According to RNCOS’ recent research report “Indian Cement Industry Forecast to 2012”, the cement industry in India has emerged as a potential investment hub for international cement giants during the past few years. Even in the wake of economic slowdown, the industry sustained its blistering demand-supply pace and posted positive YoY growth during 2009-10. In view of housing sector developments and along with massive infrastructure projects, cement consumption is expected to advance at 10.6% CAGR growth during FY2011-FY2014, which is anticipated to strengthen long-term investment viability of the Indian cement industry.
The study identified that the housing sector is currently the prominent cement consumer and roughly accounts for over 50 per cent of the total cement consumption in the country. India is witnessing a boom in affordable and luxury housing, which is expected to intensify in coming years. The sector will remain the dominant consumer of cement during the forecast period.
Furthermore, it has been found that almost all cement industry players have either finalised their production expansion plans or are in the process of strategy development to speed up output during the next 3-4 years. The stable and fast-growing economy and government support is persuading industry majors to capitalise on strong cement demand from massive infrastructure projects. In coming years, the expanded capacity will not only enable players to tap the domestic demand, but will also increase their export considerations.