Domestic Cement Sector Set to see 8% Growth in 2025 Owing to Latest Merger

The Indian cement industry, amid ongoing consolidation and intensifying competition between two major corporate groups acquiring smaller players, is looking ahead to 2025 with optimism. The sector expects an 8% growth in sales, driven by increased government investments in large-scale infrastructure projects. This anticipated demand surge offers hope for improved pricing, better profit margins, and an acceleration in market activity.

In 2024, the industry grappled with a range of challenges, including moderate utilization of production capacities, suppressed sales realizations, and contraction in profit margins due to rising costs. These hurdles resulted in slower volume growth and impacted the revenue streams of many players. However, the year also marked a transformative period defined by high-stakes acquisitions and strategic moves by leading companies.

Aditya Birla Group’s UltraTech Cement and Gautam Adani-led Ambuja Cements have been at the forefront of this consolidation drive, acquiring over 50 million tonnes of capacity for a combined $4.5 billion. Both companies have pursued aggressive expansion plans, combining organic growth with key acquisitions to strengthen their market presence and achieve growth objectives ahead of schedule. Notably, Adani Cements, a relatively new entrant to the industry, acquired prominent names like Sanghi Industries, Penna Industries, and recently announced its intent to take over Orient Cement from the CK Birla Group. Its subsidiary, ACC, also bolstered its portfolio by acquiring Asian Concretes and Cements.

As these corporate giants refine their strategies and gear up for future growth, the industry anticipates a turnaround in 2025. With government-driven infrastructure initiatives expected to fuel demand and industry consolidation providing the advantage of scale, there is cautious optimism for a more favorable landscape in the years to come. The Indian cement sector appears poised for a pivotal phase of transformation, blending recovery with long-term growth.