Trends in Indian Cement Industry
India, ranking at the second place after China, is one of the leading manufacturers of cement globally. Development programs like “Housing for All by 2022” and many others are dependent upon the cement industry and relay the message that it is an integral part of our economy. The forecasted consumption of cement in the country in 2019 is about 23 MTPA (Million Tonnes per Annum) more than that of 2018. This increase in demand and the subsequent expected increase in manufacturing of cement will lead to an increase in the consumption of fuels and energy.
Increasing Demand
With new government policies aiming to ease the credit to homebuyers, the housing sector leads the current cement demand with 65%. Trailing behind are public infrastructure with 20% demand and housing and real estate with 15%.
Cement Production Capacity
Considering the increasing demand and the government’s willingness to complete their programs, the manufacturing of cement in India is expected to rise. The expected production capacity is 509 MTPA for the 2019 financial year. Southern India is at the front with an expected capacity of 181 MTPA, followed by 104 MTPA of Northern India, 94 MTPA of Eastern India, 68 MTPA of Western India, and 62 MTPA of Central India.
Investments
· Raysut Cement Company, as of December 2018, is planning to invest a capital of US$ 700 million in India by the year 2022.
· Ultratech has commissioned a cement grinding facility and a greenfield clinker plant in Dhar, Madhya Pradesh during 2017-2018. A 1.75 MTPA cement grinding facility and a 13 MW waste heat recovery system are expected to complete at the same location.
· JK Cement is planning to increase the production capacity at its Mangrol plant from 10.5 MTPA to 14 MTPA in the next 3-4 years with an investment of Rs. 1,500 crore.
Energy Consumption
India’s best cement plants are at par in performance with the best in the world. But the coexistence of older plants with lower capacities, obsolete technologies, and poor performances brings down the average energy consumption. Still, the average specific electrical energy consumption of 82 kWh/tonne of Portland cement is lower in comparison to the world average of 100-110 kWh/ tonne. The specific thermal energy consumption also shows a similar trend.
A typical dry process cement plant uses 20-25% electrical energy and 75-80 % thermal energy. The 99% of the thermal energy is used for pyro-processing that has a 5-40% scope of improvement in terms of energy efficiency in cement industry.
Coal Consumption
Even in 2019 coal remains to be the primary fuel in major industries, including cement where it amounts to half the production cost. Although the coal production target set by Coal India Limited is 1 billion ton by 2020, cement industry gets only 5% of it while the remaining demands are met through imports. India had to import 13.5 million tonnes of coal in the first 10 months of 2018 from the US as compared to that of 9.9 million tonnes in 2017.
India is expected to become a major exporter of cement to Africa, the Middle East, and other developing nations with an added advantage to cement plants in port areas like Visakhapatnam and Gujarat. Eastern India also shows untapped market possibilities for cement companies.
For more information visit: http://www.cmaindia.org
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