The one Indian industry which is set for growth over the coming years is the Cement Industry. The worlds second largest cement producer (after China) reached its total installed capacity to 231 million tones after adding 11 million tones of capacity during the first half of 2009.
The main characteristics of this industry is that it is highly fragmented, cyclical and highly capital intensive. There are around 125 large and 300 small cement plants. Some of the leading cement manufacturers are UltraTech/Grasim combine, Dalmia Cements, India Cements and Holcim. Returns depend on the vibrancy of the economy as a whole as it directly affects the sales realization and capacity utilization.