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Poised for Growth

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In a country like ours, where many families still do not have a roof above their heads, and acute absence of infrastructure hobbles the manufacturing sector, and consequently, per capita consumption of cement is around a lowly 200 kg, potential growth of cement consumption is a given. That proposition is decidedly valid for the longer term, and this upward trend in consumption overrides the classical cyclic troughs and crests which are so very much typical of commodities like cement.

However, in the short term, transient market volatilities caused by seasonal cycles as well as economic lulls in investment worry us no end and keep the analysts mighty busy. This conundrum posed by the complicated interplay of all these factors, makes for interesting study.

We do know that both in terms of capacity and consumption, India has the distinction of being the second ranked country in the world, behind China. In fact, cement may be the only item or parameter, where India has the honour of being buttressed by China and USA on either side. But we also know at the same time, that this recognition matters little to the bottom line of Indian cement players, apart from the sheer reputational value and national pride this ranking imparts to us. Irrelevant as it may be in business terms, a report recently concluded that India’s share of the pie in the global cement marketplace (if there ever was one..!) was 24 per cent in 2018, and will move up to a highly reassuring 30 per cent by 2030. Since cement doesn’t travel well, at least not beyond 500-700 km, an integrated global cement market is a misnomer, a theoretical or imagined entity.

So, the Indian cement players will have to worry about our domestic, or even regional capacity overhangs, and regional trends of demand growth. They have to analyse projections of rural and urban consumption, investments forthcoming into infrastructure, and design their strategies around our domestic capacities and cost scenarios. Choices are continuously being made by our cement companies, between organic and inorganic routes of expansion. The simple truth about acquisition of existing capacity, albeit at a higher cost, is that this action helps increase one’s market share without adding to the excess capacity. On the other hand, Greenfield expansion of capacity can come at a lower cost, at a time and place of one’s choosing.

To make this discussion lively and interesting for our readers, we have put together contributions and views of reputed stakeholders, including some well-known names in the consulting space for cement sector. We do hope this bouquet of reports will give some new insights into an already crowded body of work on this subject.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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Concrete

AI boom drives demand, says ACA

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The American Cement Association projects a nearly 1Mt annual increase in US cement demand over the next three years, driven by the surge in AI data centres. Consumption by data centres is expected to grow from 247,000 tonnes in 2025 to 860,000 tonnes by 2027. With over 5,400 AI data centres currently operating and numbers forecast to exceed 6,000 by 2027, the association cautions that regulatory hurdles and labour shortages may impact the industry’s ability to meet demand.

Image source:https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zOrih.img?w=2000&h=1362&m=4&q=79

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Concrete

GoldCrest Cement to build plant in India

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GoldCrest Cement will build a greenfield integrated plant with a 3.5Mt/yr clinker capacity and 4.5Mt/yr cement capacity. GoldCrest Cement appointed Humboldt Wedag India as engineering, procurement and construction contractor in March 2025 and targets completion by March 2027. It has signed a 40-year supply agreement with Gujarat Mineral Development Corporation for 150Mt of limestone from its upcoming Lakhpat Punrajpur mine in Gujarat.

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