cement industy

8/2/2019 Cement Industy

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CEMENT INDUSTRY

BY

N.SHRI SOUNDARYA1


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Economy Overview

Indian economy grew at the rate 8.6% during

2010-11.

India is expected to grow at 6.8%

in calendar year (CY) 2012.Growth in India is expected to accelerate

strongly in CY13 at 9.5%.

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INTRODUCTION

Cement - the basic element for the construction

of roads, dams, bridges, water treatment

facilities, hotels, schools etc.

Raw materials used in the manufacturingprocess - limestone, sand, clay, power and iron

ore.

Limestone- main raw material.

Limestone deposits are obtained by leasingagreement.

Period of Lease- 25 years.

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CONTD.

Manufacturing process :

Raw Material Preparation

Raw Grinding

Pyroprocessing

Finish Grinding and Distribution

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INDUSTRY OVERVIEW

India is the worlds second largest producer of

cement after China, accounting for 78 per cent

of global cement production.

Indias total cement production in FY 2010-11was about 290 mtpa.

India exports cement to more than 30 countries

namely Nepal, Srilanka, Bangladesh and Middle

east countries.The rationale for the growth in cement exports is

the variety of cements produced here.

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TYPES OF CEMENT

TYPES OF CEMENT USES

Portland Blast Furnace Slag

Cement (PBFS)

Construction ofDams

Sulphate Resisting Portland

Cement

Used in Seacoast

Ordinary Portland Cement

(OPC)

Construction of Castings

Oil Well Cement Fixing oil well

White Cement Tiles, Flooring Works

Clinker Cement Construction of Bridges, Houses

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CONTD.

Expected to reach 303 mtpa during 2011-14 with

a CAGR of 12%.

CMA is targeting to achieve 550 MT capacity by

2020

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GEOGRAPHIC SPREAD

REGIONS INSTALLED

CAPACITY

(Million Tones Per

Annum)FY10

KEY MARKETS

North 55.6 Rajasthan, Punjab, Haryana

South 93.4 Tamil Nadu, AndhraPradesh and Karnataka

East 36.9 West Bengal, Orissa andBihar

West 40.4 Maharashtra and Gujarat

Central 30.7 Uttar Pradesh

TOTAL 257

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GROWTH IN DOMESTIC

CONSUMPTION OF CEMENT

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MAJOR CEMENTPLAYERSIN

INDIA

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PRICING POLICY

Price is decided by Cement Manufacturers

Association.

Also influenced by demand and supply.

Current Price between Rs.280-300.

Price from state to state on account of cost of

production.

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TOP10 CEMENT

COMPANIESININDIACOMPANIES TURNOVER(in crores)UltraTech Cement Limited 13980.75

ACC Limited 9339.64

Ambuja Cements Limited

7998.55

Rain Cement Limited 4965.76

India Cement Limited 3667.16

Shree Cement Limited 3558.64Prism Cement Limited 3456.03

Madras Cement Limited 2644.71

Birla Cement Limited 2264.35

JK Cement Limited 2119.33 12


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ROAD AHEAD

Strong demand drivers- Housing segment ,

Infrastructure, Commercial real estate.

Housing growth:

Housing segment- major portion of the total

domestic demand

Estimated demand for housing units - 4.3 million

units.

Government initiatives in rural and semi-urban

areas .

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CONTD.

Infrastructure growth:

Investment in infrastructure - USD1 trillion in

the 12th Five Year Plan (201217).

National Highways Authority of India (NHAI)

along with the Planning Commission in the

12th Five-Year Plan allocates more than

20,000km of highways

Expanding the railway capacity and handling

and storage facility- reduction in transportation

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CONTD

Commercial real estate growth

Demand for Commercial Real Estate segments -

retail space, office space ,hotels, hospitals,multiplexes and schools.

Demand for office space -increasing number of

multinational companies and the growth of the

services sector

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Construction of Hotels-Strong growth in tourism,

including both business and leisure travel.

Estimated demand for real estate segment in

2014:Office -240 million sq ft

Retail- 55 million sq ft

Hospitality - 78 million rooms.

Use of alternate fuels to lower production costs

and emissions

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NEW PROJECTS 2012

Government of West Bengal is planning to construct

a super specialty hospital in dist. Birbhum,

West Bengal

Spirit Global Constructions is to construct acommercial mall, multiplex and restaurant in

Ludhiana, Punjab which spreads over 70,000 sqft.

Kolkata Metro Rail Corporation is implementing a

metro line from Baranagar-Barrackpore

and Dakshineswar and the cost of the project is

Rs.20696 million .

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Contd

Haryana State Roads & Bridges Development Corpn.

is implementing road upgradation to Buria Kothi

Punhana road with total investment of Rs. 53.58

Crore, work on the project is likely to be completed

by December 2012.

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KEY CHALLENGES

FY11 was quite challenging for the cement

industry

Fuel and energy prices remained high.

Increase in imported as well as domestic coal

prices impaired energy costs by 23% which

rose substantially from Rs. 682/t to Rs.840/t

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Over capacity, rising input costs and volatile

pricing environment is expected to affect

industry margins.

Cement prices remained under pressure causingmargins to contract severely.

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THANK YOU

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cement industy

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