CEMENT INDUSTRY

MODULE-5

PRESENTED BY: GROUP 10

 Table of content
1. INTRODUCTION
2. NATURE OF INDUSTRY
3. BUSINESS ANALYSTICS
4. PORTER 5 FORCE MODEL
5. PESTEL ANALYSIS
6. PROCESS OF CEMENT MANUFACTURING
7. VALUE CHAIN
8. ANALYSTICS TECHNIQUES
9. HOW COMPANIES ARE USING BUSINESS ANALYTICS
10. KPI
11. DASHBOARD
12. BUSINESS ANALYTICS COMPONENTS
13. SOFTWARE USED
14. TOP GLOBAL COMPANY
15. TOP INDIAN COMPANY
 INTRODUCTION

• The cement industry is a vital component of

construction, providing the essential binding
material for buildings, bridges, roads, and
various infrastructure projects. Involves
production of cement, a key component of
concrete. Cement is produced in more than
150 countries all over the world.
NATURE OF CEMENT INDUSTRY
• Relies heavily on limestone and clay for making cement.

• Uses a lot of energy to produce cement.

• Essential for building things like houses and roads.

• Big factories make cement in large amounts.

• Production affected by economic ups and downs.

• Competition influenced by new technology, what people want, and rules

from the government.
BUSINESS ANALYSTICS IN CEMENT INDUSTRY

• Data insights to optimize operations across production, supply chains, and

market trends.

• With advanced tech like AI, decision-making is enhanced, driving

innovation.

• In the cement industry, data helps companies make better decisions about
making cement, getting materials, and selling it.

• This saves resources, sells more, and helps the environment. Smart
computers make this even better.
 Porter's Five Forces Model

• Threat of New Entrants:

 Moderate to low threat due to high initial capital requirements for
setting up cement plants and distribution networks.
 Established brands and economies of scale act as barriers to entry.
• Bargaining Power of Suppliers:
 Moderate bargaining power as cement companies require raw
materials such as limestone, gypsum, and coal.
 Suppliers' bargaining power can fluctuate based on availability and
pricing of raw materials.
• Bargaining Power of Buyers:
 Moderate to high bargaining power as buyers (construction
companies, government agencies) purchase cement in large volumes.
 Buyers can easily switch between suppliers based on price, quality,
and availability.
 Porter's Five Forces Model
4. Threat of Substitutes:
 Low threat as there are few substitutes for cement in most construction applications.
 Alternative materials like steel or composite materials may be substitutes in specific
applications but are not direct replacements.

5. Rivalry Among Existing Competitors:

 High rivalry due to numerous cement companies competing for market share.
 Price competition is common, leading to slim profit margins.
 Differentiation through branding, product quality, and distribution channels is crucial
for competitive advantage
 PESTEL ANALYSIS
 Political stability.

01 Political  Taxation policies

• Exchange rates affecting import/export

02 Economic • Interest rates influencing investment in

infrastructure projects.

• Consumer preferences and awareness

03 Social
PESTEL • Population growth and demographic trends
ANALYSIS
 Automation and efficiency improvements
04 Technological
 Adoption of digital technologies for
marketing, distribution

05 Environment  Related to emissions, waste management

 Pressure for more eco-friendly cement

production methods.
06 LEGAL
Process of particular cement company
 Value Chain Model
The cement industry value chain can be broken down into three primary stages:
Stage Description
Management, finance, accounting, legal, and other support services
Firm Infrastructure
essential for the functioning of the company.
HRM (Human Resource Recruitment, training, and management of employees to ensure
Supporting
Management) effective workforce utilization.
activity
Sourcing raw materials, machinery, and equipment required for cement
Procurement
production at optimal costs and quality.
Research, innovation, and development of new technologies to improve
Technology Development
production processes and product quality.
Handling the transportation and storage of raw materials from suppliers
Inbound Logistics
to the production facilities.
Cement production processes, including crushing, mixing, and heating
Operations
raw materials to produce clinker.
Primary
Packaging, storage, and transportation of finished cement products to
Outbound Logistics activity
distributors, retailers, and customers.
Promotion, branding, advertising, and sales activities to attract
Marketing and Sales
customers and drive demand for cement products.
Providing after-sales support, including technical assistance, product
Service
warranties, and customer service.
 ANALYTICS TECHNIQUES
1. Descriptive Analytics:
• Examines historical production data of a cement company to understand trends in output levels and
identify peak production periods.

2. Diagnostic Analytics:
• Investigates the reasons behind variations in production output, such as equipment malfunctions or
raw material shortages.

3. Predictive Analytics:
• Forecasts future demand for cement products based on construction project forecasts, economic
indicators, and historical sales data.

4. Prescriptive Analytics:
• Recommends optimal production schedules to maximize efficiency and minimize production costs
while meeting customer demand.
HOW COMPANIES ARE USING BUSINESS ANALYTICS

1. Production optimization
2. Supply chain management
3. Market analysis
4. Customer insights
5. Risk management
6. Sustainability initiatives
7. Financial analysis
KPIs used in Cement Industry:

• Production Efficiency
Prod • Production Volume
ucti
on • Downtime

Q • Product Quality Compliance

u • Defect Rate
al
it
y
• Energy Consumption per Unit of Cement
Cos
t
• Raw Material Utilization
Ma • Cost per Tonne
nag
em
ent • Delivery Lead Time
Sales & • Customer Satisfaction Score
Distributi • Environmental Impact
on
 DASHBOARD

Regarding
Availability,
performance ,
Quality of
cement

Regarding units
 Business Analytics Components
1. Business Context

Market dynamics: Understanding the supply and demand for cement, as well as
pricing trends, is crucial for making informed decisions about production levels and
pricing strategies.

Customer needs: Different types of construction projects require different types

of cement. By understanding customer needs, cement companies can develop
targeted products and services.

Operational efficiency: Business analytics can help companies identify areas for
improvement and optimize their operations.
2. Technology

Business analytics relies on a variety of technologies to collect, store, analyze, and

visualize data. In the cement industry, some of the relevant technologies include:

• Enterprise resource planning (ERP) systems

• Sensor technology

3. Data Science

• Demand forecasting for production planning.

• Supply chain optimization for cost reduction.
• Process optimization for productivity enhancement.
• Market segmentation for targeted marketing.
• Risk management for business continuity.
 Software's used by cement industry

 Enterprise Resource Planning (ERP) Software:

 Production Management and Optimization

Software:

 Asset Management Software:

 Customer Relationship Management (CRM)

Software:
TOP COMPANIES OF CEMENT GLOBALLY
TOP COMPANIES OF INDIAN CEMENT
THANK YOU