Cement Industry Consolidates as Demand Surges, Top 10 Firms Expand Capacity by 140 MMTPA

Unknown Apr 02, 2026 1,450 Views

India’s cement sector is undergoing rapid consolidation as leading producers scale up capacity to meet growing demand. Moody’s Ratings reports that the top 10 cement firms have collectively added 140 MMTPA over the past five years, driven by infrastructure expansion and rising housing...

Major Trends in Cement Industry Growth

- Industry consolidation is accelerating, with large players acquiring smaller regional producers to strengthen market presence.

- UltraTech and Ambuja, India’s top two cement producers, are leading the expansion, contributing nearly 30 percent of the new capacity.

- Shree Cement and Dalmia Bharat are adding 50 MMTPA, accounting for 25 percent of upcoming capacity increases.

- Smaller firms such as JK Cement, JSW Cement, and JK Lakshmi Cement are nearly doubling their existing capacity, representing 35 percent of the announced expansions.

Regional Impact and Market Dynamics

- South India, with an installed capacity of over 200 MMTPA, remains the largest cement-producing region, followed by the north and east, each with around 150 MMTPA.

- The industry’s capacity utilization is expected to remain stable, supported by steady demand growth.

- India’s per capita cement consumption stands at 260 kg, significantly lower than the global average of 540 kg, indicating room for further expansion.

Future Outlook and Investment Trends

- Cement consumption in India is projected to grow at a compound annual rate of 6 to 7 percent through the end of the decade.

- Government-led infrastructure projects and urban housing developments are expected to drive sustained demand.

- The industry is set to expand capacity by a third in the next five years, with 170 MMTPA of new capacity expected by FY27-28.

India’s cement sector is poised for continued growth, with leading firms strategically positioning themselves to capitalize on rising demand.

Sources: Rediff Money, The Week, Moody’s Ratings.

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Cement Industry Consolidates as Demand Surges, Top 10 Firms Expand Capacity by 140 MMTPA

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