Cement Boom Ahead: ₹1.2 Lakh Crore Investments to Power India’s Growth by 2028!

New Delhi:
India’s cement industry is witnessing strong momentum, with demand growing steadily over the past three years at an average rate of 9.5% annually, according to credit rating agency CRISIL.

To meet this rising demand, companies are planning large-scale capacity expansions and the establishment of new plants. Over the next three years, the sector is expected to attract investments worth ₹1.2 lakh crore, which is 50% higher than the last three-year period.

CRISIL estimates that by 2028, India will add 160–170 million tonnes of additional grinding capacity — a 75% increase over the previous period’s 95 million tonnes. This would raise the country’s total installed capacity from 668 million tonnes to 828–838 million tonnes per annum.

Interestingly, 65% of this additional capacity will come from expansion of existing plants, meaning investment costs may not be as high as expected.

Around 10–15% of the total investment will go towards green energy projects and cost-reduction initiatives, helping cement companies manage fuel needs and control expenses. CRISIL also noted that the industry’s debt levels will remain stable, ensuring sustained profitability.

Growth Drivers

Increased spending on infrastructure and housing projects will be the key growth factors for India’s cement sector in the coming years. Giants like Ambuja Cements (Adani Group) and UltraTech Cement (Aditya Birla Group) have already begun major expansions — setting up new plants and acquiring smaller regional players to consolidate their market share.

As of March 2024, about 85% of India’s cement production capacity is concentrated within 17 major companies.
Historically, the industry operated at an average capacity utilization rate of 65%, which rose to 70% in the last fiscal year due to increasing demand.