Top cement may see erosion of production dominance

Cement sector's top three players, which together acco-unt for 42 per cent of domestic production, may see their dominance diminishing in the next two years with regional players coming up in a big way to meet local demand. India has 290 mtpa installed cement-making capacity. This is largely dominated by three firms – UltraTech, Holcim and Jaiprakash Associates (JPA) – with a collective production of 122 mtpa. The pace of capacity addition by the smaller players has been ahead of the larger players and nearly 60 per cent of the 60 mtpa expected to be added up to FY'14 will be from players apart from UltraTech, Holcim and JPA.Small players with capacities under 2-3 mtpa currently produce around 64 mn tonne cement. Cumulatively, they command over 23 per cent of the domestic production.Contact: UltraTech Cement.Tel: 022-6692 8400. Fax: 022-6692 8401.Website: www.ultratechcement.com