Report: India's Cement Industry to Add Capacity by 2028

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Researched by Industrial Info Resources (Sugar Land, Texas)--India's cement industry is poised for rapid growth, as it plans on adding 150-160 million tonnes per annum (MTPA) of capacity in the next five fiscal years, through expanding capacity at big plants as well as consolidating smaller plants.

According to India Brand Equity Foundation (IBEF), a trust established by the Ministry of Commerce and Industry (GOI), India was the second-largest cement producer in the world and accounted for over 8% of the global installed capacity in 2023. Driven by the growth in residential, commercial and industrial infrastructure, the demand for cement is estimated to touch 419.92 million tonnes in India by FY27.

In the past five fiscal years, the industry has added 119 MTPA of capacity, reaching a current aggregate of 595 million tonnes. A capacity of 70-75 million tonnes is expected to be commissioned in 2025, 50-55% of which will be concentrated in India's eastern and central regions.

As Indian cement makers add new facilities as well as ramp up acquired ones to increase capacity, the sector is expected to observe an upswing in investments.

Industrial Info is tracking this growth with 324 active cement plants in India, most of which are operating in Andhra Pradesh (34), Rajasthan (29) and Tamil Nadu (28). Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Databases can click here for a full list of plants.

IIR also is tracking 719 active capital-spending projects in India, worth US$39 billion, that are geared toward cement manufacturing/works facilities. Subscribers to the GMI Project Database can click here for a full list of projects.

Rajasthan dominates the Indian market with a standalone market share of 22% and an investment value of US$8.5 billion across 100 projects. It is followed by Maharashtra with a total spend pipeline of US$4.6 billion across 16 projects. Madhya Pradesh and Karnataka also drive significant investment with US$3.8 billion each.

Adani Group (Gujarat, India), JSW Group (Mumbai, Maharashtra), RK Marble Private Limited (Ajmer, Rajasthan) and Aditya Birla Group (Mumbai, Maharashtra) are the top players in the market, having a combined project spending of US$20 billion and a market share of 52%.

With 78.5% of the investment in the planning stages, 15.4% in engineering and 6% under construction, most of these projects are expected to be completed by December 2025, while the rest will reach fruition by April 2029.

India's cement industry is anticipated to remain solid as 108 plants are expected to start operations by 2028. A majority of these plants will set up base in Madhya Pradesh (16), Andhra Pradesh (13) and Rajasthan (11), kicking off in 2025.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).