It is estimated that there is 75% capacity utilization in this industry which means the annual industry volume is 180 MT per year. The industry is growing at 8% CAGR every year.
The sale price per bag of cement ( 1 Bag = 50 KG) is Rs.250 which makes the total industry size at today prices a whopping Rs. 90,000 Crores or USD 18 Billion! The top four companies, ACC, Ambuja Cement, Grasim and UltraTech (L&T) account for nearly 40% of this industry.
In terms of regional distribution, North, South, West, East & Central account for approximately 20%, 30%, 20%, 15% & 15% share of consumption respectively with the southern
and northern region showing maximum growth in recent times. The housing sector accounts for nearly 50% of this consumption.Commonly there are three types of cements. The Ordinary Portland Cement (OPC) that accounts for 70% of the total production and then there are the blended types like the Portland Pozzolana Cement (PPC) and the Portland Slag Cement (PSC).
Incidentally, The history of Portland Cement dates back to the time when it was found that by burning limestone containing clay and silica, a cementing agent was produced which hardened under water and after hardening was not soluble in water. This end product somewhat resembled the commonly available Portland stone in colour and character, hence it was named Portland Cement.
Limestone, Coal and Transportation costs are the major cost components in the manufacturing of cement.
For those who are interested - Each cement bag contains 50 Kg of cement and is transported in a railway rake where each each wagon accommodates 1040 bags of cement. which means throughout the year the cement industry requires 34,62,000 such wagons!!!
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The cement industry in India is witnessing high rate of growth due to the ever increasing demand for civic infrastructure.
according to experts The urban housing sector is expected to require investments to the tune of US$25 billion over the next five years..
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