Cement is a key infrastructure industry.

It has been decontrolled from price and distribution on

1st March, 1989 and delicensed on 25th July, 1991. However, the performance of the industry
and prices of cement are monitored regularly. 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). Its performance is also reviewed by the Cabinet
Committee on Infrastructure. The Indian cement industry is one of the pillar sectors of our
economy as it accounts for a significant portion of total industrial output of our country. Further
it plays a dominant role in satisfying basic needs (house construction) of human kind. In view of
LPG, while India Cements Industry faces many challenges, it gets good opportunities to improve
sales. As a result of this, Cement Industry continues to adopt a series of readjusting and
restructuring measures including up gradation of technology. India is largest market with a great
potential, as the country possesses more than a billion people, vast territory and abundant
resources. The cement industry can enlarge global market shares so long as the industry players
firmly seize the business opportunities, promptly solve outstanding problems and improve weak
links in their existing production chain. The industry is expected to perform well in all the
dimensions and achieve a healthy growth in its operations. In order to manage stiff competition,
drastic steps are to be taken to reduce cost of production. In the changed environment,
application of financial management techniques would help the cement companies in increasing
their productivity and profitability. An attempt has been made in the present study to have an
insight into the examination of financial health of the cement companies in India.

Cement is a key infrastructure industry. Indian cement industry is 84 years old. It has 120 large
cement plants besides some 300 mini plants with installed capacity of about 163 million tones
and a production of 131.88 million Prices moved above rs.160-180 everywhere in last year. The
demand is expected to remain strong The Indian cement Industry not only ranks second in the
production of cement in the world but also produces quality cement which meets global
standards. , the industry faces a number of constraints in terms of high cost of power, high
railway tariff; high incidence of state and central levies and duties; lack of private and public
investment in infrastructure projects; poor quality coal and inadequate growth of related
infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize excess
capacity available with the cement industry, the government has identified the following thrust
areas for increasing demand for cement: -Housing development programmes; -Promotion of
concrete highways and roads; -Use of ready-mix concrete in large infrastructure projects; -
Construction of concrete roads in rural areas under Prime Ministers Gram Sadak Yojana. The
financial analysis has been done on

1) India Cements Ltd.

2) Birla Corporation Ltd.

3) Madras Cements

4) K.C.P.Ltd Chettinad cements ltd.