Cement has various uses like for building houses, factories, bridges, roads, airports, dams and other commercial establishments. For the cement industry, bulky and heavy raw materials are required such as limestone, silica, alumina and gypsum, along with this rail transportation, coal and electric power is also required. India produces different types of cement. 

There are certain factors for choosing the ideal location for setting up a cement factory or any other factory– 

• To choose the location for setting up the industry is difficult and is influenced by the factors like availability of raw material, labour, capital, power and market, etc. It is difficult to look for the place with the inclusion of all these factors. 
• The location is chosen when either all these factors are available at one place or arranged at a lower cost. 
• Urbanisation follows when the industrial activity starts. These industries are sometimes located in or near the cities as cities provide markets for industrial products and also services like banking, insurance, transport, labour, consultants, financial advice, etc. Sometimes, all these industries come together to make use of the advantage provided by urban centres. This is referred to as agglomeration economies. 
• Most of the industries are also located with the view to connect easily with the places of overseas trade like Chennai, Mumbai, Kolkata, etc.
• The location of the industry is also influenced by government policies and specialised labours. 

Gulf countries have easy access to these industrial plants located in Gujarat which has strategically located Cement plants. In 1904, the first cement plant set up in Chennai, India. It was after independence that the cement industry developed and other factors like since 1989 decontrol of price and distribution and policies led to the development in terms of capacity, process, technology and production. Moreover, there are 128 large plants and 332 mini cement plants. 

Currently, the largest cement producing states in India Andhra Pradesh, Rajasthan, Karnataka, Madhya Pradesh, Gujarat and Kerala. To increase the demand and supply, initiatives have been taken. In terms of export and production, the cement industry is doing well.