INDIAN CEMENT INDUSTRY

Indian is the world’s second largest producer of cement after China with industry capacity of over 200 million tons (MT) with the boost given by the government to various infrastructure projects, road network and housing facilities growth in the cement consumption is anticipated in the coming years. In order to meet the expanding demand cement companies are fast developing new plants. The cement industry is poised to add 111 MT of annual capacity by the end of 2009-10 (FY 2010), riding on the back of approximately 141 outstanding cement projects.

According to a report by the ICRA industry Monitor, the installed capacity is expected to increase to increase to 241 MTPA by FY 2010 end Indian’s cement industry is likely to record an annual growth of 10 per cent in the coming years with higher domestic demand resulting in increase capacity utilization.

Capacity and production:

The cement industry comprises of 125 large cement plants with an installed capacity of 148.28 million tones and more than 300 mini cement plants with an estimate capacity of 11.10 million tons per annum. The cement corporation of India which is a central public sector undertaking has 10 units. There are 10 larger cement plants owned by various state governments. Actual cement production in 2002-03 was 116.35 million tones as against a production of 106.90 million tons in 2001-02 registering a growth rate of 8.84%.

Keeping in view the trend growth of the industry in previous years, a production target of 131 million tones has been fixed for the year 2008-09. During the period April to June 2009, a production (provisional) was 31.30 million tones. The industry has achieved a growth rate of 4.86 per cent during this period.

Exports:

Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was 5,14 million tones and 6.92 million tones respectively. Export during April-May, 2003 was 135 million tones. Major exporters were Gujarat Ambuja cements Ltd And L & T Ltd.

Salient features of Indian cement Industry

• Indian cement industry is the second largest in the world an installed capacity of 135 MTPA. It accounts for nearly 6% of the world production.
• There are 124 large plants and around 365 mini plants. The industry presents a mixed picture with many new plants that employ plants having wt process kilns.
• Production from large plants (with capacity above 1 MTPA) account for 85% of the total production.
• The cement industry has achieved significant progress in terms of reducing the overall energy intensity.
• Dry process plants that the weighted average thermal energy consumption was 734 k Cal/kg. Clinker and weighted average electrical energy consumption was 89 kwh/tone of cement. The best energy consumption is 692k Cal/kg Clinker and 66 KWh/ton of cement.