Cement - Major

India is the second largest cement producer in the world. However, it is way behind China, where the capacity is more than five times larger. Cement is a low-value and high-volume commodity and is mainly concentrated near limestone deposits available in few States. It has a high rate of excise duty and accounts for 5% of total excise duty collection. During ... more »

India is the second largest cement producer in the world. However, it is way behind China, where the capacity is more than five times larger. Cement is a low-value and high-volume commodity and is mainly concentrated near limestone deposits available in few States. It has a high rate of excise duty and accounts for 5% of total excise duty collection. During the Tenth Plan, cement production grew at a healthy CAGR of 8.67% while the installed capacity showed modest CAGR of 3.69%. Exports too showed an upward trend. Cement consumption has generally grown at 2%�3% higher than growth of GDP. Keeping the past trends in view and taking into consideration the renewed emphasis on infrastructure, the cement industry can be expected to grow at about 11.5% corresponding to the GDP growth of 9%. The major raw material required is limestone gypsum, coal & power. India is having a huge deposit of limestone. But it is more important to know that in which region it is available. Limestone is the main raw material required for manufacturing cement. For manufacturing 1 tonne of cement 1.5 tonne of limestone is required, it is available across the country but the 70% concentration is in Andhra Pradesh, Karnataka, Gujarat, Rajasthan and Madhya Pradesh. Gypsum is another important material which is required along with clinker. Consumption of gypsum is around 5 to 8%. India has a good availability of gypsum especially in the state of Rajasthan, Gujarat and Tamil Nadu. At present, 60% of coal requirement of the cement industry is met through linkages and fuel supply agreements, while the remaining requirement is met from open-market purchases, import, and use of petroleum coke. Most of the cement units have installed captive power generation capacities to the extent of 60% to 100% of their requirement. Ordinary Portland cement is currently used in the government/public sector for most of the construction activities. hide «