Cement is a crucial binding agent that is used in the construction industry. It is essentially a fine powder made from limestone, clay, and other materials, which is then mixed with water to create a paste that hardens and binds materials like sand, gravel, and crushed stone together to form concrete.
Cement is a versatile and essential component in the construction industry. It is used in a variety of applications including the construction of roads, bridges, buildings, and infrastructure projects. Without cement, the construction industry as we know it would not exist. It is a vital material that holds everything together, making it strong and durable.
Benefit of Starting Cement Plant
ü High Demand for Cement: The construction industry heavily relies on cement, and its demand continues to increase due to population growth, urbanization, and infrastructure development. Starting a cement plant ensures a constant flow of customers, making it a profitable investment.
ü Minimal Competition: There are few cement plants worldwide, which means that the competition in the market is not too high. This creates a good opportunity for entrepreneurs to establish themselves as a reliable supplier of cement in the market.
ü Low Operating Costs: Running a cement plant involves low operating costs, making it a great investment for entrepreneurs who want to maximize their profits. Most of the plant's operations are automated, requiring minimal manual labor.
ü Environmentally-Friendly: Cement plants have been adopting environmentally-friendly technologies, which reduce pollution and enhance sustainability. This not only makes it an excellent investment for entrepreneurs, but it also helps preserve the environment.
ü Boost Local Economy: Cement plants employ hundreds of people, which provides job opportunities for the local community. This increases the local economy and encourages social development.
Indian Market Outlook
The India cement market size reached 3,644.5 Million Tons in 2022. Looking forward, IMARC Group expects the market to reach 4,832.6 Million Tons by 2028, exhibiting a growth rate (CAGR) of 4.94% during 2023-2028. Cement refers to a binding material obtained by grinding a mixture of clay and limestone. It is also manufactured using other materials, such as shale, clay, slate, chalk, silica, iron ore and blast furnace slag, which are heated at a high temperature to form a brick-like substance that is then grounded into fine powder to form cement. In India, cement is extensively utilized as a prime ingredient for building houses, roads, bridges and other public structures. India is the second largest cement producer in the world and accounted for over 7% of the global installed capacity. Of the total capacity, 98% lies with the private sector and the rest with public sector. The top 20 companies account for around 70% of the total cement production in India. As India has a high quantity and quality of limestone deposits through-out the country, the cement industry promises huge potential for growth. The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. The Government also intends to expand the capacity of railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation cost. These measures would lead to an increased construction activity, thereby boosting cement demand.
Global Market Outlook
The global cement market size reached US$ 363.2 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 518.5 Billion by 2028, exhibiting a growth rate (CAGR) of 6.22% during 2023-2028. The increasing global population and rapid urbanization are resulting in the growing requirement for the construction of residential and commercial buildings. This, along with a significant rise in remodeling, renovation, and reconstruction of infrastructures and the development of mega infrastructure projects in several countries, are catalyzing the demand for cement across the globe. North America is poised to experience healthy growth in terms of revenue during the forecast period. Soaring popularity of single-family units in countries such as the U.S. and Canada is expected to generate demand for residential construction, thereby boosting the uptake of cement. According to Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the number of new housing starts increased for the first time in 3 years in 2021. The number of new housing starts in 2021 was 865,909 units, an increase of 6.6% from 2020. Custom home starts increased to 281,279 units by 6.9% year on year in 2021, while, rental housing increased for the first time in five years to 337,752 units by 9.2% compared to 2020.
Conclusion
The cement plant industry is currently experiencing explosive growth, and it shows no signs of slowing down anytime soon. This lucrative business has numerous benefits for entrepreneurs looking to invest in this sector, from job creation to significant returns on investment. Starting a cement plant business can be a smart and profitable investment.
Key Players
· CEMEX (Mexico)
· HeidelbergCement (Germany)
· InterCement (Brazil)
· LafargeHolcim (Switzerland)
· CRH plc (Ireland)
· The Siam Cement Group (Thailand)
· Titan Cement Company S.A. (Greece)
· Aditya Birla Ultratech (India)
· Votorantim Cimentos (Brazil)
· Buzzi Unicem S.p.A. (Italy)
· Mitsubishi Cement Corporation (U.S.)
· Argos USA Corporation (U.S.)
· CNBM International Corporation (China)
· Taiheiyo Cement Corporation (Japan)
· Drake Cement LLC (U.S.)
