By Nick Gilbert
Research and Markets has included a new report, "Indian Cement Industry Outlook: Business Opportunities and Future Growth Potential to 2016", to its collection. After China, India is recognized as the second-largest producer of cement globally.
The Indian cement industry rose in rating by a compound annual growth rate (CAGR) of 13.14% during the survey period 2007-2011. It is forecast to grow at a CAGR of 10.64% during the survey period 2012-2016. This growth is ascribed to a surge in residential and commercial constructions in the country and also to the government¡¦s high degree of infrastructure expenditure.
The Indian government spent US$500 billion on infrastructure during the Eleventh Five-Year Plan (2007-2012) and intends to spend US$1 trillion more on infrastructure during the Twelfth Five-Year Plan (2012-2017). The high level of investment on numerous infrastructure ventures such as roads, bridges, railways and ports is expected to hike the demand for cement during the forecast duration. Factors such as shorter timeframes for builders to complete projects, dearth of labor, space restrictions in urban regions, increasing need for mechanization, and backlog of infrastructure undertakings are pushing the increased use of ready-mixed concrete in India.
The cement companies considered in the report are Holcim, Aditya Birla Group, Jaypee Cement, ACC Limited, Lafarge, UltraTech Cement Limited, Ambuja Cements and Jaiprakash Associates.