Cement & building materials.

Cement and building materials is a ₹2.1 lakh crore value-added envelope (0.67% of national GVA) built around a 470-million-tonne cement industry — the world's second largest — that has consolidated faster since 2022 than any other large Indian industry, with UltraTech and the Adani group's Ambuja–ACC together holding 41% of capacity. Cement itself is the listed, capital-intensive core (~₹0.7 LC of GVA), while more than half of the chapter's value added comes from a largely unlisted and informal tail of fired-clay bricks, ceramic tiles and sanitaryware (Morbi), glass and ready-mix concrete/AAC blocks. Demand has compounded at 6.3% a year since FY05, tracking about 1.2x real GDP growth and driven mainly by individual-home housing (~55%) and infrastructure (~25%), with utilisation structurally below capacity (67% in FY26) because capacity additions have consistently outpaced demand. The base case projects chapter GVA rising to ₹3.2 lakh crore by FY30 and ₹5.6 lakh crore by FY35 on continued cement-volume growth, price discipline post-consolidation, and faster formalisation of tiles, glass, AAC and RMC, partly offset by a shrinking clay-brick segment and GST-constrained pricing.

Estimated GVA

2.1 ₹ LC · FY26

% of national GVA

0.67 % · FY26

Cement demand / installed capacity

470 / ~700 mt · FY26

Capacity utilisation

67 % · FY26

Cement per capita

330 kg · FY26

Revenue pool (cement + bricks/tiles/glass/RMC)

~6 (cement ~2.5; other ~3.5) ₹ LC · FY26

Listed Construction Materials PAT

0.24 ₹ LC · FY26

Listed market cap

9.0 ₹ LC · FY26