SHREE CEMENT LTD.

INTRODUCTION
DATE OF COMMENCEMENT:

NAME OF THE COMPANY: SHREE CEMENT LIMITED

PROJECT ASSIGNED:FUNCTIONAL AREAS:-MARKETING ANALYSIS

MARKET ANALYSIS
OVERVIEW:

Shree Cement is primarily an Indian cement manufacturer. It was founded in Beawar in

the Ajmer district of Rajasthan in the year 1979 and now headquartered in Kolkata, is one of the
biggest cement makers in Northern India. It also produces and sells power under the name Shree
Power (Captive Power Plant) and Shree Mega Power (Independent Power Plant).

Shree Cement Ltd is one of India's premier cement makers. Currently its manufacturing
operations are spread over North and East India across six states. Its current installed capacity
stands at 34.9 million tones. The company is an energy conscious & environment friendly
business organization. They have three brands under their portfolio namely Shree Ultra Jung
Rodhak Cement, Bangur Cement and Rock strong Cement. Their manufacturing units are located
at Beawar Ras Khushkhera, Suratgarh and Jobner (Jaipur) in Rajasthan Laksar (Roorkee) in
Uttrakhand Aurangabad in Bihar Panipat in Haryana Baloda Bazar in Chhattisgarh and
Bulandshahr in Uttar Pradesh. The company is headquartered in Kolkata India.
The company has installed 120 MW captive power plants split into two locations (Beawar &
Ras) to meet the complete power needs of a 15 million tonne Integrated Cement Plant.
Commissioned 2x18 MW Greenfield Power Plant at Beawar in 2002 and running successfully.
One 6 MW TG is also operating successfully with excess steam available from this 2x18 MW
Power Plant. 4x18 unit is operational in RAS plant (40 km from Beawar). At same location 2x50
MW unit also exists and being fully operational. Company also believes in producing power
from waste heat recovery methods (from Cement Kiln and preheat). Making a total of 265MW
captive power along with 300MW independent
HISTORY:

Shree Cement Ltd was incorporated in the year 1979. The company was promoted by Calcutta-
based industrialists P D Bangur and B.G. Bangur. During the year 1994-95 the company
undertook new activities in the field of leasing and hire purchase. The company made a tie up
with Christian Pfeiffer & Company Germany for installing a horizontal impact crusher to pre-
crush clinker before using it in the cement mill for upgrading cement output and save energy.
Also they made a tie up with IKN Germany for incorporating their KIDS system in the clinker
cooler. In the year 1997 the company commissioned their second plant with the capacity of 1.24
million tones raising total capacity to 2.0 MTPA.

YEAR EVENTS
1979

- The Company was incorporated on 25th October, at Jaipur. The Company was promoted by
members of the Bangur family and others. Shree Digvijay Cement Co. Ltd., Graphite India, Ltd.
and Fort Gloster Industries, Ltd. took active part in the promotion of the Company. The
Company manufacture's cement & cement products.
-To reduce fuel and power consumption, the Company adopted the latest dry process, four stage
preheater precalcination technology of clinkerisation and air swept roller mill grinding system
for raw material and coal grinding.
-The Company entered into agreement with F.L. Smidth & Co. A/s. Copenhagen, a designer and
manufacture of cement plants, its associates F.L. Smidth & Cia. Espanola S.A., Madrid and with
Larsen & Toubro Ltd., Mumbai for the supply of plant equipment and services for the proposed
project.

ANALYSIS
Shree Cement Ltd is one of India's premier cement makers. Currently its manufacturing
operations are spread over North and East India across six states. Its current installed
capacity stands at 34.9 million tonnes.

The company is an energy conscious & environment friendly business organization.

They have three brands under their portfolio namely Shree Ultra Jung Rodhak Cement
Bangur Cement and Rockstrong Cement. Their manufacturing units are located at
Beawar Ras Khushkhera Suratgarh and Jobner (Jaipur) in Rajasthan Laksar (Roorkee) in
Uttarakhand Aurangabad in Bihar Panipat in Haryana Baloda Bazar in Chhattisgarh and
Bulandshahr in Uttar Pradesh. The company is headquartered in Kolkata India.Shree
Cement Ltd was incorporated in the year 1979. The company was promoted by
Calcutta-based industrialists P D Bangur and B G Bangur. The company is one of the
largest cement producers in Rajasthan (Beawar) and is the largest single location
manufacturer in Northern India. During the year 1994-95 the company undertook new
activities in the field of leasing and hire purchase. The company made a tie up with
Christian Pfeiffer & Company Germany for installing a horizontal impact crusher to pre-
crush clinker before using it in the cement mill for upgrading cement output and save
energy. Also they made a tie up with IKN Germany for incorporating their KIDS system
in the clinker cooler

.In the year 1997 the company commissioned their second plant with the capacity of
1.24 million tonnes raising total capacity to 2.0 MTPA. In October 1997 the Raj Cement
commenced their production. During the year 2001-02 the company exercised to
commission a captive 36 MW thermal power project at a cost of Rs.120 crores. In
September 2001 they signed an EPC contract with Thermax Ltd and commenced the
civil work in October 2001.During the year 2003-04 the company installed a 36 MW
captive power plant which translated into a complete self-dependency and significant
savings. During the year 2005-06 the company commissioned a greenfield plant of 1.5
million tonnes per annum (MTPA) capacity at Ras. In August 2005 they commissioned 6
MW captive thermal power plant at their cement manufacturing facility in Rajasthan.
During the year 2006-07 the company expanded their production capacity at Bangur
city from 1.50 MTPA to 3.00 MTPA by commissioning their unit-IV on March 26 2007.
Also the company commissioned one unit of captive power plant of 18 MW capacity at
Bangur city in order to meet the power requirement of the expanded capacity. In April
2007 they launched their third premium cement brand in the market called Tuff
Cemento 3556.During the year 2007-08 the company completed two clun clinkerization
units namely unit V and VI at Bangur city and two grinding units at Khushkhera in Alwar
Rajasthan. Thus the company attained a total capacity of 6.83 MTPA on ordinary
portland cement (OPC) basis. Also they commissioned the two captive power plants at
Bangur City in order to meet the power requirement of these expanded capacities.
During the year 2008-09 the company completed their 1 MTPA Clinkerisation Unit (unit-
VII) at Bangur city and started their trial production on March 24 2009. In September
2008 they increased the thermal power generation capacity by commissioning 18 MW
turbine generator (TG-VI) at Bangur city.

On 8 March 2010 Shree Cement announced that the company has commissioned its
1.8 MTPA Clinker Grinding Unit at Village Udaipur Udasar Tehsil Suratgarh in Sri
Ganganagar District Rajasthan. On 15 March 2010 Shree Cement announced that the
company has commissioned its 1.8 MTPA Clinker Grinding Unit at Village Akbarpur-Oud
Tehsil Laksar in Haridwar District Uttrakhand.On 16 September 2010 Shree Cement
announced that the company has lighted up its Clinker Manufacturing Unit (Unit VIII) of
1 Million tonnes Per Annum capacity at Bangur City Ras in Pali District of Rajasthan on
15 September 2010.On 24 June 2013 Shree Cement announced that the company has
lighted up its Clinker Manufacturing Unit having capacity of 6000 Ton per day (TPD) at
Bangur City Ras in Pali Distt of Rajasthan on 20 June 2013.On 19 May 2014 Shree
Cement announced that it has commissioned one new cement unit of 2 Million Tons Per
Annum (MTRA) capacity at Bangur City Ras District Pali Rajasthan on 16 May 2014. The
unit is named as Ras New Cement Unit (RNCU).On 1 July 2014 Shree Cement
announced that it has commissioned a grinding unit of 2 Million Tons Per Annum
(MTPA) capacity at Aurangabad in Bihar on 30 June 2014. On the same day the
company announced that it has lighted up its Clinker Manufacturing Unit having
capacity of 6000 Ton per day (TPD) at Bangur City Ras in Pali District of Rajasthan on
30 June 2014.On 2 March 2015 Shree Cement announced the company has
commissioned Cement Mill Section of 2.6 Million Tons Per Annum (MTPA) Capacity at
Baloda Bazar near Raipur in Chhattisgarh on 25 February 2015. On 15 April 2015 Shree
Cement announced that the company has completed the phase-2 of Ras New Cement
Unit at Bangur City Ras District Pali Rajasthan and enhanced its cement production
capacity by 2 MTPA with effect from 9 April 2015. On 27 April 2015 Shree Cement
announced it has completed the transaction for the acquisition of 1.5 MTPA cement
grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the State of Haryana
on a going concern basis for an aggregate consideration of Rs 358.22 crore.

Earlier on 19 September 2014 Shree Cement announced that it has entered into a
Business Transfer Agreement (BTA) with Jaiprakash Associates for the acquisition of 1.5
MTPA cement grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the state
of Haryana on a going concern basis.On 28 May 2015 Shree Cement announced that
the company has commissioned clinker manufacturing unit of 1.5 Million Tons Per
Annum (MTPA) capacity at Baloda Bazar near Raipur in Chhattisgarh on 20 May 2015.
The Cement Mill Section was already commissioned on 24 February 2015.On 31
October 2015 Shree Cement announced that Cement Grinding Unit of 2 Million Tons Per
Annum (MTPA) Capacity of the company at Bulandshahr in Uttar Pradesh was
commissioned on 30 October 2015.On 19 February 2016 Shree Cement announced that
it has emerged as the highest bidder for Limestone deposit at Village Karhi Chandi
District-Baloda Bazar- Bhatapara of Chhattisgarh having estimated reserve of 155
million tons spread over 242 hectares in an e-auction conducted by the state
Government of Chhattisgarh on 18 February 2016. The official confirmation from Govt.
of Chhattisgarh declaring Shree Cement as the winner of the above deposit is
awaited.On 30 March 2016 Shree Cement announced that the company has
commissioned Autoclaved Aerated Concrete (AAC) Blocks Project having capacity of 3
Lac Cubic Meter Per Annum at Sikandrabad Bulandshahr in Uttar Pradesh on 29 March
2016.On 26 May 2016 Shree Cement announced its decision to set up a new clinker unit
of 2.8 MTPA at Raipur Chhattisgarh at an estimated cost of Rs 700 crore (excluding cost
of land and other infrastructure) to be financed through internal accrual. On 22 June
2016 Shree Cement announced that it has completed the expansion of grinding unit at
Aurangabad (Bihar) from 2 Million Tons Per Annum (MTPA) to 3.6 MTPA on 22 June
2016.On 18 July 2016 Shree Cement announced that the company participated recently
in the auction for coal linkages from South Eastern Coalfields Limited (a subsidiary of
Coal India Ltd.) for cement sector and won the coal linkage in the State of
Chhattisgarh. On 19 Jul 2016 Shree Cement announced that the company has
completed the up-gradation of Preheater of Clinker line of Unit-I at Beawar (Rajasthan)
on 15 July 2016. Consequently the Clinker Capacity of Unit-I stands increased from 1.1
MTPA to 1.4 MTPA.On 7 November 2016 Shree Cement announced that it has decided
to set up a new cement grinding unit of 3.6 MTPA with an initial plan to set up a
blending unit at village Rohi Udaipur Udasar District Sriganganagar Rajasthan. The
estimated cost of the new project is Rs 300 crore and it will be financed through
internal accruals. The project is expected to be completed by the quarter ending June
2018.

The company also announced expansion of existing cement grinding capacity at its
Aurangabad Bihar unit from 3.6 MTPA to 4.5 MTPA at an estimated cost of Rs 17 crore
to be financed through internal accruals. The company also announced its decision to
set up a new cement unit of 5.5 MTPA (considering 100% production based on PPC) in
Bihar at an estimated cost of Rs 335 crore to be financed through internal accruals. On
20 January 2017 Shree Cement announced that the Competition Commission of India
(CCI) has vide its order dated 19 January 2017 has passed an order against 7 cement
companies including Shree Cement for alleged contravention of provisions of the
Competition Act 2002 in respect of bids submitted by them in tender floated by Director
Supplies & Disposals Haryana for supply of cement at different locations within the state
and imposed a penalty of Rs 18.44 crore on the company. Shree Cement said that the
company has decided to file an appeal against the CCI order before the Competition
Appellate Tribunal.The Board of Directors of Shree Cement at its meeting held on 30
January 2017 approved setting up of an integrated cement plant having clinker capacity
of 2.8 MTPA and cement capacity of 3 MTPA at village Kodla in Karnataka. The total
investment for the new plant is estimated at Rs 1800 crore. The project will be financed
through internal accruals. The project is expected to be completed by the quarter
ending December 2018. On 3 March 2017 Shree Cement announced that it has
participated in the auction for coal linkage from South Eastern Coalfields Limited (a
subsidiary of Coal India Ltd.) for cement sector and won the coal linkage for the
company's cement plant at Raipur Chhattisgarh. On 1 November 2017 Shree Cement
announced that it has participated in the auction for coal linkage of Coal India Limited
(SECL) for Captive Power Plant sub-sector and won the coal linkages in the State of
Chhattisgarh.

On 14 December 2017 Shree Cement announced that it has lighted-up its Clinkerisation
Unit (KiIn-2) having capacity of 2.60 MTPA at Baloda Bazar near Raipur in
Chhattisgarh.The Board of Directors of Shree Cement at its meeting held on 11 January
2018 approved the acquisition of majority equity stake (minimum 92.83%) in Union
Cement Company (P.S.C.) (UCC) a company based in UAE for an enterprise value of
USD 305.25 million excluding cash and cash equivalent (for a 100% equity stake)
subject to closing adjustments.

The company has also signed the Definitive Agreement in this regard with the sellers.
Established in 1972 UCC is one of the leading cement manufacturers in the UAE and is
a listed company on the Abu Dhabi Securities Exchange. It has its operations in the
Emirate of Ras Al-Khaimah in the UAE with a clinker capacity of 3.3 MTPA and cement
capacity of 4 MTPA. It deals with a variety of cements like Ordinary Portland Cement
Sulphate Resisting Cement and Oil-Well Cement. UCC has a consistent track record of
stable performance. For the calendar year 2016 UCC reported consolidated revenue of
USD 153.42 million and EBITDA of 33.73 million (excluding investment and other
income). For the nine months ended 30 September 2017 the reported consolidated
revenue was USD 120.27 million and EBITDA of 25.97 million (excluding investment
and other income).With this acquisition the aggregate cement capacity of Shree Cement
will increased from present 29.3 MTPA to 33.3 MTPA. The proposed acquisition will help
Shree Cement create its first footprint outside India. On 15 February 2018 Shree
Cement announced that it has commissioned new Cement Grinding Unit (namely
Bangur Cement Unit) having capacity of 3.60 MTPA at Village Rohi Udaipur Udasar
District Sriganganagar in Rajasthan.On 19 February 2018 Shree Cement announced that
it has commissioned new Cement Grinding Unit having capacity of 2 MTPA at
Aurangabad in Bihar.

MARKET SIZE AND SHARE:

The company is one of the largest cement producers in Rajasthan (Beawar) and is the largest
single location manufacturer in Northern India. Created world record in fastest completion of 1.0
MTPA clinker capacity in 330 days against industry standard of 630 days. Shree Cement markets
its products under three Shree Ultra Jung Rodhak Cement, Bangur Cement and Tuff Cemento.
Shree also has a power generation capacity of 260 MW with plants located at Beawar and Ras in
Rajasthan, including waste heat recovery power plants of 46 MW capacity, which is the largest
such capacity in the global cement industry excluding China. The company is further expanding
its power capacity by setting up a 300 MW (2 x 150MW) power plant at Beawar which is likely
to be commissioned by the third quarter of 2011–12 and will take Shree's overall capacity to 560
MW. Total market capitalization of Rs. 64,382 Cr. as on 12th July, 2017 and ranked at 45th
position among all listed companies in India.

Turnover of the company for 2013-14 was ₹58.58 billion (US$820 million) and Net profit
was ₹7.872 billion (US$110 million), 2012-13 was ₹55.90 billion (US$780 million) and net
profit was ₹10.39 billion (US$150 million); 2011-12 was ₹34.53 billion (US$480 million) and
Net profit was ₹2.097 billion (US$29 million); for 2010-11 it was ₹36.34
billion (US$510 million) and net profit was ₹6.76 billion (US$95 million); In 2008-09 the
company posted a turnover of ₹21.29 billion (US$300 million) and generated operating profit
of ₹2.603 billion (US$36 million). 

Since 2006, it has more than quadrupled its production capacity both by expanding into new
areas and increasing the capacities of the existing plants. Shree Cement has been ranked 4th in
2017 Responsible Business Rankings developed by IIM Udaipur.Plants are located in Beawar,
Ras, Khushkhera, Jobner (Jaipur) and Suratgarh in Rajasthan, Laksar (Roorkee) in Uttarakhand,
Panipat in Haryana, Bulandshahar in UP, Raipur in Chhattisgarh and Aurangabad in Bihar. Shree
cements was clearly the second largest cement company in India (By Market Cap) in 2018.
SWOT ANALYSIS:-
STRENGTH
1. Shree Cement is one of the biggest cement manufacturers in North India.
2. It has successful operations in Rajasthan, Delhi, Haryana, Punjab, UP, J&K, Himachal etc.
3. It also plays in the power sector with Shree Power and Shree Mega Power brands.
4. It received Golden Peacock Award for Business Excellence
5. Shree Cement was rated among top 20 best companies to work for in India by Business
Today, Mercer and TNS (2008–09).
6. It also received Award for good performance in Cost Management by Institute of Cost and
Works Accounts of India (ICWAI)(2008–09).

WEAKNESSES
Here are the weaknesses in the Shree Cement SWOT Analysis:
1. It operates only in Northern States, so it does not have major presence other parts of the
country.
2. Brand awareness of Shree cements is lesser than other Indian Brands of Cement industry.
3. It does a lot lesser branding activities when compared to famous Indian brands.

OPPORTUNIRIES
1. It can expand its operations pan India.
2. It can also look for mergers and acquisitions with regional leaders in different Indian
markets.
3. Government policies would also be pro manufacturing as it wants to promote Indian
Manufacturing Sector, so this would surely help Shree cement to grow in the country.

THREATS

1. It would face strong competition from Indian Players when it tries to expand
operation pan India.
2. There is a high risk involved in expanding into other parts as the brand awareness is
lesser right now. So it should work on creating pan India brand awareness and then
enter other markets.
3. Increased operating costs & reducing marketing share