Cement demand in India to touch 550 - 600 million tpa by 2025: CII
Confederation of Indian Industry (CII) report forecasts cement demand in the range of 550 - 600 million tpa by 2025 for India. The report attributes factors such as growing urbanization as the driving force for cement demand mainly for housing. Besides this, India continues its bid to develop its infrastructure on a massive scale thereby creating more avenues for cement consumption. The CII report states that considerable capacity addition will be required in the cement sector to meet this demand and government support will be critical for forward movement. The cement industry contributes more than 5% of India's fiscal revenue and employs more than 1 million people directly and indirectly. The per capita cement consumption remains low in India compared with the rest of the world providing scope for growth. Ready-mix cement share is less than 10% of total cement demand; most of the cement sales is through bags, with retail sales of cement accounting for 60 - 65% of cement demand. Indian cement production has moved from OPC to blended cement over the last 15 years. This has considerably increased the consumption of large amounts of industrial waste, such as flyash and slag, and reduced carbon footprints. Growing scale and improved technology has led to cost-efficiencies as well as greater thermal and energy efficiency. Labour productivity has also improved.