Cement Sector

UltraTech Cement has received prestigious 5-star and 7-star ratings for its 13 limestone mines from the Indian Bureau of Mines, recognizing its commitment to sustainable and environmentally responsible mining. These accolades underscore UltraTech’s alignment with the Bureau’s emphasis on green mining, operational efficiency, and technology-enabled mineral processing. The recognition affirms the company’s strategic focus on integrating sustainability into its core operations, reflecting growing industry standards for environmental stewardship within the mining sector.

UltraTech Cement, India’s largest cement producer, has officially denied being under investigation by the Competition Commission of India (CCI) concerning alleged cartelization in tenders floated by state-owned oil giant ONGC. While UltraTech’s recently acquired subsidiary, India Cements Ltd (ICEM), remains embroiled in the probe, the parent company clarified that no orders or financial scrutiny have been directed at UltraTech itself. The CCI’s inquiry, initiated following a complaint by ONGC, is centered on alleged collusive practices among multiple cement firms.

India’s competition regulator, the Competition Commission of India (CCI), has intensified its probe into potential cartel activity involving prominent cement manufacturers. UltraTech Cement, its subsidiary India Cements, Dalmia Bharat Cement, and Shree Digvijay Cement have been directed to furnish extensive financial documentation—including audited statements and income tax records—spanning up to nine fiscal years.

The Indian cement industry demonstrated remarkable resilience in May 2025, registering a 9% year-on-year volume increase to 39.6 million metric tonnes (MT), accompanied by an 8% rise in average cement prices to Rs. 360 per 50 kg bag. This positive momentum, underscored by stable input costs—particularly lower coal and petcoke prices and steady diesel rates—has bolstered operating margins across the sector. According to a recent ICRA report, cement volumes are projected to grow 6-7% in fiscal year 2026, driven by sustained demand from housing and infrastructure development.

India’s cement industry, after rebounding with 10–11% year-on-year growth in the March 2025 quarter, is poised for a more moderate performance in the June quarter due to the early onset of monsoon and a weak base from last year. Despite temporary tailwinds from government-led infrastructure spending, overall FY25 demand growth remained limited at 5–6%, the lowest since the pandemic-hit FY21. Price fluctuations, supply overhangs—especially in Southern and Eastern India—and declining profitability have intensified pressure on smaller players.

Indian equity markets staged a sharp recovery on Monday, driven by value buying in information technology and energy stocks, coupled with a positive global sentiment and easing crude oil prices. The benchmark BSE Sensex soared 677 points to close at 81,796.15, while the NSE Nifty advanced nearly 228 points to end at 24,946.50. This rebound comes on the heels of a two-session losing streak, during which both indices shed close to 1.7%. Key gainers included large-cap IT firms and cement majors, while subdued performance was noted in auto and pharma counters.

Birla Corporation Ltd., the flagship enterprise of the M.P. Birla Group, has emerged as the preferred bidder for the Gourum Khan Ki Dhani (South) limestone block in Rajasthan’s Jaisalmer district. The allotment follows a competitive e-auction conducted by the state government. Spanning nearly 500 hectares, the block lies in a region known for premium-grade cement limestone. With a winning bid of 20.60% as the final offer, the acquisition strengthens Birla Corporation’s access to critical raw materials.

JK Cement has cemented its presence in Jammu & Kashmir by acquiring a controlling 60% stake in Saifco Cements for Rs 150 crore, marking a significant foray into the region's burgeoning construction sector. The acquisition establishes JK Cement as the first major manufacturer to operate in Srinagar, a move hailed as a catalyst for regional economic empowerment. Saifco Cements, with an integrated plant in Khonmoh and annual revenues of Rs 73.17 crore, now becomes a subsidiary of JK Cement.

India’s cement industry is poised for significant consolidation, with leading companies projected to increase their capacity share beyond 60% in the next two years, according to Dalmia Bharat leadership. Following a subdued 5% demand growth in FY25, impacted by elections and erratic weather, the sector is expected to rebound with 7-8% growth in FY26. Dalmia Bharat aims to expand its cement capacity from 49.5 million tonnes per annum (MTPA) to 75 MTPA by FY28, underpinned by a Rs 3,520 crore investment plan.

India’s cement industry is on the brink of a transformative phase, driven by a sharp rise in infrastructure development and housing demand. According to Moody’s Ratings, the sector is witnessing rapid consolidation, with large players acquiring smaller firms to boost capacity and improve efficiency. The top 10 producers have acquired 140 million metric tonnes per annum (MMTPA) in the last five years, worth approximately Rs. 890 billion.