Indian cement majors’ market share to shrink post 2010

Indian cement majors’ market share to shrink post 2010
05 September 2008

Four top Indian cement manufacturers – ACC, Ambuja Cement (ACL), Grasim and UltraTech – will see a dip in their market share post 2010, when expanded capacities of all cement manufacturers go on-stream. Experts believe that the total market share of the four majors, which now stands at 39%, will drop to about 34% due to aggressive capacity expansion by other players like India Cements, Shree Cement and Binani, among others.

"Moreover, small companies and regional players are also increasing their footprint by entering other regions. This is creating a fear among cement majors about losing market share," said Pawan Burde, an analyst with Angel Broking. Among the top four cement manufacturers, ACC plans to expand its capacity to 30.4Mtpa, ACL to 25Mta and Grasim, including UltraTech, to 48.8Mta by 2010. This will take the production capacity of these companies taken together to about 104.2Mta against the expected industry capacity of 300Mta.
Source: Financial Express
Published under Cement News