Powering the nation's skyscrapers, highways, and homes, India's cement industry is a colossal engine of growth, producing over 378 million tonnes annually while navigating a complex landscape of regional demand, ambitious expansion, and a vital shift toward greener operations.
Key Takeaways
- India's installed cement capacity stood at 557 million tonnes per annum (MTPA) as of March 2023, with 210 large cement plants accounting for 95% of total capacity.
- Cement production in India during FY 2022-23 was 378.5 million tonnes, reflecting a 9.2% increase from FY 2021-22.
- The top 5 cement producers in India accounted for 54.7% of total production in FY 2023, with UltraTech Cement leading at 102.7 MTPA capacity.
- Domestic cement consumption in FY 2023 reached 385 million tonnes, up 8% YoY.
- Urban infrastructure demand drove 45% of cement consumption in FY 2023.
- Per capita cement consumption in India was 270 kg in FY 2023, below global average of 590 kg.
- India's cement exports in FY 2023 were 11.5 million tonnes, valued at USD 0.75 billion.
- Cement imports into India dropped 45% to 2.1 MTPA in FY 2023 due to safeguard duties.
- Top export destinations for Indian cement: Bangladesh (40%), Nepal (25%), Sri Lanka (15%) in 2023.
- India's cement industry revenue from exports hit INR 6,500 crore in FY 2023.
- EBITDA margins for top cement firms averaged 18.5% in FY 2023.
- Total industry turnover was INR 1.8 lakh crore in FY 2022-23.
- India's cement industry CO2 emissions totaled 250 million tonnes annually in 2023.
- 78% of cement produced is blended, reducing CO2 by 20% vs OPC.
- Waste co-processing in kilns reached 4 million tonnes in FY 2023.
India's large cement industry is growing steadily to meet rising domestic demand.
Consumption and Demand
- Domestic cement consumption in FY 2023 reached 385 million tonnes, up 8% YoY.
- Urban infrastructure demand drove 45% of cement consumption in FY 2023.
- Per capita cement consumption in India was 270 kg in FY 2023, below global average of 590 kg.
- Housing sector accounted for 65% of total cement demand in 2023.
- Cement demand growth was 10% in Central India during FY 2023.
- FY 2022-23 cement despatches totaled 392 MTPA, indicating strong off-take.
- Road construction under Bharatmala project consumed 50 MTPA cement in 2023.
- Cement consumption in South India grew 7% to 105 MTPA in FY 2023.
- Affordable housing schemes like PMAY boosted demand by 20 MTPA annually.
- Industrial demand for cement rose 12% YoY to 45 MTPA in 2023.
- North India cement consumption was 110 MTPA in FY 2023.
- Cement demand elasticity to GDP growth is 1.5 in India.
- Rural housing demand contributed 25% to total cement consumption in 2023.
- Metro rail projects across 20 cities consumed 15 MTPA cement in FY 2023.
- Cement off-take in East India reached 75 MTPA, up 9%.
- Smart Cities Mission drove 10 MTPA incremental demand since 2015.
- Per capita consumption in urban India was 450 kg vs 150 kg rural in 2023.
- Airport expansion projects used 8 MTPA cement in FY 2023.
- Cement demand from irrigation projects was 18 MTPA in 2023.
- FY 2021-22 consumption was 356 MTPA, growing 10%.
- Defence infrastructure consumed 5 MTPA cement annually.
- Cement demand projected at 450 MTPA by FY 2025.
- Water supply schemes under Jal Jeevan Mission used 12 MTPA.
- Commercial real estate demand for cement was 30 MTPA in 2023.
- Cement consumption growth slowed to 5% in Q4 FY 2023.
Consumption and Demand Interpretation
While India's cement industry is robustly building its future, with housing forming its sturdy backbone and ambitious infrastructure projects its ambitious limbs, the fact that each citizen uses less than half the global average reveals a foundation of immense potential still under construction.
Environmental and Sustainability
- India's cement industry CO2 emissions totaled 250 million tonnes annually in 2023.
- 78% of cement produced is blended, reducing CO2 by 20% vs OPC.
- Waste co-processing in kilns reached 4 million tonnes in FY 2023.
- Water consumption per tonne of cement reduced to 100 liters in 2023.
- 95% of power from waste heat recovery in top plants.
- Fly ash utilization hit 80% of generated 200 MTPA by cement industry.
- TSR (thermal substitution rate) averaged 15% using AFR in 2023.
- Green cement production capacity is 100 MTPA with low-carbon tech.
- PM emissions controlled to 20 mg/Nm3 in modern plants.
- Solar power capacity in cement plants reached 500 MW by 2023.
- Limestone mining reclamation covered 70% of quarried areas.
- NOx emissions reduced 30% via low-NOx burners in 80% kilns.
- Green cement sales grew 25% to 50 MTPA in FY 2023.
- Zero liquid discharge achieved in 60% of cement plants.
- Petcoke usage down 10% due to sustainability shift.
- CSR spend on environment by cement firms was INR 1,000 crore.
- Biodiversity conservation in 50 mining leases.
- Energy intensity improved to 750 kcal/kg clinker.
- 100% fly ash from NTPC plants procured by cement sector.
- Carbon capture pilots in 5 plants sequester 10,000 tonnes CO2.
- Green hydrogen trials in kilns planned for 10% fuel mix by 2030.
- Dust suppression systems reduced fugitive emissions by 40%.
- Renewable energy share in cement power mix hit 20%.
- Hazardous waste utilization rate 100% in 40 plants.
- Afforestation on 10,000 hectares by cement miners since 2015.
- SOx emissions below 100 mg/Nm3 in compliant plants.
Environmental and Sustainability Interpretation
India's cement industry is aggressively chipping away at its carbon legacy, blending innovation with waste and water conservation to build a greener foundation for the future.
Financial Metrics
- India's cement industry revenue from exports hit INR 6,500 crore in FY 2023.
- EBITDA margins for top cement firms averaged 18.5% in FY 2023.
- Total industry turnover was INR 1.8 lakh crore in FY 2022-23.
- UltraTech Cement reported net profit of INR 7,000 crore in FY 2023.
- Cement companies' capex totaled INR 25,000 crore in FY 2023 for expansions.
- Average cement price realization rose 12% to INR 6,800/tonne in FY 2023.
- Debt-to-equity ratio for Indian cement sector improved to 0.45 in 2023.
- Adani Cement's revenue grew 50% to INR 15,000 crore post-acquisitions.
- ROCE for cement industry averaged 15% in FY 2023.
- Power costs constituted 25% of total cement production expenses in 2023.
- JSW Cement EBITDA was INR 1,200 crore on 10 MTPA capacity.
- Logistics costs for cement transport averaged INR 1,200/tonne in 2023.
- Market cap of top 10 cement firms exceeded INR 5 lakh crore in 2023.
- Raw material costs (limestone) rose 8% to 15% of total costs in FY 2023.
- Shree Cement net sales reached INR 18,000 crore in FY 2023.
- Interest coverage ratio improved to 8x for sector average in 2023.
- Dividend payout by cement majors was 25% of profits in FY 2023.
- Fuel costs (coal, petcoke) were 35% of opex at INR 2,500/tonne clinker.
- Ambuja Cements revenue post-merger hit INR 30,000 crore.
- Sector PAT grew 25% to INR 25,000 crore in FY 2023.
- Working capital days for cement firms reduced to 45 days in 2023.
- Tax rate effective for cement industry was 25% post-PLT.
- Capacity expansion funding via debt was INR 15,000 crore in 2023.
- EBITDA/tonne improved to INR 1,100 in FY 2023.
- Royalty payments to state govts totaled INR 5,000 crore for limestone.
- Insurance costs for cement plants averaged 0.5% of turnover.
- Cement industry FDI inflows reached USD 1.2 billion up to 2023.
- Average employee cost was INR 800/tonne produced in 2023.
Financial Metrics Interpretation
Despite cementing its status as a rock-solid pillar of the economy, the industry is clearly mixing profits with prudence, as hefty margins and record earnings are being carefully poured into ambitious expansions while navigating the gritty realities of soaring power, fuel, and logistics costs.
Production and Capacity
- India's installed cement capacity stood at 557 million tonnes per annum (MTPA) as of March 2023, with 210 large cement plants accounting for 95% of total capacity.
- Cement production in India during FY 2022-23 was 378.5 million tonnes, reflecting a 9.2% increase from FY 2021-22.
- The top 5 cement producers in India accounted for 54.7% of total production in FY 2023, with UltraTech Cement leading at 102.7 MTPA capacity.
- India's cement capacity utilization rate averaged 72% in FY 2022-23, down from 76% in the previous year due to demand fluctuations.
- Clinker production in India reached 278.9 million tonnes in FY 2022-23, supporting blended cement output.
- South India contributed 28% to national cement capacity with 156 MTPA as of 2023.
- Eastern region cement plants have a combined capacity of 112 MTPA, representing 20% of India's total.
- New cement capacity additions in FY 2023 totaled 15 MTPA, primarily from expansions by Adani Cement and JSW Cement.
- India's grinding capacity exceeded 600 MTPA by mid-2023, driven by import substitution.
- Portland Pozzolana Cement (PPC) accounted for 72% of total cement production in FY 2022-23.
- Ordinary Portland Cement (OPC) production was 45 million tonnes in FY 2023, mainly for high-strength applications.
- Cement production in Rajasthan state reached 35 MTPA in 2023, with 12 major plants operational.
- UltraTech Cement's total capacity hit 130 MTPA after acquiring assets in 2023.
- India's cement sector added 22 MTPA capacity in the last five years up to 2023.
- Capacity utilization in North India was 68% in FY 2023 due to oversupply.
- Clinker capacity in India was 460 MTPA as of 2023, with 90% utilization.
- Madhya Pradesh hosts 18 cement plants with 50 MTPA combined capacity in 2023.
- PSC (Portland Slag Cement) production grew 12% YoY to 28 MTPA in FY 2023.
- India's total cement plants number 210 integrated units as of 2023.
- Capacity expansion plans project 100 MTPA addition by 2030.
- Andhra Pradesh cement capacity is 40 MTPA from 15 plants in 2023.
- FY 2021-22 cement production was 346.1 MTPA, up 11% from prior year.
- Tamil Nadu's cement grinding units contribute 25 MTPA capacity.
- India's cement industry operates 55 grinding units alongside integrated plants.
- Gujarat cement production hit 22 MTPA in FY 2023.
- Blended cement production ratio reached 78% in 2023.
- Karnataka state cement capacity stands at 38 MTPA from 14 plants.
- Monthly cement production in March 2023 was 32.5 MTPA.
- Chhattisgarh has 12 cement plants with 28 MTPA capacity.
- India's cement production grew at CAGR of 6.5% from 2018-2023.
Production and Capacity Interpretation
India's cement industry is sitting on enough capacity to pave its way to the moon and back, yet it's currently only producing enough to seriously reconsider that trip, as a few giant players keep adding more concrete while the national utilization rate politely declines.
Trade (Exports and Imports)
- India's cement exports in FY 2023 were 11.5 million tonnes, valued at USD 0.75 billion.
- Cement imports into India dropped 45% to 2.1 MTPA in FY 2023 due to safeguard duties.
- Top export destinations for Indian cement: Bangladesh (40%), Nepal (25%), Sri Lanka (15%) in 2023.
- Clinker exports from India reached 6.8 MTPA in FY 2023.
- India's share in global cement exports is 5.2% as of 2023.
- Cement exports grew 15% YoY to USD 800 million in FY 2022-23.
- Major importers to India: Vietnam (1.2 MTPA clinker), Indonesia (0.8 MTPA) in 2023.
- India's cement trade balance showed surplus of 9 MTPA in FY 2023.
- Bangladesh imported 4.5 MTPA cement from India in 2023.
- Duty on cement imports hiked to 25% in 2023 to protect domestic industry.
- Clinker export price averaged USD 55/tonne FOB in 2023.
- India's cement exports to Nepal were 2.8 MTPA valued at INR 2,000 crore.
- Imports of grinding aids and additives for cement were 0.5 MTPA in FY 2023.
- Sri Lanka cement imports from India surged 30% to 1.7 MTPA post-crisis.
- Export-oriented cement units produced 15 MTPA for overseas markets in 2023.
- Myanmar received 1.2 MTPA Indian cement in FY 2023.
- Anti-dumping duties imposed on cement from China, reducing imports to 0.3 MTPA.
- India's clinker exports to Philippines were 0.9 MTPA in 2023.
- Cement export incentives under RoDTEP scheme reimbursed INR 150 crore in 2023.
- Total cement trade volume (exp+imp) was 13.6 MTPA in FY 2023.
- Exports to Africa totaled 0.5 MTPA, mainly South Africa and Tanzania.
- Import substitution saved USD 200 million in cement imports in 2023.
- Maldives imported 0.4 MTPA cement exclusively from India in 2023.
- Cement export growth projected at 10% CAGR to 2027.
- Bhutan exports 0.2 MTPA cement to India annually.
- Average cement revenue realization for exports was INR 5,200/tonne in 2023.
Trade (Exports and Imports) Interpretation
India is clearly building a sturdy trade surplus, selling mountains of cement to its neighbors while slamming the import door shut with higher duties, showing the world it prefers pouring foundations abroad over letting foreign concrete in.
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