cementization

Presented By: Salil & Saurabh

Holcim,the number two cement industry strategically allies with Gujrat Ambuja Cement.

Implication of the high profile international FDI in leading cement industry.

Details of the Indian cement industry



Developing Infrastructure

Developing Housing Sector

Liberal Fiscal Policies

Began in 1912 in a remote Swiss village. Number 2nd amongst the leading cement

producers of the world. Turnover of US $ 9.4 bn,market capitalisation

of US $ 12 bn. Three quarters of operational capacity based

in emerging markets. Employs more than 90,000 people



Innovative Production

Marketing of value adding

products/services

The government is gearing up for a big push to foreign direct investment in infrastructure and financial sectors(Eg :Development of exiting airports ;Setting up of new private banking institutions)

Projects of Posco in Orissa, Lafarge in Himachal Pradesh and Mitsubishi in Haldia/Kolkata are to be pursued on a priority basis on the recommendation of the Investment Commission.

Inflows on the capital account — foreign investment, external commercial borrowings, short-term credit and external assistance — are to be vigorously pursued to plug the widening trade deficit.

Foreign technology collaborations encouraged and allowed on liberal terms

Easy import of capital goods and raw materials- duty of 5% on machinery import and 12.5% on other goods


Description:

The building materials company is one of the top cement makers in the world (along with Lafarge and Holcim) and has grown significantly through a string of acquisitions. The majority of its sales come from cement; the company has an annual production capacity of more than 90 million tons. It also makes ready-mix concrete, aggregates, and clinker (an intermediate product used to make portland cement). CEMEX operates in North America, Europe, South America, and the Pacific Rim; North America and Europe each account for about 40% of revenues.


Description HeidelbergCement believes in concrete results. The

company is one of the world's leading producers of cement and clinker (about 80 million tons annually), and concrete; it is the largest cement producer in Germany. Cement and concrete account for about 55% and 30% of sales, respectively. In addition, the company has group services which manage fossil fuels and electricity for its operations and trade internationally in cement and clinker (an intermediate product used to make portland cement). As a way to finance its 2007 acquisition of British building products giant Hanson, HeidelbergCement sold building materials subsidiary Maxit to Saint-Gobain.


Lafarge Company Description There's nothing abstract about Lafarge. The

company -- one of the world's top makers of cement, aggregates, concrete, and gypsum (alongside such heavyweights as Holcim and CEMEX) -- is a giant in building materials. Cement accounts for more than half of sales. Lafarge gypsum products (about 10% of sales) include wallboard, plasters, and insulation. The company has more than 1,900 plants operating around the world. Western Europe accounts for about a quarter of sales, but that region's share of Lafarge business has been decreasing as the company expands its presence in Asia. Lafarge was formerly a high-flyer in the roofing industry but divested that business in 2007.


The demand for cement mainly depends on the level of development and the rate of economic growth. There are no real substitutes for cement and it forms a very low proportion of the total cost. The demand is, therefore, price inelastic. This implies that price cutting does not help boost the demand in an oversupply situation.

Over the next 3 years, we envisage a pick up in housing demand, an improvement in the levels of infrastructure development activities as well as better corporate demand." Prediction of a good monsoon is a godsend message for cement manufacturers. This, followed by good crop, should push up the demand for cement in the rural areas which would in turn help the industry emerge out of the phase of low growth.



A decade or half India’s prospect of becoming a major player in the economy seemed a distinct dream, only a theoretically possibly. During the last 14 years there has been a sea change not only the world’s perception about India’s future but in our own perception about ourselves. The world has acknowledged the arrival of India. We no longer discuss the future of India but we say the “Future is India”

THANK YOU


cementization

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leading cement producers