The last decades has experienced lots of development in the incredible capability of the production of cement and its utilization in India. India is recognized as one of the largest cement producers in the globe. We are very hopeful that the future this country will secure a stronger place in this field. Lots of market analysts are predicting a large push up for the cement industry later in the half of this decade.
Looking at the story so far, we can think that the predictions were not false. For an instance, CapEx database of CMIE suggests that a progressive capability of a huge 68.5 mtpa (million tonnes per annum) is condemned for the completion in times of 2015-18”. A vast part of this enhancement in the capacity of production (more than 60%) has been achieved already.
Since the year 2015, 40.5 mtpa has been added to the capacity of India. An extra 18.1 mtpa of capability is in the advancement of being installed by the completion of this fiscal year. The remaining capability of 10 mtpa will come over the forthcoming year.
At present, the total outstanding capacity for cement in India is only a little over 400 mtpa. With such new uplift, that capability will be improved to a total of 474 mtpa around the next couple of years. The total funding of such “boost projects” calculated to be a massive Rs 27,960 crore and it is involved with both the public as well as private sectors.
Actually, a vast part of the particular push comes due to the helpful government policies and the active role of the State in enabling the growth of infrastructure. In this way, driving up the demand for cement is occurring.
The push for Housing of governments (through Pradhan Mantri Gram Sadak Yojna) and Roadways (through Pradhan Mantri Awas Yojana) have been one of the major generators involved with demand at recent times.
According to the report of the Economics Times, almost 38 per cent as well as 23 per cent increase in the funds’ allocation in the direction of the housing sector and expending of the Ministry of Road Transport and Highways to Rs 290 billion as well as Rs 649 billion respectively, will enhance cement demand in the forthcoming fiscal [year]
Numerous corporates have stepped up their activity for fulfilling the increasing demand. As an example, UltraTech Cement has completed two projects and about to finish four more by the upcoming year. Running over Karnataka, Bihar, Rajasthan, and Maharastra, such plants will enhance the net outstanding of the company by 12.4 mtpa.
Reliance Cement Co. that is working out of Yavatmal (nestled in Maharastra) has added 8.5 mtpa of manufacturing capacity over the last three years. They are making a plan to add 5 mtpa extra through the addition of a new plant in the Indian State, West Bengal.
This development story might be continuing into the upcoming years. The economy of the country is powerful. According to the Economic Times, it is expected that the domestic cement industry will grow at 4 to 5 per cent Y-o-Y in FY18.