India’s construction sector is witnessing unprecedented boom over the last three years. The reasons: Increase in Foreign Direct Investment flowing into this country for opening new industries under the ‘Make In India’ initiative and rapid development of the nation’s industrial and civil infrastructure including seaports, airports, roads, flyovers and highways, among others.
Indubitably, such development involves the gargantuan use of cement- the main material for a majority of structures. Thankfully, India has a highly developed and flourishing cement industry that thrives on indigenous raw material and abundant manpower.
Cement Facts of India:
India is the world’s second-largest producer in the market for cement in the world, according to studies and reports released by Construction and Real Estate Developers Association of India (CREDAI), India Brand Equity Forum (IBEF) and German statistics provider, Statista and other sources.
India’s cement production capacity stood at nearly 420 million tons, in July 2017.India’s cement production capacity is expected to reach 550 million tons by 2025. The industry has around 65 companies having around 260 cement plants.
Top 10 Cement Companies in India:
ACC Limited was established in 1936 as Associated Cement Company of India by entrepreneur FE Dinshaw. It was formed by a conglomerate of 10 independent and small cement manufacturers operating during that era. ACC is now the largest cement producer in India.
Further, it is also one of the biggest customers of the domestic coal industry and one of the biggest clients for freight for Indian Railways. “ACC plants, mines and townships visibly demonstrate successful endeavours in quarry rehabilitation, water management techniques and ‘greening’ activities. Presently, it has about 16 cement works plants across the country,” states the company website.
2. Birla Cement Ltd
Birla Cement Ltd is one of the oldest companies in India and manufactures different varieties of cement including Ordinary Portland Cement (OPC), 43 and 53 grades, Portland Pozzolana Cement (PPC), Fly Ash-based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement.
This is marketed under brand names of Birla Cement Samrat, Birla Cement Khajuraho, Birla Cement Chetak and Birla Premium Cement, bringing the product under the common brand of Birla Cement. Only Birla Samrat Cement retains its niche identity, being a blended variety of the commodity. The company has seven cement producing plants based in Madhya Pradesh, Uttar Pradesh, Rajasthan and West Bengal.
3. Andhra Cements Ltd
Andhra Cements Ltd ranks as India’s third largest cement producer in the country. The group’s cement facilities are located in the Satna Cluster in Madhya Pradesh which has one of the highest cement production growth rates in India, according to the website of its parent company.
The group produces a special blend of Portland Pozzolana cement marketed under the brand Jaypee Cement. Andhra Cements Ltd operates modern, computerized process control cement plants across India.
4. JK Cement Ltd
JK Cement has over 45 years experience in cement production, having entered the industry in May 1975. The company began with a single cement production unit at Nimbahera, Rajasthan. Today it ranks among the topmost cement manufacturers of India and produces a variety of this essential building material.
JK Cement was the first company to install a captive power plant, in 1987 at Bamania, Rajasthan. It is also the first cement company to install a waste heat recovery power plant to take care of the need of green power. Today, at its different locations, the company has captive power generation capacity of over 100 megawatts (MW).
5. The India Cements Ltd
The India Cements Ltd was founded in the year 1946 by two entrepreneurs, S N N Sankaralinga Iyer and T S Narayanaswami. In 1989, TICL had a capacity of 1.3 million tons. Today, the company is one of the leading and most reputed cement producers of India.
TICL has acquired Trinetra Cement Ltd and Trishul Concrete Products India Cements has nearly a dozen integrated cement plants in Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan and two grinding units, Tamil Nadu and Maharashtra.
6. Ramco Cements Ltd
Ramco Cements Limited is a flagship company of the renowned, Chennai-based Ramco Group. It was established in 1961 as Madras Cements Ltd. RCL’s mainstay is Ordinary Portland cement, produced at manufacturing facilities that include integrated cement plants and grinding units with a current total production capacity of 16.45 Metric Tons Per Annum (MTPA) The company is the fifth largest cement producer of India and also produces Ready Mix Concrete and dry mortar products.
RCL operates one of the largest wind farms in the country. It has four satellite grinding units, located at Chengalpattu and Salem in Tamil Nadu, Kolaghat in West Bengal and Vizag in Andhra Pradesh. The aggregate grinding capacity of these plants is four million tons per annum.
7. UltraTech Cement Ltd
UltraTech is the most advertised brand of cement in India under the slogan “Engineer’s Choice.” It is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India and ranks among the world’s leading producers.
Information available on the company’s website states, it has an installed capacity of 93 Million Tons Per Annum (MTPA) of grey cement, made possible through 18 integrated plants, one clinker processing mill, 25 grinding units and seven bulk terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri Lanka.
UltraTech Cement is also India’s largest exporter of cement with exports to countries in the Indian Ocean and the Middle East. With over 100 Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is the largest manufacturer of concrete in India. It also has a slew of speciality concretes for critical uses.
8. Orient Cement
Orient Cement is part of the CK Birla Group of companies.. Orient Cement’s plant situated at Devapur in Adilabad District, Telangana, began cement production in the year 1982. In 1997, a split-grinding unit at Nashirabad in Jalgaon, Maharashtra was added.
In 2015, On its website, Orient Cement states, it started its commercial production at its integrated cement plant located at Chittapur, Gulbarga, Karnataka. With a total capacity of 8 MTPA, and ambitious expansion plan, Orient Cement is aspiring to reach 15 MPTA by 2020. The product mix includes Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC) sold under the brand name of Birla A1.
9. Binani Cement Ltd
Binani Cement Limited is a company from the Braj Binani Group. It is a major player in India’s cement industry since 1997. The company’s website pegs Binani Cement’s production capacity at 6.25 MTPA and 70 MW captive power plants. Binani Cement Ltd manufactures Ordinary Portland Cement and Pozzolana Portland Cement marketed under the brand ‘Binani Cement.’
Binani Cement Limited now has operations in the United Arab Emirates and China. Additionally, its products are exported to UAE, Sudan, South Africa, Tanzania, Madagascar and Namibia, among other countries. Within India, Binani Cement Ltd sells its products through a network of some 5,000 authorized distributors covering every part of the country.
10. Prism Cement
Also among 10 topmost cement companies of India ranks Prism Cement. The company began production at in August 1997. Prism Cement manufactures Portland Pozzolana Cement (PPC) marketed under brand names Champion and Champion Plus. Additionally, the company also manufactures premium quality cement sold under Hi-Tech and ‘Duratech brands.
Prism Cement has the highest quality standards due to efficient plant operations with modern state of the art automated controls. It caters mainly to markets of Eastern UP, MP and Bihar, with an average lead distance of 406 km for cement from its plant at Satnain Madhya Pradesh. It has a wide marketing network with about 4,180 dealers serviced from over 170 stock points, says the company website.
NOTE: A few cement manufacturers in India are subsidiaries of large foreign conglomerates. Companies listed above are indigenous ventures. Further, the above list does not signify rankings, sales, popularity or financial standing of any cement company whatsoever. The listing is purely random.
Cement and India:
India’s large cement industry is a source of livelihood to millions of citizens. Additionally, the cement industry contributes billions of Rupees in revenue to Indian Railways- the largest carrier of loose cement and bags. Thousands of truck owners also profit from the carriage of this vital building material across India.
Further, cement from India has played a vital role in building infrastructure for various world events, including the Asian Games held in Doha, Qatar in 2006 as well as Beijing Olympics 2008, reconstruction efforts of war-torn Iraq and various other disaster zones worldwide. India’s large construction industry, however, remains the largest consumer of cement produced in this country.
Future Prospects for Indian Cement
According to reports published by various industry guilds and organizations, India’s realty sector will witness a construction boom and will add some eight million jobs by 2025 driven by initiatives like new real estate regulatory law and the Goods and Services Tax.
According to realtors’ body CREDAI and consultant CBRE’s joint report ‘Assessing the Economic Impact of India’s Real Estate’, the contribution of real estate sector in the country’s GDP is expected to double at 13 percent by 2025. “The potential employment opportunities in the real estate sector are expected at 17.2 million jobs by 2025 up from 9.2 million in 2016.
The anticipated growth in India’s cement consumption can be gauged from the following figures released by Statista.“ In the 2017 financial year, India consumed 270 million metric tons of cement. In the past five years, the cement production in India grew from 207 million metric tons in 2010 up to 407 million in 2017, making it the second largest cement producer globally. With construction expenditures of around US$ 427 billion, India is fourth largest construction market worldwide,” it states.
This means, another boom-time for India’s already bustling cement industry. Shares of Indian cement companies listed on Bombay Stock Exchange and National Stock Exchange are already trading at premium prices.