10% in FY23.
- Cement demand from ports & shipyards: 4 MT annually.
- FY24 Q1 consumption growth: 12% YoY.
Consumption and Demand Interpretation
India is building itself out of a per capita cement deficit at a blistering pace, with government infrastructure acting as the primary accelerator, yet each citizen still only gets a fraction of the global concrete pie.
Environmental and Sustainability
- Cement industry CO2 emissions: 8% of national total at 270 MT annually.
- Waste co-processing in kilns: 2.5 million tonnes in FY23.
- Green cement production: 20% of total blended varieties.
- Water consumption reduced to 88 litres per tonne in FY23.
- 50 cement plants certified for zero liquid discharge.
- Fly ash utilisation: 75% of generated 200 MT.
- Renewable energy use: 15% of total power in industry FY23.
- Afforestation: 1.5 million trees planted by industry in 2023.
- Thermal substitution rate: 12% with AFR in FY23.
- Carbon capture initiatives: pilots at 5 plants.
- Dust emission standards compliance: 95% plants.
- Solar power capacity in cement: 1 GW cumulative.
- Slag cement production: 30 MT using steel waste.
- GHG emissions intensity: 0.72 tCO2/tonne cement.
- Hazardous waste utilisation: 100% in kilns.
- Energy efficiency: 75 kWh/tonne clinker average.
- Plastic waste co-processing: 0.5 MT annually.
- CSR spend on environment: Rs 500 crore in FY23.
- Limestone mining reclamation: 80% area restored.
- Green bonds issued: Rs 2,000 crore by cement firms.
- NOx emissions reduced 20% post upgradation.
- Biomass usage in kilns: 2% thermal substitution.
- ISO 14001 certified plants: 90% of industry.
- Water recycling rate: 85% in operations.
- PM emissions limit: 30 mg/Nm3 compliance.
- Electric vehicle adoption in logistics: 5% fleet.
- Net zero targets: 2050 by major players.
- Tyre-derived fuel usage: 0.3 MT in FY23.
- Biodiversity conservation areas: 10,000 ha.
Environmental and Sustainability Interpretation
India's cement industry is striving to become a circular economy champion, yet it remains a colossal carbon heavyweight, balancing its 8% share of the nation's emissions with a portfolio of genuinely impressive green innovations from afforestation to zero liquid discharge.
Exports and Imports
- India's cement exports in FY23 were 11.87 million tonnes, up 40% YoY.
- Cement imports into India FY23: 1.9 million tonnes, down 20%.
- Top export destination: Bangladesh with 3.5 MT in FY23.
- Sri Lanka imports from India: 2.1 MT cement in 2023.
- Nepal cement imports from India: 2.8 MT in FY23.
- UAE received 1.2 MT Indian cement exports FY23.
- Exports value FY23: USD 750 million.
- Clinker exports: 6.5 MT in FY23.
- Imports mainly from China: 0.8 MT in FY23.
- Myanmar exports from India: 0.9 MT FY23.
- April-Feb FY24 cement exports: 9.6 MT, up 25%.
- Indonesia imports Indian clinker: 1 MT annually.
- Export share in production: 3.1% in FY23.
- Duty on cement imports: 7.5% basic customs.
- South Asian exports: 70% of total Indian cement exports.
- Clinker export ban lifted partially in 2023.
- USA imports negligible: 0.1 MT from India FY23.
- Import substitution rate: 85% domestic production.
- Exports to Africa: 0.5 MT in FY23.
- Vietnam clinker imports from India: 0.7 MT.
- Export logistics cost: USD 30 per tonne.
- Imports growth projected negative in FY24.
- Bangladesh market share of Indian exports: 30%.
- Duty drawback on cement exports: 0.85%.
- Middle East exports: 15% of total FY23.
- Cement export terminals: 5 major ones operational.
- India's clinker exports to Philippines: 0.4 MT FY23.
- Import from Pakistan: minimal at 0.05 MT.
- Export promotion councils support: EPPC.
- FY22 exports were 8.42 MT.
Exports and Imports Interpretation
India’s cement industry has firmly pivoted to Asia, building a formidable export fortress while letting its own import drawbridge rust nearly shut.
Financial and Economic Indicators
- Indian cement industry market size reached USD 17.80 billion in FY23.
- Cement sector revenue grew 12% to Rs 1.6 lakh crore in FY23.
- EBITDA margins for cement firms averaged 18.5% in FY23.
- UltraTech Cement revenue FY23: Rs 57,000 crore.
- Industry net debt to EBITDA ratio: 2.8x in FY23.
- Cement prices rose 10% on average in FY23.
- Total industry capex in FY23: Rs 12,000 crore.
- RoCE for top cement cos: 15% in FY23.
- Logistics cost in cement: 16% of total expenses FY23.
- Power cost share in production: 30% in FY23.
- Raw material costs down 5% YoY in FY23 due to petcoke prices.
- Cement exports realisation: USD 50 per tonne in 2023.
- Tax collections from cement industry: Rs 20,000 crore GST in FY23.
- Market cap of top 10 cement firms: Rs 5 lakh crore in 2023.
- Dividend payout ratio average: 25% in FY23.
- Fuel cost per tonne: Rs 1,200 in FY23.
- Employee cost: 3% of total expenses in industry.
- Profit after tax growth: 25% for sector in FY23.
- Debt reduction: Rs 10,000 crore by major players FY23.
- Average realisation per tonne: Rs 6,200 in FY23.
- Royalty payments to states: Rs 5,000 crore annually.
- Forex earnings from exports: USD 1 billion in FY23.
- Insurance premiums for industry: Rs 2,000 crore.
- R&D spend: 0.5% of revenue in leading firms.
- Stock turnover ratio: 1.2x for cement equities.
- EV/EBITDA multiple: 12x for sector in 2023.
Financial and Economic Indicators Interpretation
The Indian cement industry, a sturdy behemoth, is building a solid foundation of profitability—evidenced by its 18.5% margins and 12x valuations—but remains tethered to the volatile economics of power and logistics, which together claim nearly half its costs.
Production and Capacity
- India's total cement production capacity stood at 556 million tonnes per annum (MTPA) as of March 2023, with private sector accounting for 96% of the total.
- In FY23, cement production in India was 378.9 million tonnes, up 9.2% from 347.33 million tonnes in FY22.
- Southern region holds 34% of India's total cement capacity at 189 MTPA in 2023.
- UltraTech Cement, largest producer, had a capacity of 130.79 MTPA as of FY23 end.
- India's cement production grew at a CAGR of 6.5% from FY18 to FY23.
- Eastern region cement capacity was 120 MTPA in 2023, contributing 22% to national total.
- During April-February FY24, cement production reached 307.3 million tonnes, up 11.2% YoY.
- India's clinker production in FY23 was 284 million tonnes.
- Capacity utilisation in Indian cement industry averaged 74% in FY23.
- Over 200 cement plants operate in India with more than 210 large cement plants.
- Northern region cement capacity at 130 MTPA, 23% of total in 2023.
- FY22 cement production was 347.33 million tonnes, 11% growth over FY21.
- Top 5 cement companies control 54% of India's installed capacity in 2023.
- India's cement grinding capacity expanded by 15 MTPA in FY23.
- Central region capacity 65 MTPA, 12% share in 2023.
- Monthly cement production in March 2023 was 31.95 million tonnes.
- India ranks 2nd globally in cement production with 378 MT in 2023.
- Western region capacity 52 MTPA, 9% of total.
- New capacity additions planned: 60 MTPA by FY25.
- Portland cement accounts for 70% of total production in India.
- Clinker capacity utilisation at 78% in FY23.
- India has 1.3 billion tonnes of limestone reserves for cement.
- 55 integrated cement plants and 140 grinding units in operation.
- Capacity in Rajasthan state: 80 MTPA, largest single state.
- FY21 production dipped to 313 MT due to COVID.
- Blended cement production: 45% of total in FY23.
- Planned capacity addition in South: 20 MTPA by 2025.
- Ordinary Portland Cement (OPC) production: 120 MT in FY23.
- Cement production cost per tonne: Rs 4,500 in FY23.
- Total kilns in operation: over 200 across India.
Production and Capacity Interpretation
For a nation that's building everything from skyscrapers to statues at a breakneck pace, it's both a testament to private sector ambition and a sobering reminder of underutilized potential that, while India's cement industry boasts a colossal 556 MTPA capacity and proudly ranks second globally, it still ran its plants at only 74% efficiency last year.
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