This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management Indore

No part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

Porter five force analysis

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Source: CRISIL Research

Industry structure
Total installed cement capacity in India stood at 370-375 million tonnes, as of March 2014.

This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management Indore
No part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

Region-wise installed capacity (2013-14)

Source: CRISIL Research

The domestic manufacturers can broadly be bucketed into pan-India, regional and standalone players. Pan-India players are large players like Holcim
Group companies - ACC and Ambuja, and Aditya Birla Group company - UltraTech Cement (including Samruddhi Cement). Players whose presence is
restricted to one or two regions are categorised as regional players. Key players included in this segment are Jaiprakash Associates (North and
Central), Lafarge (concentrated in the East), India Cement (South), Shree Cements (North), Binani Cement (North), Kesoram Industries (South),
Chettinad Cement (South), Dalmia Cement (South) and Madras Cement (South). Players like Panyam Cement, Penna Cement, etc are operational in
few states within a region. Owing to their largely local reach, these players are classified as standalone players.

Consolidation in cement industry

The Indian cement industry is highly fragmented with a presence of few large players and several small players. However, the top two players - Holcim
Group and Aditya Birla Group - account for around 35 per cent of the total market share.

This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management Indore
No part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

Over the past decade many large mergers and acquisitions have taken place in the Indian cement industry. Some have been in the form of global
companies acquiring domestic players, whereas others have been domestic companies looking to consolidate their market position. With cement
demand having weakened in the last two years, consolidation in the domestic market was more prevalent. Since demand growth is likely to pick up only
gradually from current levels, further consolidation in the industry is likely.

Key mergers and acquisitions in cement industry

Cement plants sold/ acquired in 2013-14

Source: CRISIL Research

n.a.: Not available