Concrete

Global cement market to reach $592.38 bn by 2032, growing at 4.3% CAGR

The profitability of the Indian cement sector has been under pressure.

Published

2 years ago

November 27, 2024

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The global cement market, valued at $405.99 billion in 2023, is forecasted to grow to $423.24 billion in 2024 and $592.38 billion by 2032, registering a compound annual growth rate (CAGR) of 4.3 per cent, as indicated in a report by Infometrics Ratings.

The World Cement Industry Outlook suggests that global cement consumption is likely to recover modestly, with growth estimated between one and two per cent.

In India, cement production volumes experienced a decline during the June 2024 quarter, primarily due to extreme heat and a slowdown in construction activities associated with elections. This led to subdued demand, with most manufacturers reporting reduced volumes, though a few major companies performed better.

Construction activities, however, are expected to accelerate in the September 2024 quarter, with cement consumption projected to grow by 4.1 per cent. Despite this seasonal improvement, pricing challenges persist. Cement prices, which were weak in the June 2024 quarter, are anticipated to face rollbacks despite an increase in September, driven by continued demand softness.

Regional price trends reveal significant variations, with the southern region experiencing the steepest declines. Nonetheless, prices remain one to two per cent higher than the previous year.

The profitability of the Indian cement sector has been under pressure, attributed to lower price realisations and rising input costs. Although sales volumes are expected to rise compared to the previous year, revenue growth is likely to be constrained due to reduced realisations. Operating profit margins shrank by 60 basis points to 14 per cent during the June 2024 quarter.

The cement industry plays a vital role in India’s infrastructure development, benefiting from the government’s allocation of Rs 11.11 trillion for capital expenditure in FY2024-25. Real estate and public infrastructure projects, which are significant drivers of cement consumption, are projected to sustain demand. Initiatives such as the Pradhan Mantri Awas Yojana and increased investments in highway and metro projects are also expected to support the sector’s growth.

Additionally, the Indian cement industry is addressing its substantial carbon footprint, which accounted for 5.8 per cent of the country’s CO2 emissions in 2022. In 2023, greenhouse gas emissions were reduced to 0.56 tonne of CO2 per tonne of cement, with a target to lower this further to 0.35 tonnes by 2050. Initiatives such as the Low Carbon Technology Roadmap (LCTR) and the Perform, Achieve, and Trade (PAT) Scheme highlight the sector’s commitment to sustainability.

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Concrete

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

1 day ago

September 17, 2026

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

Concrete

Centre Defers Clearance for Limestone Mine Near Bustard Habitat

Panel seeks revised mining plan and safeguards for pipelines and wildlife

Published

2 days ago

September 16, 2026

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The Centre has deferred environmental clearance for a proposed limestone mine near a Great Indian Bustard habitat in Ramgarh, Rajasthan’s Jaisalmer district. The critically endangered species has an estimated wild population of about 130 in India.

Concrete

Telangana to Supply Subsidised Cement for Indiramma Houses

Poor families allotted Indiramma houses to receive cement at Rs. 230 per bag

Published

2 days ago

September 16, 2026

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The Telangana government will supply cement at a subsidised price of Rs. 230 per 50-kg bag to poor and low-income families allotted Indiramma houses. The prevailing market price is between Rs. 310 and Rs. 320 per bag, the Assembly was informed on Thursday.