A Brief History of Indian Cement Industry

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Quick Note from BricksnMortar Edesk: 
Further to one of our recent posts regarding a shared article entailing HISTORY OF CEMENT, we are sharing another informative piece of information depicting A BRIEF HISTORY OF CEMENT INDUSTRY IN INDIA.
Hope our readers would find this shared information useful/ insightful.
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India, being the second largest cement producer in the world after China, has got a huge Cement market considering its inhouse demand rather than just depending on export markets. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would achieve close to 310 - 320 million tonnes per annum (MTPA) in FY11 and close to 345 - 350 million tonnes per annum (MTPA) by FY12.

The history of the cement industry in India dates back to 1889 when a Kolkata based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in the year 1956, established to ensure fair price model for consumers as well as manufacturers. Later in 1977, government authorized new manufacturing units (as well as existing units going for capacity enhancement) to put a higher price tag for their products. A couple of years later, government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low cost plants.

Cement Company, in any country, plays a major role in the growth of the nation. Cement industry in India was under full control and supervision of the government. However, it got relief at a large extent after the economic reform. But government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy like India, there is always large possibility of expansion of cement industry.

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[Sourced partly from MapsofIndia's business profile sections. Information however cannot be 100% vetted]

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