The cement industry has basically been dominated by clinker-based industries, which in the past rely on import of raw materials from India. The basic Raw Materials are Clinker now is being produced in the country but other raw material like Gypsum, and Fly Ash and are generally imported from India. Clinker, a semi- processed raw material of cement is procured from clinker plants in Nepal. Gypsum is procured from mines in India and Pozzolana materials are procured locally or imported from India depending on availability and cost. The scope for cement industry in Nepal is good as Nepal is rich in limestone deposit with good consistent quality of CaO ( calcium oxide not less than 44%) needed to make good quality cement grade clinker.
The Cement Industries grew by 15% in terms of total revenue during 2014-15 reaching 45% of national demand. Advance Group of Companies (AGOC) has been able to part 10% in terms of reaching the national demand and 16% market share in form of volume sold within the nation. Although there are lot of cement plants only few produce clinker on their own and the basic raw material ie. Clinker is imported and only grinding is done in Nepal. Due to this reason there is a lot of room in the current market for manufactures who are able to produce their own clinker and reduce the import from India. AGOC is one among few of the companies which have its own Clinker unit.