India’s cement industry, with a FY23 market size of 3.96 billion tonnes, is expected to grow at a 4.7% CAGR to reach 5.99 billion tonnes by 2032. The sector benefits from abundant limestone reserves and is geographically concentrated in South India. FY23 production was 374.55 million tonnes, with 553 MTPA installed capacity as of April 2024.
Despite pricing pressures, sales are projected to grow 6–8% in FY25, driven by infrastructure projects like the Mumbai-Ahmedabad Bullet Train. Major players like UltraTech and Adani are expanding rapidly. Export value reached ₹5,099 crore in FY24, while imports were ₹1,442 crore.
| Company Name | Market Cap (₹ Cr) | 5Y Profit Growth (%) |
| JK Cement | 39,371.65 | 24.64 |
| Shree Cement | 1,06,777.75 | 15.91 |
| Ambuja Cement | 1,32,245.06 | 14.85 |
| ACC | 34,646.79 | 11.33 |
| UltraTech Cem. | 3,44,738.42 | 1.48 |
JK Cement, a part of the JK Organisation, is one of India’s top 10 grey cement manufacturers, with over 40 years of industry experience. It ranks fifth in North India and sixth in the central region. Its portfolio includes 81% grey cement and 19% white cement and allied products, with a strong dealer network across 19 Indian states and exports to 32 countries. The company operates 15 plants and is expanding its capacity to 30 MTPA by FY26. It has also entered the paint business and is working on eco-friendly cement solutions like LC3 and PLC.
Key Metrics
Shree Cement is India’s 3rd-largest cement producer with 46.4 MTPA capacity and among the lowest-cost producers due to strong operational efficiencies and captive resources. Its product range includes PPC, OPC, and premium brands like Bangur Magna, with growing emphasis on green products and premiumisation. The company expanded into the RMC segment and aims to reach 80 MTPA capacity by 2028.
Key Metrics
Ambuja Cements Ltd., part of the Adani Group, is one of India’s top cement manufacturers with an installed capacity of 31 MTPA. It operates six integrated cement plants and eight grinding units across India. It recorded a strong 86.4% capacity utilisation in FY23. Ambuja aims to double its capacity by FY28 through brownfield projects and efficiency improvements.
Key Metrics
ACC Ltd., part of the Adani Group, is one of India’s oldest and leading cement and RMC producers. It operates 20 cement manufacturing facilities and 86 RMC plants across India, with a cement capacity of 38.55 MTPA and utilization of 75% in FY24. The company offers both premium and affordable cement under Gold and Silver product lines. RMC contributed 6% to revenue in FY24. ACC has focused on cost optimization and renewable energy, with plans to invest ₹10,000 Cr for 1,000 MW green capacity by FY28. It aims to expand total cement capacity to 42.55 MTPA by FY26.
Key Metrics
UltraTech Cement, a flagship of the Aditya Birla Group, is India’s largest and the world’s third-largest cement manufacturer (ex-China). It holds a dominant 22% market share in India’s grey cement capacity.
With a massive distribution network, vertically integrated operations, and a growing overseas presence, UltraTech spans all key segments—grey cement, white cement, RMC, and other construction solutions. It is aggressively investing in green energy and capacity expansion to strengthen leadership.
Key Metrics
The debt-to-equity (D/E) ratio matters a lot for cement companies. This is because they require large investments in plants and machinery. A high D/E ratio means the company is heavily reliant on borrowed funds, which increases financial risk during downturns. A lower D/E ratio indicates better capacity to handle economic or demand shocks.
Here is a list of companies ranked by their D/E ratio:
| Company Name | Debt/Equity |
| Ambuja Cement | 0.01 |
| ACC | 0.02 |
| Shree Cement | 0.08 |
| UltraTech Cem. | 0.34 |
| JK Cement | 1.04 |
Understanding the P/E (Price-to-Earnings) ratio helps investors assess if a stock is overvalued or undervalued compared to its earnings.
A lower P/E may indicate a good buying opportunity, while a higher P/E might suggest overpriced stock or high future growth expectations.
Here is a list of top cement companies in India based on their P/E ratio:
| Company Name | P/E |
| ACC | 14.88 |
| Ambuja Cement | 31.59 |
| UltraTech Cem. | 56.34 |
| JK Cement | 62.38 |
| Shree Cement | 87.28 |
The trends in India’s real estate market directly impact the demand for cement, as it is a core material in construction across various sectors. Here’s how each trend relates to cement demand:
The growth in housing sales, especially in mid-to-high-end segments and luxury housing, has significantly increased cement demand. The rise in integrated townships and the need for advanced infrastructure, such as AI-driven security and sustainable homes, require substantial amounts of cement for the development of buildings, roads, and utilities.
Construction of new office spaces, including in tier-2 cities, have increased the demand for cement for foundation work, structural development, and building frameworks.
The transformation of shopping malls into experiential hubs and the growth of the hospitality sector have directly impacted India’s cement market. The expansion of retail outlets and hotels, especially in tier-2 cities, also contributes to increased cement demand for these developments.
The development of data centers, co-living spaces, and senior housing requires specific construction requirements that depend heavily on cement.
India’s cement industry is on a growth path, driven by infrastructure expansion, real estate demand, and sustainability initiatives. Despite pricing pressures, top players like UltraTech, Shree, and Ambuja are investing in capacity and green energy. Strong fundamentals and government support position the sector for robust long-term growth.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 7, 2025, 5:28 PM IST
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