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How Does The Cement Industry of India Function ?

The cement industry happens to be among the significant contributors to the growth of the Indian economy. The industry enjoys a fairly consistent growth rate in every fiscal year. Moreover, cement is mostly needed by the housing and real estate industry of India. You can find the best PPC cement in India via

Besides this general information, there is a few insider's information too that will make you understand how the cement industry works. Read ahead.

Customer profile of the industry

The customers of this industry of India fall under two categories. One category of customers is retailers and the other category is that of infra customers. The trade segment of India that buys cement regularly falls under the category of retailers.

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The manufacturers of strong cement in Shillong, Manipur, Mizoram, and other places of the country often target these customers because they give a high margin business. Another category is that of infra customers. This is the nontrade segment of India. Margins earned by cement manufacturers for doing business with this segment are relatively much lower.

Potential customers

The private entrepreneurs are the primary potential customers of this type of industry in India. However, there are some public sector entities as well that buy cement on a consistent basis every year.

Business strategy in the retail segment

As the retail segment of consumers gives higher returns to the mortar manufacturing companies, the competition in this category is also very steep. Therefore, the manufacturers follow a push strategy in order to attract the attention of their prospective customers.

There is yet another reason that makes the cement manufacturers follow the push strategy. Basically, the cement customers simply understand quality and nothing beyond that. Hence, the manufacturers have to devise strategies to push their products ahead of their competitors.