Most of India is yet to be built. The residential towers, gated communities, commercial centers and super-expressways being constructed at a rapid rate across the country are but a harbinger of the explosion in infrastructure that is yet to come. What will build these buildings? Cement.
Today, India is the second largest producer of cement in the world and accounts for more than 7% of the global installed capacity. Aided by government policies, several foreign cement players have invested in the country in the recent past. The development of 98 smart cities is expected to provide a major boost to the sector, as is the massive budget allocations for affordable housing and highways in Tier II and Tier III cities.
Cement production in India reached 329 million tonnes (MT) in FY20 and is projected to reach 381 MT in FY22. As per Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest since the last 10 years. Higher allocation for infrastructure (34.9% in roads, 8.7% in metros and 33.6% in railways) in budget estimates of FY22, over FY21, is likely to boost demand for cement.
In the next 10 years, India could become the main exporter of clinker and gray cement to the Middle East, Africa, and other developing nations of the world. Cement plants near the ports, like the plants in Gujarat and Visakhapatnam, will have an added advantage for export. India’s cement production capacity is expected to reach a whopping 550 MT by 2025.
Where will these volumes be produced? In mega cement plants in the farthest corners of the country, near the natural resources needed for production. From dust control to using refuse-derived fuel, plant security to automation, what are some of the functions that they will need to entrust with FM service providers?