India Cement Industry

Total production

The cement industry comprises of 125 large cement plants with an installed capacity of
148.28 million tonnes and more than 300 mini cement plants with an estimated capacity
of 11.10 million tonnes per annum.

The Cement Corporation of India, which is a Central Public Sector Undertaking, has 10
units. There are 10 large cement plants owned by various State Governments. The total
installed capacity in the country as a whole is 159.38 million tonnes. Actual cement
production in 2002-03 was 116.35 million tonnes as against a production of 106.90
million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in cement
production are Ambuja cement, Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting cement
and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes
and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35 million
tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted a
'Working Group on Cement Industry' for the development of cement industry. The
Working Group has identified following thrust areas for improving demand for
cement;

Further Further, in order to improve global competitiveness of the Indian

ustry, the Department of Industrial Policy & Promotion commissioned a study on the global
ess of the Indian Industry through an organization of international repute, viz.
ultancy Pvt. Ltd. The report submitted by the organization has made several recommendations for
ndian Cement Industry more competitive in the international market. The recommendations are under
n.
Cement industry has been decontrolled from price and distribution on 1st March
1989 and de-licensed on 25th July 1991. However, the performance of the industry and
prices of cement are monitored regularly. Being a key infrastructure industry, the
constraints faced by the industry are reviewed in the Infrastructure Coordination
Committee meetings held in the Cabinet Secretariat under the Chairmanship of
Secretary (Coordination). The Committee on Infrastructure also reviews its
performance.

Technological change

Continuous technological upgrading and assimilation of latest technology has been

going on in the cement industry. Presently 93 per cent of the total capacity in the
industry is based on modern and environment-friendly dry process technology and only
7 per cent of the capacity is based on old wet and semi-dry process technology. There
is tremendous scope for waste heat recovery in cement plants and thereby reduction in
emission level. One project for co-generation of power utilizing waste heat in an Indian
cement plant is being implemented with Japanese assistance under Green Aid Plan.
The induction of advanced technology has helped the industry immensely to conserve
energy and fuel and to save materials substantially.

India is also producing different varieties of cement like Ordinary Portland Cement
(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting
Portland Cement, White Cement etc. Production of these varieties of cement conform to
the BIS Specifications. Also, some cement plants have set up dedicated jetties for
promoting bulk transportation and export

Location Additional Commissioning

India Cement,
(By State) Capacities Date

Cement Company, (In mn

Cement Sector In
IndiaThe boom in the housing
market has given birth a higher
demand in India cement. The
present initiatives under taken by
the Government for infrastructure
development has also raised the
demand for cement in the country.
tones)
The cement companies such as
Ultratech, ACC, GACL and Grasim
have grown in the country
following the rising demand
direction. The planned capacities
of production of Indian Cement
Companies are as
follows:Capacities of Production
by CompaniESCompany Name
Himachal
JP Associates 4.55 Dec, 2007
Preadesh
Kothputali,
Grasim 4.08 FY 09 Q1
Rajasthan
Uttar
JP Associates 3.34 FY 2008
Pradesh
Andhra
Ultra Tech Cement 3.19 Q1 FY 2009
Pradesh
OCL Orissa 3.04 Q1 FY 2009
JK Cement Karnataka 3.00 Sept 2008
Binani Cement Rajsthan 2.57 Dec 2006
Madhya
JP Associates 2.00 Q3 FY 2008
Pradesh
 Andhra
Zuari Cement 1.98 H1 FY 2009
Pradesh
Andhra
Penna Cement 1.63 H1 FY 2009
Pradesh
Lakheri
ACC 0.94 Dec 2006
Rajsthan
Tamil
Madras Cements 1.84 H1 FY 2009
Nadu

ACC Limited is India?s foremost manufacturer of cement and

ready mix concrete with a countrywide network of factories and
marketing offices.

ACC has been a pioneer and trend-setter in cement and concrete

technology. ACC?s brand name is synonymous with cement and
enjoys a high level of equity in the Indian market.

ACC has won several prizes and accolades for environment

friendly measures taken at its plants and mines.

ACC's operations are spread throughout the country with 14

modern cement factories, 19 Ready mix concrete plants, 19 sales
offices, and several zonal offices. It has a workforce of about
9000 persons and a cAmbuja Cements Ltd.'s principal activity is
to manufacture and market cement and clinker for both domestic
and export markets.

Ambuja follows a unique homegrown philosophy of giving people

the authority to set their own targets, and the freedom to achieve
their goals.
Ambuja is the most profitable cement company in India, and the
lowest cost producer of cement in the world.ountrywide distribute
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Cement Industry SWOT Analysis

By Megan Pratz, eHow Contributor

updated: July 22, 2010

I want to do this!

The cement industry has many strengths, weakness, opportunites and threats.

To plan marketing and management strategies for businesses, it is important to perform a situations
analysis. One such analysis, a SWOT analysis, examines "strengths, weaknesses, opportunities and
threats" within a particular business or field. The cement industry is an example of a field for which a
SWOT analysis would enhance marketing and management strategies.

Strengths

1. The cement industry has many strengths to be considered. Cement is, literally, the
building block of the construction industry. Almost every building constructed relies on
cement for its foundation. The cement business is a $10 billion industry, measured by
annual cement shipments. There is also a strong reputation behind the cement industry.
Cement is a solid material and consumers rarely have complaints about the product.
Regional distribution plants have also made cement widely available to any type of buyer.
 Weaknesses

2. The cement industry is not without its drawbacks. The cement industry relies on
construction jobs to create a profit. But the cement industry heavily relies on weather. About
two-thirds of cement production takes place between May and October. Cement producers
often use the winter months to produce and stockpile cement, to meet demand. Another
weakness is the cost of transport; the cost of transporting cement is high and this keeps
cement from being profitable over long distances. In other words, shipping cement costs
more than the profit from selling it.

Opportunities

3. The cement industries has opportunities as well. One such opportunity is the cement
industry's efficiency. The cement industry has recently streamlined its production efforts,
using dry manufacturing instead of wet, which is heavier and more time-consuming. The
cement industry has also invested about $6 billion in expansion efforts to meet unmet
cement needs. Projections show that by 2012, the cement industry will have 25 percent
more production capabilities.

Threats

4. The nature of the economy have uncovered a number of threats to the cement industry.
The cement industry greatly relies on construction. The current economy has lessened the
number of construction jobs, which in turn hurts the cement industry. The cement industry
controls the majority of the United States market, but not all of it. About 11.5 metric tons of
cement are imported annually to support the unmet need. If other countries can produce
and ship cement for a reduced price, the U.S. cement industry is in danger. The U.S.
government is also attempting to regulate the cement industry's waste. The Environmental
Protection Agency has introduced regulations for the cement industry to cut down
emissions.

References

Role of Cement Industry in India GDP

The Role of Cement Industry in India GDP is significant in the

economic development of the country. The cement industry in India is one
of the oldest sectors in India.

The industry is driven by the immense growth in the housing sector, the
infrastructure development, and construction of transportation systems.

Role of Cement Industry in India GDP-Facts

 The Indian cement industry is one of the booming sectors of
the Indian economy
 The infrastructure development of the country in the recent years is
the demand driver for the cement industry
 The Indian Cement Industry is experiencing the entry of many
foreign players in the Indian market
 The average monthly capacity utilization during the year 2006-07
was 94%
 The cement dispatches in the year 2006-07 was 155 million tonnes
 The growth of the cement sector pertaining to the total output was
10% in 2006-07

Role of Cement Industry in India GDP-Production

 India ranks second in the production of cement in the world

 The growth rate of the production of cement during the year 2006-
07 was 9.1%
 The export of the cement in the year 2006-07 was 9.3 million
tonnes
 The cement industry in India constitutes of 365 small cement
manufacturing units and 130 large cement manufacturing units
 The total installed capability of the cement manufacturing is 165
million tonnes per year
 The large manufacturing units accounts for 94% of the total output
of cement

Role of Cement Industry in India GDP-Mergers and Acquisitions

 Heidelberg Cement-Indorama Cement Ltd

 Heidelberg Cement Company entered into an agreement for a

50% joint venture with the Indorama Cement Ltd, situated in
Mumbai, originally possessed by the Indorama S P Lohia
Group.
 Heidelberg Cement Company has two manufacturing units in
India

 Italcementi cement-Zuari Cement Limited

  Italcementi cement company has acquired share of the
famous Indian cement manufacturer, the Zuari Cement
Limited
 The acquisition was of 50% shareholding and the deal was of
about 100 million
 It took over the plant of the Zuari Cement Limited in Andhra
Pradesh

 Holcim Cement-Gujarat Ambuja Cements (GACL)

 Holcim Cement signed an agreement of 14.8% take over with

the Gujarat Ambuja Cements (GACL).
 Holcim Cement Company is among the leading cement
manufacturing and supplying companies in the world.

 Lafarge India

 Lafarge India is the subsidiary of the Lafarge Cement

Company of France.
 It was established in 1999 with the acquisition of the Tisco
and the Raymond cement plants
 Lafarge Cement presently has three cement manufacturing
units in India one of them is in Jharkhand and two other in
Chhattisgarh
One of the oldest of brick and mortar industries, the Indian cement sector is now
hogging the limelight as leading players are gearing to face the new economy. The
cement sector has undergone a veritable metamorphosis after the decontrol.
Further, it witnessed a blistering pace of growth in the succeeding years and now
the industry is estimated to have a turnover of Rs 25,000 crore.

Virtually thrown open to market forces, the sector stands witnesses to large-scale
consolidation moves via acquisitions, mergers or hostile takeovers. However, the
domestic players appear to have successfully scuttled the MNC players from
playing a greater role in the domestic cement industry. Aditya Birla group will
eventually emerge as the largest player in the domestic cement industry, with the
proposed take over of the cement business of Larsen & Toubro. Earlier, Gujarat
Ambuja had acquired 14.43% strategic stake in ACC. In the process, Grasim
Industries will control about 22% of the domestic large plant capacity while
Gujarat Ambuja will control about 20%. As a result, these two players alone
control over 42% of the capacity of large cement plants in India.

on network of over 9,000 dealers.