Construction industry drives demand growth for cement
Cement consumption in India is expected to reach 450.78 million tons by the end of FY 2027 compared to 355.46 million tons in FY 2022 and 296 million tons in FY 2021, says a ResearchAndMarkets report on 23 Jan 2023.
The spurt in demand from sectors such as housing, commercial construction and industrial construction will lead to an increase in consumption, said the “Cement Industry in India 2022 – 2027” report.
The cement industry is mainly driven by the consequential number of construction activities with the growing demand and a surging need for residential complexes of urbanised population.
Furthermore, the construction of various infrastructure projects such as airports and roads, undertaken by the government in recent times, propels the market growth.
In September 2022, The Adani Group, acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for US$6.5 billion. With this acquisition, Adani Group became the second-largest cement maker in the country.
In the wake of the pandemic, production was affected due to intermittent lockdowns and restrictions on mobility. Construction activities were interrupted in Q4 FY 2021 and Q1 FY 2022 because of the second wave and this resulted in the decline of consumption.
However, because orders were put on hold, consumption volumes increased in the second quarter of FY 2022, said the report.
Significant market growth is expected over the forecast period because of higher infrastructure and developmental activities.
The report featured ACC Limited, Ambuja Cements Limited, J. K. Cement Limited, Jaiprakash Associates Limited – Jaypee Group, JK Lakshmi Cement Limited, Orient Cement, The Ramco Cements Limited, Shree Cement Limited, The India Cements Limited and UltraTech Cement Limited. fiinews.com
