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- The Market Share Of Top 5 Cement Companies Of The Country Will Increase To 55 Percent
New Delhi2 minutes ago
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The market share of the country’s top five domestic cement manufacturers is projected to increase to around 55% by March 2025, according to rating agency Icra. Major companies operating in the cement sector have plans to increase their market share as well as capacity due to strong demand in the country. According to Iqra, the market share of the country’s top five companies increased to 54% as on December 2023, from 45% during March 2015, and is expected to further increase to around 55% by March 2025.
With organic growth expected in the medium term, cement companies are also adopting inorganic avenues to add capacity at a faster pace, which may lead to consolidation in the industry. All the mergers and acquisitions by the Adani group except ACC and Ambuja Cements were due to cash crunch in the acquired companies. India has a cement production capacity of 541 metric tonnes, according to data from the Cement Manufacturers Association.
In the Indian cement market, Aditya Birla Group company Ultratech Cement Limited is the most prominent, with a capacity of 152.7 million tonnes per annum. Next on the list is Adani Cement of the Adani Group which owns Ambuja Cement and its subsidiary ACC Ltd, which produces 77.4 million tonnes of cement annually. There are other companies like Dalmia Bharat, Shree Cements and JK Cement. According to the report, most of the cement produced in the country is consumed here and the surplus will be exported to nearby countries.
North and South states account for 75-85% of the market share
In southern states it may reach 50% by FY 2025. The share of North and Central India cement companies was around 65-75% in FY 2015 and it is estimated to be in the range of 75-85% by FY 2025. The credit profile of cement manufacturers is expected to remain stable in the near future.