India is among the top Cement Producers in the world, with an estimated cumulative installed capacity of 551 million Tonnes per annum in 2021. It is also the second-largest consumer of cement, though per capita cement consumption remains below the global average, leaving significant headroom for growth.
Cement demand grew by 11-13% YoY in CY 2021. Continuing demand for affordable housing in rural areas, pent-up demand in the urban builder segment, and government infrastructure spending will remain major drivers for cement consumption.
ACC in it’s Annual Report explained it’s plans and growth forecasts. The company is working on various methods to scale up the sales. The company sales have increased by ~13% to 28.89 million Tonnes (MT) Vs 25.53 MT(YoY).
Individual Home Builder and Ground+ Three Storey(G+3) are ACC’s largest customer segments. This strong network has driven ~79% of cement sales in the retail segment in CY 2021. Gold Water Shield (Water Repellent Cement) continues to be market leader in the premium category. Co. has developed more than 150 Green Building Centres by Dec 2021.
Growth Forecast/Going Ahead:
-Plans to increase Clinker Capacity by 2.7 MTPA and Cement Capacity by 4.8 MTPA
-Demand scenarios to see a rising trend in Central and Eastern Regions
-Focus on developing and promoting green and sustainable products
-The Company will continue to explore the MSA arrangement with Ambuja for higher revenues and profitability
-The total WHRS capacity would be 46.2 MW in a year
Focus on:
– Capability building of the sales force
– Value communication for customers
– Partnering nodal agencies and consultants, to scale up sales
