Increasing Government Initiative Propelling Indian Cement Industry

“Adoption of cement instead of bitumen for the construction of new road projects is expected to drive the cement demand in future, says RNCOS”

India is the second largest producer of the cement industry which has undergone mergers and acquisitions, capacity addition in the past few years. With the potential for development in the infrastructure and construction sector, the cement sector is expected to largely benefit from the country. “Major government initiatives such as ‘smart cities’, ‘Housing for all’ etc. are expected to provide a major boost to the sector” as per RNCOS analysis.

“The housing sector in the country accounts for nearly 67% of the total cement consumption. Further, with the allocation of INR 23,000 Crore by the Finance Minister in 2017, the country has set a target of building 1 Crore houses by 2019” said, Shushmul Maheshwari, CEO – RNCOS. He added with the government’s thrust on infrastructure and housing, cement demand is expected to increase in the future.

According to RNCOS, the production and consumption of cement industry in the country is dominated by southern part of India with the largest concentration of plants in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu.

The Goods and Services Tax (GST) has also impacted the cement industry significantly with an increased rate of 28% from the previous 24%. The cement industry acts as backbone of the infrastructural development in the nation and the government has taken various initiatives to benefit the sector.

Also, in order to develop newer method for efficient cement production, India has joined hands with Switzerland which would help in reduction of energy consumption during the process while meeting its rising demand for cement in the infrastructure sector. Further, large number of foreign players has also entered the Indian market owing to profit margins and growing demand.

With more than a decade of experience in cement industry, RNCOS can act as a potential growth partner in all your business endeavors, be it product launching, geographic expansion, sales improvement, distributor/retailer tie-ups etc. We help make your business flourish by studying the market dynamics, collating with you business and devising the right strategies.

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