How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Business.

How to Start a Mini Cement Plant.

 How to Start a Mini Cement Plant..jpg


India is the second largest producer of cement in the world. No wonder, India’s cement industry is a vital part of its economy, providing employment to more

than a million people, directly or indirectly. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Some of the recent major initiatives such as development of 98 smart cities are expected to provide a major boost to the sector.

The most common use for cement is in the production of concrete. Concrete is a composite material consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete can be cast in almost any shape desired, and once hardened, can become a structural (load bearing) element.


Cement is indispensible for building and construction work and cement industry is considered to be an important infrastructure core industry. It is one of the most advanced industries of India. In a developing country like India, the cement industry can play a significant role in the overall economic growth.

  • Building (floors, beams, columns, roofing, piles, bricks, mortar, panels, plaster)
  • Transport (roads, pathways, crossings, bridges, sleepers, viaducts, tunnels, stabilization, runways, parking)
  • Water (pipes, culverts, kerbing, drains, canals, weirs, dams, tanks, pools)
  • Civil (piers, docks, retaining walls, silos, warehousing, poles, pylons, fencing)
  • Agriculture (buildings, processing, housing, feedlots, irrigation)

The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption in India. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at 9 per cent.

The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country. A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, with 365 small plants account for the rest. Of these large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.

Production of Cement (Million Tonnes)

Production of Cement (Million Tonnnes).jpg

India’s total cement production capacity is nearly 425 million tonnes. The growth of cement industry is expected to be 6-7 per cent in 2017 because of the government’s focus on infrastructural development. The industry is currently producing 280 MT for meetings its domestic demand and 5 MT for exports requirement. The country’s per capita consumption stands at around 225 kg.


Demand : Past and Future
Year (In Million Metric Tonne)
1990-91 45.80
2000-01 99.40
2001-02 102.50
2002-03 111.35
2003-04 117.50
2004-05 127.58
2005-06 147.80
2006-07 161.50
2007-08 180.00
2008-09 185.00
2009-10 192.40
2010-11 200.10
2011-12 220.25
2012-13 240.00
2013-14 252.70
2014-15 265.30
2015-16 385.60
2016-17 310.00
2017-18 335.75
2018-19 367.70
2019-20 400.00
2024-25 565.75

It accounts for 6.9% of the world’s cement output. India’s cement production capacity is expected to reach 550 million tonnes by 2025. The industry provides employment to more than a million people directly or indirectly.  In a country like India, the demand for cement is derived chiefly from the housing sector. One-fourth of the demand comes from the infrastructure sector and about 10-15% demand is generated from the commercial construction sector.

Consumption of Cement in India from 2009 to 2017 (In Million Metric Tons)

Consumption of Cement in India from 2009 to 2017 (In Million Metric Tons).png

The cement market is expected to soon witness an annual increase in demand, which could exceed supply, with the recent decline in capacity addition, especially in Asia Pacific (APAC) countries such as India. This may also prepare a platform for an imposing price appreciation in the future. However, new government regulations or changes in the nation’s financial system could affect the demand; for instance, the recent demonetization in India. Nevertheless, even with a small revival in the cement industry, the volume growth is anticipated to improve.

The cement industry immensely relies on construction and building activities. Concrete and mortar are two of the most common products in the construction industry that use cement as a major ingredient. Any escalation in the global construction or building activities will spur the market largely. Other factors that could influence the rise in the worldwide market include escalating number of nuclear families, rising need for accommodation, development in technology, and excessive disposable income.


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