Cement Industry and Construction Industry Profile

By | March 15, 2017

Cement & Construction Industry Profile

Characteristics of Indian cement industry are

  • Highly fragmented (low entry barriers)
  • Cyclical industry
  • Highly capital & energy intensive
  • Heavily taxed sector
  • High bulk (volume) low value product
  • Heavy dependence on 3 sectors viz. coal, power and transport
Cement & Construction Industry Profile

Cement & Construction Industry Profile

Market consolidation

Flurry of consolidation has happened in cement manufacture industry in the last couple of years. Notable acquisitions and merging include:
  • Gujarat Ambuja picking up 14% in ACC
  • Grasim acquiring cement business of
  • L & T forming Ultratech
  • Holcim taking minority stake in GACL and 67% stake in ACC
  • Heidelberg Cement acquiring 50% in Indorama Cement

Global outlook for cement & construction industry

Reasonable growth in construction sector in Brazil, Argentina, Mexico and the Middle East. All in all, a great decade ahead for the cement and construction industry fueled by massive Govt. spending and private infrastructure investments.