Cement is the most essential ingredient in any kind of construction activity. Cement’s central use is to bind together the ingredients of concrete- sand and aggregates. The worldwide cement industry can be characterized as a network of regional oligopolistic markets.
The cement industry is crucial to infrastructure development around the world. The global market for cement was estimated to be $326.81 billion by 2021. The market is projected to increase from USD 340.61 billion in 2022 to USD 481.73 billion in 2029, with a CAGR of 5.1% over the forecast period.
The cement industry in Bangladesh plays a very significant role in developing infrastructure as the economy grows over time. The development of the Bangladeshi cement industry goes back to the early 1950s.
1. Development of cement industry in Bangladesh, the 40th largest cement market in the world.
2. According to the Bangladesh Cement Manufacturers Association (BCMA), the annual sales of the cement industry in Bangladesh amounted to 3 billion.
3. Since the start of domestic production, cement manufacturers have produced more than the national demand. Manufacturers have a combined annual production capacity of 58 million MT against a local demand of 33 million
According to latest data of BCMA, Shah Cement Industries Ltd. holding the leading position (13% Market Share). This is the largest Cement producing plant in Bangladesh, with a capacity of 10 million metric tons per annum. Then King Basundhara and fresh Cement Bangladesh Ltd in the 2nd and 3rd position.
The graph shown above displays the 7 cement manufacturing companies that are listed in the capital market. Among listed companies LafargeHolcim Bangladesh Ltd. holding the leading position (26% Market Share) with 17% revenue growth. Then Crown Cement PLC and Heidelberg Cement Bangladesh Ltd in the 2nd and 3rd position.
The cement industry of Bangladesh has the potential to grow in the future. Despite many barriers, this industry produces more than its local demand, since the government provides many export facilities for local producers. If the Bangladeshi Government make the duty structure more friendly by exemption of some duties on exportable cement and granting cash incentives to Sri Lanka, Nepal, Bhutan and Middle Eastern countries will be feasible in future if our local manufacturers are producing these raw materials locally then the production cost will be reduced which helps the industry to grow furthermore.