58870441 Indian Cement Industry

8/19/2019 58870441 Indian Cement Industry

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SCHOOL OF BUSINESS

A Study on Indian cement industry

Guided By:-

Prof Sami! s"ome

Su#mitted By:-

A$I% &U$A' (A)A*

Acknowledgement

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.&no/0ede is an e12erience ained in 0ife3 it is t"e c"oicest

2ossession3 /"ic" s"ou0d not #e s"e04ed #ut s"ou0d #e "a22i0y

s"ared /it" ot"ers It is t"e su2reme art of t"e teac"er to

a/a!en 5oy in creati4e e12ression and !no/0ede6

%"e fee0in of a tas! /e00 done is incom20ete /it"out i4in t"e

ac!no/0edment /"ere due3 so #efore /e 2roceed furt"er 7e

/is" to s2end some time in e12ressin our ratitude to a00

t"ose /"o "a4e #een in4o04ed in uidin us and "e02in us out

durin our re2ort

7e /ou0d 0i!e to i4e s2ecia0 t"an!s8 to Prof. Samik Shome

for "is uidance durin t"e re2ort )es2ite of "is demandin

sc"edu0e3 "e #esto/ed e4ery 2ossi#0e su22ort to us3 so as to

carry on t"e re2ort /or! /it"out any "indrance

7e /ou0d 0i!e to t"an! 4a0ua#0e /or!s of 2u#0is"ers and

aut"ors /"ose /or! "e02ed me durin t"e 2ro5ect

Table of Contents

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%o2ic Pae

NoE1ecuti4e summary +

+ Introduction to Indian cement industry 9

++

History of t"e Indian Cement Industry 9

+9Current Scenario

9 'e4ie/ of Literature ;

< Ana0ysis +

<+ Introduction +

<9 $a5or 20ayers in Indian Cement Industry

= Nature of Com2etition

+

<< $ar!et Sementation 99

<<

+

Geora2"ica0 Sementation 99

<<

9

Customer Sementation 9

< PES%EL Ana0ysis on Indian Cement

Industry

9;

<

+

Po0itica0 9;

<

9

Economic 9>

<

<

Socia0 9?

<

%ec"no0oica0 9@

<

En4ironmenta0 <

<

;

Lea0 <+

< Business di4ersication DCon0omerate or

Standa0one

<9

<; Conso0idation D $erers = Acuisitions <;

<> Internationa0 E12osure of Indian Cement

Industry

<@

<? %ec"no0oy Intensity <<? Cement Production Process <

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+

<?

9

Ado2tion of Latest %ec"no0oies

<?

<

'esearc" and )e4e0o2ment ;

<@ $ar!etin Initiati4e ?

<+ Future Out0oo! +

<++ Com2arison /it" Ot"er Countries <

<+9 Conc0usion

'eference

EXECUTIVE SUMMA!

%"e cement industry is one of t"e !ey industries in India

Cement industry is a ra2id0y ro/in sector "ea4i0y ta1ed #y

t"e o4ernment %"e Indian cement industry is one of t"e

0arest user of 2o/er3 is t"e t"ird 0arest consumer of coa0 in

t"e country As Limestone is found in a#undance a00 o4er t"ecountry3 t"e cement industry "as a "ue 2otentia0 to ro/ %"e

Indian Cement Industry com2rises +? 0are cement 20ants /it"

around ; mem#er com2anies %"e ma5or 20ayers are-Grasim

Industries Ltd3 ACC Ltd3 Udai2ur Cement 7or!s Ltd3 Am#u5a

Cements Ltd3 Century %e1ti0es = Inds Ltd3 India Cements Ltd3

S"ree Cement Ltd3 $adras Cements Ltd3 Bir0a Cor2oration Ltd3

)a0mia CementB"arat Ltd %"e industry is ro/in manifo0d

due to increased industria0 acti4ity3 rea0 estate #usiness3ro/in construction acti4ity3 and e12ansion in t"e

infrastructure sector %"e 2roduction and consum2tion of

cement to a 0are e1tent indicate a country8s 2roress %"e

0o#a0 cement "as a0/ays #een a ood indicator of economic

acti4ity3 as industry ro/t" 2atterns consistent0y 2oint to t"e

direction in /"ic" t"e economy is 0i!e0y to mo4e India is t"e

second 0arest cement 2roducer in t"e /or0d after C"ina and

"as ot a "ue cement industry 7it" t"e o4ernment of Indiai4in #oost to 4arious infrastructure 2ro5ects3 "ousin faci0ities

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and road net/or!s3 t"e cement industry in India is current0y

ro/in at an en4ia#0e 2ace Cement industry 20ays a 4ita0 ro0e

in t"e economic de4e0o2ment of t"e country )omestic cement

manufacturin industry is oin t"rou" a tumu0tuous 2"ase It

is #att0in 2rota#i0ity /oes %"is o4era00 ro/t" in cement

industry "as a sinicant im2act on t"e o4era00 0e4e0 of

ant"ro2oenic reen"ouse as emissions %"e 2roduction of

eac" tone of cement 0eads to emissions of rou"0y +9 tons of

car#on dio1ide

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". Introd#ction to Indian Cement

Ind#str$

Cement Industry is one of t"e most im2ortant industries /it"

res2ect to nationa0 ro/t" and de4e0o2ment Cement is a

mi1ture of si0icates and a0uminates of ca0cium3 formed out of

ca0cium o1ide3 si0ica3 a0uminum o1ide and iron o1ide %"e

demand for cement is corre0ated /it" t"e momentum of

acti4ities in t"e nancia03 rea0 estate and infrastructure sectors

of t"e nation )ue to cost contro0 measures and tec"no0oy u2

radation3 t"e Indian cement industry is 0o#a00y com2etiti4e

%"e Indian Cement Industry is one of t"e 0arest users of 2o/er

in t"e country It is a0so t"e t"ird 0arest consumer of coa0 in t"e

country Since 0imestone is found in a#undance a00 o4er t"e

country3 it "as "ue o22ortunities for ro/t" and de4e0o2ment

".". %istor$ of Indian Cement

Ind#str$

%"e rst manufacturer of cement /as #y a Ca0cutta-#ased

com2any in +??@ But t"e rst endea4or to manufacture

cement in an oranied /ay commenced in $adras In t"e year

+@3 Sout" India Industries Limited #ean manufacturin

Port0and cement Ho/e4er3 t"e com2any "ad to sto2 t"e

2roduction as it /as not successfu0

%"e rst 0icensed cement manufacturin unit /as set u2 #y

India Cement Com2any Ltd at Por#andar3 Gu5arat in +@+

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)urin t"e First 7or0d 7ar3 a "ue ro/t" /as seen in t"e

cement industry After t"e /ar in t"e 0ater years t"e industry

/itnessed "i" ro/t" rate es2ecia00y in terms of

manufacturin units3 insta00ed ca2acity and 2roduction %"is

2"ase is referred to as the &ascent Stage of Indian Cement

Industry

)urin t"e ear0ier years3 demand of t"e cement /as 0o/ and

t"e su220y /as muc" more t"an t"e mar!et demand %"e

Indian 2u#0ic at rst did neati4e o2inion aainst t"e cement

manufactured in India unti0 o4ernment "ad to come in

#et/een and 2ro4ided 2rotection to t"e 2roducers #y

encourain coo2eration amon t"e manufacturers

In +@9>3 t"e Concrete Association of India /as formed /it" t"e

o#5ecti4e of ma!in cement more 2o2u0ar amon t"e 2u#0ic in

a 2ositi4e manner and to increase cement consum2tion

Later in +@<3 t"e Cement $ar!etin Com2any of India C$I

/as formu0ated to 2romote t"e sa0e and distri#ution of cement

at reu0ated 2rices %"e Indian cement industry /itnessed a

ne/ #einnin /"en ++ cement com2anies ama0amated to

form t"e Associated Com2anies Limited ACC Post

inde2endence t"e ro/t" in t"e cement industry /as 4ery 0o/

due to 4arious factors 0i!e 0o/ 2rices3 s0o/ ro/t" in additiona0

ca2acity and risin cost %"e o4ernment inter4ened se4era0

times to #oost t"e industry3 #y increasin 2rices and 2ro4idin

nancia0 incenti4es But it "ad 0itt0e im2act on t"e industry

In +@;3 t"e 2rice and distri#ution contro0 system /as set u2 to

ensure fair 2rices to reduce reiona0 im#a0ances and reac" se0f

suciency %"e o4ernment se4ere0y "e0d #ac! t"e cement

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industry durin +@;@-+@?9 It inter4ened direct0y #y e1ercisin

contro0 o4er 2roduction3 ca2acity and distri#ution of cement

and indirect0y #y contro00in 2rices In +@>>3 t"e o4ernment

set "i"er 2rices for cement #ut sti00 t"e ro/t" rate /as not u2

to t"e mar!

In +@?93 t"e o4ernment introduced a uota system A ;;;J

of uota /as created for sa0es to o4ernment and rea0 estate

de4e0o2ersJ uota /as im2osed for ne/ and sic! units3 and

t"e remainin <<J /as 0eft to #e so0d in t"e o2en mar!et In

+@?@3 after 0i#era0iation3 t"e cement industry /as i4en fu00

freedom to meet t"e c"a00enes in o2en mar!et /"ic" 0ed to an

acce0erated ro/t" in t"e industry

".'. C#rrent Scenario

%"e Indian cement industry is t"e second 0arest 2roducer of

ua0ity cement and occu2ies a strateic 20ace in t"e nationa0

economy due to its im2ortance in ot"er sectors 0i!e

construction3 trans2ortation3 coa0 and 2o/er It is enaed in

t"e 2roduction of diKerent 4arieties of cement suc" as Ordinary

Port0and Cement OPC3 Port0and Poo0ana Cement PPC3 Oi0

7e00 Cement3 Su02"ate 'esistin Port0and Cement3 7"ite

Cement3 etc

%"e Indian Cement industry com2rises +? 0are cement 20ants

/it" around ; mem#er com2anies %"e insta00ed ca2acity of

0are cement 20ants /as estimated to #e 9+@+> mi00ion tonne

durin 9@-+ as on $arc" 9@%"ere are <; mini and

/"ite cement 20ants /it" an insta00ed ca2acity of +++ mi00ion

tonne

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Table "( Cement Prod#ction ) *es+atches

)escri2tion Se2-+

Au-@

Se2-@

9+

-++

9@-

9+

A2r-Se2

Cement

Production+9

+9?

++?<

?+

>>99

Cement

)es2atc"es+9;

+9?

9++>

?++

>;

Source: Cement Manufacturers' Association

Cement 2roduction durin A2ri0 to anuary 9@-+ /as +<;>

mi00ion tonnes as com2ared to ++9 mi00ion tonnes durin t"e

same 2eriod for t"e year 9?-@ )es2atc"es /ere estimated

at +9@@> mi00ion tonnes durin A2ri0 to anuary 9@-+

/"ereas durin t"e same 2eriod for t"e year 9?-@3 it stood

at ++> mi00ion tonnes

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'. e,iew of -iterat#re

Cement 2ro4es to #e an area of interest for many researc"ers

#ecause of its o4era00 im2act on t"e economic de4e0o2ment on

t"e country %"ere is a 0ot of researc" /or! done on cement

industry Cement industry "as #een ana0yed #y many

indi4idua0s and researc"ers %"ey found many 4a0ua#0e insi"ts

in t"e industry and made t"e data a4ai0a#0e to a00 %"ere /ere

many studies conducted to !no/ t"e en4ironmenta0 im2acts of

cement 2roduction3 t"e current mar!et trends3 %rade

2ers2ecti4e of Indian cement industry and detectin carte0s in

t"e cement industry For t"e 2ur2ose of t"e current study3 a 0ot

of artic0es3 researc" 2a2ers and re2orts "a4e #een studied and

ana0yed to ain t"e !no/0ede a#out cement industry as a

/"o0e %"e fo00o/in artic0es "a4e #een ta!en to et an in

de2t" !no/0ede and insi"t a#out t"e cement industry

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Accordin to L G Burane and S"ruti(amini 9?3 t"e

Cement industry is a ra2id0y ro/in sector "ea4i0y ta1ed #y

t"e o4ernment %"e industry is ro/in manifo0d due to

increased industria0 acti4ity3 rea0 estate #usiness3 ro/in

construction acti4ity3 and e12ansion in t"e infrastructure sector

%"e issue "ere 0ies in t"e tec"no0oy used3 fue0 eciency and

2o/er eciency Since3 cement is a "i" #u0! and 0o/ 4a0ue

commodity3 com2etition is 0oca0ied #ecause t"e cost of

trans2ortation of cement to distant mar!ets resu0tin in t"e

2roduct #ein uncom2etiti4e in t"ose mar!ets In +@?@3 a00 2rice

and distri#ution contro0s on sa0e of cement /ere /it"dra/n and

in +@@+ t"e industry /as de-0icensed in order to acce0erate

ro/t" and induce moderniation %"e industry "as a0so

/itnessed a num#er of merers and acuisitions and entry of

forein ma5ors in t"e cement mar!et

Accordin to Arindam C"a!ra#arti3 eta0 9?3 t"e domestic

cement manufacturin industry is oin t"rou" a tumu0tuous

2"ase 7"i0e it is #att0in 2rota#i0ity /oes on one "and3 it a0so

"as to contend /it" t"e increasin 0e4e0 of en4ironmenta0

acti4ism t"at is !een0y scrutiniin its 4arious actions and t"eir

im2act on en4ironment and society %"us cement industry "as

to 2roacti4e0y enae itse0f in t"ree dimensions of 2rota#i0ity3

en4ironmenta0 consciousness and socia0 o#0iations t"at /i00

earn t"e industry t"e ri"t to ro/ and t"e 0icense to o2erate

%"e cement com2anies "a4e to em#ar! u2on a set of 2roacti4e

acti4ities t"at im2acts a00 t"ree dimensions of #a0anced ro/t"

%"ey suested a set of 2roacti4e actions t"at com2anies may

ado2t accordin to t"eir suita#i0ity suc" as: Loo! to conso0idate

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/"ere 0on term 20ayers may 0oo! to ro/ t"eir o2erations

eit"er oranica00y or inoranica00y3 2roacti4e0y c"ane 2roduct

mi1 /it" /"ic" t"ey suest t"e com2anies to focus u2on

'eady $i1 Concrete usae and enter '$C #usiness as it "e02s

in reducin 2o00ution %"e ot"er suestions are to de4e0o2 a

0oistics mode0s to su22ort c"anin 2roduct mi13 0oo! for

a0ternate fue0 sources as 2o/er and fue0 cost is t"e second

most im2ortant e0ement of o2erations cost after ra/ materia0

cost By o2tima00y uti0iin t"e e1istin 0imestone uarries3

com2anies can sa4e 2recious resources Fina00y3 t"e aut"or

suests t"e com2anies to underta!e a continuin dia0o /it"

t"e aKected community so t"at it creates a community friend0y

imae across t"e society Actions suested a#o4e im2act t"e

t"ree dimensions %"is /i00 "e02 com2anies to ain ad4antae

o4er t"eir com2etitors

Accordin to C A Hendric!s3 eta0 9 cement is t"e most

im2ortant #ui0din materia0 Cement consum2tion and

2roduction is c0ose0y re0ated to construction It is a0so one of t"e

most 2roduced materia0s in t"e /or0d it is t"e most im2ortant

construction materia0 Cement 2roduction is "i"0y enery

consum2tion 2rocess a0so 2roduction of cement 2roduces

reen"ouse ases 0i!e CO9 It contri#utes to a#out J tota0

0o#a0 car#on dio1ide And a#out "a0f of it comes from

ca0cinations and "a0f from com#ustion 2rocess A /ide rane of

o2tions e1ist to reduce CO9 emission %ec"no0oica0

ad4ancements are addin to reduction of car#on dio1ide from

cement 2roduction

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Accordin to Pau0 9?3 Cement Industry "as a0/ays #een a

ood indicator of economic acti4ity3 as industry ro/t" 2atterns

consistent0y 2oint to t"e direction in /"ic" t"e economy is 0i!e0y

to mo4e %"e artic0e e1amines 2resent dri4ers of ro/t" in

cement industry and some s2ecia0 demands 20aced u2on

automation su220iers dea0in /it" emerin mar!ets Pressure

of maintainin t"e standards im2orted #y t"e cement

mu0tinationa0s3 t"ree main trends are to #e o#ser4ed on t"e

mar!et20ace: 2roducti4ity3 safety and en4ironmenta0

res2onsi#i0ity Cement 20ant o2erators "a4e four 2rimary

2roducti4ity oa0s: t"e reduction of do/ntime3 t"e reduction of

enery consum2tion3 im2ro4ements in 2roduct ua0ity and t"e

inte00ient use of maintenance resources Cement 20ant

o2erators are in4estin "ea4i0y in systems aimed at im2ro4in

20ant safety %"e main attention "as #een on im2ro4ed

monitorin of 2rocesses and t"e insta00ation of modern

tec"no0oy aimed at 0essenin t"e ris! of e1traordinary e4ents3

suc" as e120osions By 0o/erin t"e amount of time needed to

maintain t"e 20ant3 and ensurin t"at maintenance cyc0es

around t"e 20ant are o2timied3 20ant o2erators can rea2

sinicant cost sa4ins

IC'A Limitedanuary 9+3 in its re2ort .Indian Cement

Industry6 says t"at /it" +< cement 20ants and a tota0

insta00ed ca2acity of around 9@ mi00ion tonnes 2er annum

$%PA #ot" as of $arc" 9@3 t"e Indian cement industry is

t"e second 0arest in t"e /or0d3 t"e 0arest #ein C"ina

)emand for cement re2orted stron ro/t" durin t"e 2eriod

+< , P a e



99-< to 9>-? e4en as ca2acity addition remained

moderate %"e Indian cement industry /itnessed stron

ro/t"3 /it" demand re2ortin a com2ounded annua0 ro/t"

rate CAG' of @<J and ca2acity addition a CAG' of ;J

#et/een 9- and 9?-@ %"is 0ed to ti"tenin of t"e

su220y-demand situation and "ardenin of 2rices3 /"ic"

remained stron ti00 t"e rst "a0f H+ of 9@-+ But due to

ca2acity additions3 ca2acity uti0iations "a4e #een 2us"ed

do/n to ?<J from around @J in 9?-@3 due to /"ic"

cement 2rices "a4e come under 2ressure since t"e < rd uarter

of 9@-+ IC'A #e0ie4es t"at t"e e1tent to /"ic" 2ressures

/i00 #e fe0t /i00 de2end on t/o factors3 #ot" of /"ic" are to

some e1tent under contro0 of manufacturers One3 t"e 2"asin

out or deferment of t"e announced ca2acity additions And t/o3

t"e e1tent to /"ic" t"e s"ift to/ards Ordinary Port0and Cement

OPC reduces t"e eKecti4e ca2acity of t"e industry 7"i0e IC'A

e12ects a00 cement manufacturers to face 2ressures on

rea0isations and marins in t"e medium term3 t"e im2act /i00

not #e t"e same for a00 com2anies %"ose /it" 0eaner cost

structures3 0ocation ad4antaes3 stron ca2ita0 structures3 and

eora2"ica00y dis2ersed 20ants /ou0d #e in a #etter 2osition to

a#sor# t"e im2act of t"e antici2ated softenin in 2rices and

dec0ined in ca2acity uti0isation

Accordin to Ernst 7orre00 and C"ristina Ga0its!y $arc" 9?3

enery eciency is an im2ortant com2onent of a com2any8s

en4ironmenta0 stratey As t"e US manufacturers face an

increasin0y com2etiti4e 0o#a0 #usiness en4ironment3 t"ey

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see! o22ortunities to reduce 2roduction costs /it"out

neati4e0y aKectin 2roduct yie0d or ua0ity %"is re2ort reMects

an in-de2t" ana0ysis of t"e cement industry3 and identies

enery sa4ins and car#on dio1ide emissions reduction

2otentia0s In t"eir ana0ysis3 t"e cement industry inc0udes

esta#0is"ments enaed in manufacturin "ydrau0ic cements3

inc0udin Port0and3 natura03 masonry3 and 2oo0ana cements

%"e "istoric trends for enery eciency in t"e US cement

industry and t"e cost-eKecti4e enery and car#on dio1ide

sa4ins t"at can #e ac"ie4ed in t"e near future are ana0yed in

t"is re2ort %"e cost of enery as 2art of t"e tota0 2roduction

costs in t"e cement industry is sinicant Coa0 and co!e are

current0y t"e 2rimary fue0s for t"e sector $ost recent0y3 t"ere is

a s0i"t increase in t"e use of /aste fue0s3 inc0udin tires

Bet/een +@> and +@@@3 2rimary 2"ysica0 enery intensity for

cement 2roduction dro22ed +Jyear from >< $Btus"ort ton to

< $Btus"ort ton Car#on dio1ide intensity due to fue0

consum2tion and ra/ materia0 ca0cinations dro22ed +;J3 from

;@ 0# Cton of cement <+ tctonne to + 0# Cton cement

9; tctonne )es2ite t"e "istoric 2roress3 t"ere is am20e

room for enery eciency im2ro4ement a re0ati4e0y 0are

2otentia0 for im2ro4ed enery manaement 2ractices e1ists

From t"e im2act of trade 2ers2ecti4e 9@3 Cement is t"e

industry /"ic" #ec!ons t"e country8s economy and "as

resu0ted in construction of sma00 #ui0dins to t"at of t"e mu0ti

storied #ui0din It consists of rinded 0imestone3 c0ay and si0ica

/"ic" is #ein dried and mi1ed into a com2osite mass Semi-

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nis"ed form of C0in!er is #ein formed /"en t"is mi1ture is

#ein "eated3 t"en t"is c0in!er is rounded and coo0ed in air to

form cement 7it" 0i#era0iation and 0o#a0iation of t"e

economy a0terations /ere #ein made to sur4i4e in t"e 0o#a0

economy $an2o/er costs /ere reduced3 tec"no0oies /ere

#ein im20emented and moderniation /as a0so done %i00

anuary 9> /as t"e im2ort duty /as +9J and after /"ic"

t"is reduced to ni0 and sti00 it8s into eKect From 9++ t"ere /i00

#e an im2ort duty on cement and cement c0in!ers ca00ed as t"e

C0ean Enery Cess3 /"ic" /i00 #e co00ected as a duty of e1cise

from coa0mines

Accordin to En4ironmenta0 Aency of Bristo0 93 t"e

o#5ecti4e is to de0i4er t"e 2erformance of t"e industry in suc" a

/ay t"at it resu0ts in t"e en4ironmenta0 #enet %"e 20an

inc0udes t"e statutory and non-statutory acti4ities /it" set of

"i" 0e4e0 o#5ecti4es to #e fu000ed %"e Cement Industry uses

t"is 20an in En0and and 7a0es to 2erform en4ironmenta0

tarets3 to com2are t"e 2erformance aainst t"e tarets and

re2ort to 2u#0ic at 0are t"rou" t"e Britis" Cement Association

BCA%"e !ey as2ects /ere concentrated on &ey

En4ironmenta0 Issues3 'a/ materia0s3 Use and dis2osa0 of

manufactured cement 2roducts3 Use and dis2osa0 of

manufactured cement 2roducts

Accordin to L0oyd %im#er0a!e 9>3 Cement industry is

res2onsi#0e for t"e sustaina#0e de4e0o2ment It c0ear0y "as an

im2act o4er t"e 2resent and t"e future $anufacturin 2rocess

in4o04es emissions of ases /it" c0imate c"ane Action #y

indi4idua0 com2anies3 t"e CSI "as: Produced and u2dated a

+; , P a e



2rotoco0 for re2ortin and ma!e an account of CO9 emissions

t"at "as #een esta#0is"ed a00 CO9 emissions from t"e cement

industry3 set of uide0ines on t"e use of fue0s and materia0s and

a consistent a22roac" for sustaina#0e de4e0o2ment $onitorin

and re2ortin t"e common emissions of 2rotoco0 t"at identies

measurement met"ods for nitroen o1ides3 su0fur com2ounds3

and 2articu0ates and denes to o#tain a "o/ to o#tain

ner2rint of !ey micro-2o00utant emissions CSI "as

esta#0is"ed a Senior Ad4isory Board to ad4ise t"e CSI 0eaders

on critica0 issues

Accordin to 'e5ie Geore Pa00at"itta 9? Can U0tratec" Be

%"e Ne1t $ar!et Leader. Cement industry is a "omoenous

industry /it" +9 0are cement 20ants and more t"an < sma00

cement 20ants in India Lare com2anies are acuirin sma00er

ones Aditya Bir0a Grou2 ABG acuired manaement contro0 of

L=% Cement on +>t" une 9<3 and renamed it U0tra%ec" It

#ecame t"e second 0arest cement 2roducer and t"ird in terms

of 2rota#i0ity Bot" U0tratec" and ACC "a4e increased sa0es

ro/t" and ca2acity uti0iation U0tratec" "as an ad4antae of

its ra/ materia0s /it" 0eases "i"er ua0ity of ra/ materia0s

Bot" ACC and U0tratec" en5oy 0o/er fue0 cost U0tratec" started

to s/itc" to coa0 as fue0 So3 ACC may 0ose its ad4antae in

near future U0tratec" is a 2art of Aditya Bir0a Grou2 /"ic" "as

more 2romoters3 "i"est ua0ity "uman ca2ita03 "i"er

o2eratin 0e4erae and #etter ua0ity 0imestone t"an ACC Acc

en5oys cost ad4antae o4er U0tratec" in terms of 2o/er

Because U0tratec" uses Na2"t"a and Fue0 Oi0 #ased Po/er

P0ants /"ic" are of "i"er cost and ACC uses coa0 #ased 20ants

+> , P a e



It manaes ood re0ations"i2s /it" im2orters3 e12orters3

distri#utors3 /are"ouse 2ro4iders3 /"o0esa0ers3 retai0ers and

dea0ers

Accordin to $r Sumit Baner5ee 9@3 main0y t"ere are <

ty2es of 2rocesses to 2roduce cement D /et3 semi-dry3 and dry

2rocesses %"e dry and semi-/et 2rocesses are more fue0-

ecient )iKerent 4arieties of cements are Ordinary Port0and

Cement ray cement account for >J of tota0 consum2tion3

Port0and Poo0ana Cement account for +?J of tota0

consum2tion3 7"ite Cement3 Port0and B0ast Furnace S0a

Cement and S2ecia0ised Cement Asia accountin for ;;J of

t"e 0o#a0 demand C"ina /as t"e /or0d8s 0arest consumer of

cement in 9? and accounted for ?>J of tota0 cement

consum2tion India "as t"e 0o/est 0e4e0 of 2er ca2ita cement

consum2tion

%"e current study on Indian cement industry is diKerent from

t"e 2re4ious studies in t"e fo00o/in manner An in de2t"

ana0ysis of t"e Indian cement industry is done %"e to2 +

com2anies are ana0yed A0so t"e industry is ana0yed in terms

of 2o0itica03 en4ironmenta03 tec"no0oica0 and economica0

ana0ysis %"e im2act of t"e cement industry on t"e economic

de4e0o2ment is ana0yed %"e im2act of "o/ ot"er re0ated

sectors 0i!e construction and rea0 estate sectors im2act t"is

sector /as ana0yed %"e main t"in a#out t"e re2ort is t"at it

does not concentrate on sin0e to2ic %"is re2ort is i4in

information on diKerent as2ects re0ated to cement industry

+? , P a e



b/ecti,e of the St#d$

%"e cement industry "as #een considered as t"e #ac!#one of anation8s economy3 it is #ecause3 t"e a0most a00 ot"er industries

are direct0y or indirect0y inter-re0ated to t"is industry As

mentioned a#o4e3 it is #ase of a00 ot"er industries3 so it /ou0d

#e 4ery interestin and im2ortant to !no/ t"e eKect of t"is

industry ie cement industry on ot"er industries 0i!e 2o/er3 rea0

estate3 trans2ort3 minin etc At t"e same time3 it is a0soim2ortant to !no/ t"e contri#ution of cement industry in t"e

Nationa0 economy #y usin diKerent 2arameters 0i!e e12ort

re0ated acti4ities3 ro0e of tec"no0oy etc In addition to t"is3 /e

a0so /anted to !no/ a#out t"e no of 20ayers in t"e concerned

mar!et3 and t"eir res2ecti4e mar!et s"are in order to !no/ t"e

intensity and t"e de2t" of t"e industry Cement is one of t"eindustry3 /"ere 0ot of researc" and de4e0o2ment can #e done

/it" t"e ad4ancement in tec"no0oy3 /"ic" furt"er ma!es t"e

"ea0t" of t"e industry more ro#ust A2art from t"is3 /e a0so

/anted to !no/ a#out t"e dominance of Indian cement industry

in t"e 0o#a0 mar!et3 /"ic" 20ays an im2ortant ro0e in t"e

2o0itica0 as /e00 as t"e economica0 re0ation of India /it" rest oft"e /or0d

0. Anal$sis of Cement ind#str$

+@ , P a e



0." Introd#ction

Cement industry is one of t"e core industries in any country3 so

in de2t" ana0ysis of cement industry is 4ery im2ortant %"ere

are diKerent as2ect for our study3 /"ic" /i00 co4er $ar!et s"are

and Nature of com2etition3 $ar!et sementation3 Po0icy

frame/or! PES%EL ana0ysis3 Business di4ersication3 $erers

= acuisition3 Internationa0 e12osure3 %ec"no0oy intensity3

$ar!etin initiati4es3 Future out0oo! and Com2arison /it" ot"er

countries A00 t"ese as2ects /i00 2ro4ide in de2t" !no/0ede

a#out t"e cement industry

0.'. Ma/or +la$ers in Indian Cement

Ind#str$ ) &at#re of Com+etition

9 , P a e



1ig#re " (To+ "2 Ma/or +la$er in Indian Cement Ind#str$

'223425

+>J

++J

+J

+J;JJJJ

<J

<J

9?J

Grasim Industries Ltd A C C Ltd Udai2ur Cement 7or!s Ltd

Am#u5a Cements Ltd Century %e1ti0es = Inds Ltd India Cements Ltd

S"ree Cement Ltd $adras Cements Ltd Bir0a Cor2oration Ltd

)a0mia Cement B"arat Ltd 'est <9

Source: Pro/ess3 C$IE

0.'.". ACC -IMITE*

ACC is Indias 0eadin manufacturer of cement and concrete

ACC8s "as +; modern cement factories and more t"an ready

mi1 concrete 20ants t"rou"out t"e country %"e distri#utionc"anne0 "as 9 sa0es oce3 @ dea0ers and se4era0 ona0

9+ , P a e



oces %"e "uman ca2ita0 in4o04ed in ACC is around @3

2ersons t"rou"out t"e country ACC manufactures ordinary

Port0and cement3 com2osite cement and s2ecia0 cement

Com2any "as #eun oKerin its mar!etin e12ertise to ain t"e

mar!et s"are ACC is 0arest 2roducer of cement and a0so t"e

0arest user of 0imestone3 coa0 industry and rai0/ays %"e

com2any is committed to/ards en4ironment and insta00in

en4ironment friend0y eui2ment in cement 20ants to reduce t"e

2o00ution

0.'.'. 6rasim Ind#stries -td

Grasim Industries Limited is a Mas"i2 com2any of t"e Aditya

Bir0a Grou23 ran!s amon Indias 0arest 2ri4ate sector

com2anies Grasim started as a te1ti0es manufacturer in +@?3

no/ it "as Grasims #usinesses com2rise 4iscose sta20e #re

*SF3 cement3 c"emica0s and te1ti0es Its core #usinesses are

*SF and cement3 /"ic" contri#ute to o4er @ 2er cent of its

re4enues and o2eratin 2rots Grasim is a 0o#a0 0eader and a

ma5or 20ayer in 4iscose sta#0e #re Aditya Bir0a Grou2 is t"e

/or0d8s 0arest 2roducer of *SF /"ic" "as 9+J 0o#a0 mar!et

s"are Grasim "as a 0o#a0 mar!et s"are of +J and a0so 9 nd

0arest 2roducer of caustic soda in India

Grasim is a su#sidiary U0tra%ec" Cement Limited3 /"ic" is a

0eadin 20ayer in India In u0y 93 Grasim acuired a ma5ority

sta!e in U0tratec" t"is acuisition cata2u0ted t"e Aditya Bir0a

Grou2 to t"e to2 of t"e 0eaue in India %"e ama0amation of

Samrudd"i Cement Limited SCL /it" U0tra%ec" on + u0y 9+

restructured t"e cement industry

99 , P a e



0.'.0. Amb#/a Cements -td.

Am#u5a Cements Ltd ACL is one of t"e to2 cement

manufacturin com2anies in India It /as former0y !no/n as

Gu5arat am#u5a cement %"e Com2any commenced cement

2roduction in +@?; %"e 0o#a0 cement ma5or Ho0mic "as ta!en

o4er manaement contro0 of ACL in 9; Ho0cim "o0ds 0itt0e

o4er ;J euity in ACL Com2any is ro/in at faster rate t"e

current insta00ed ca2acity is a#out 9 mi00ion tonnes %"e

Com2any "as interated cement manufacturin 20ants and ?

cement rindin units in t"e country

0.'.7. Cent#r$ Te8tiles ) Ind#stries -td

Century %e1ti0es = Industries 0td /as incor2orated in +?@> #ut

ti00 +@+3 it o2erated on0y one Cotton %e1ti0e $i00 in $um#ai

@>J of t"e 2rot comes from cement3 te1ti0e and 2a2er = 2u02

sements Amon t"ese cement contri#utes >J of t"e tota0

2rot In +@>3 t"e Com2any di4ersied into 2roduction of

Cement #y esta#0is"in its rst cement 20ant at Bai!unt" to

2roduce ; mi00ion %onnes of Port0and Cement %"e 2resent

ca2acity is 9+ mi00ion %PA %"e tota0 2resent cement

manufacturin ca2acity is >? mi00ion %PA 20ants

0.'.9 India Cements -td

%"e India Cements Ltd /as t"e 0arest 2roducer of cement in

sout" India /"ic" /as esta#0is"ed in +@; and t"e rst 20ant

/as setu2 at San!arnaar in %ami0nadu in +@@ No/ t"ere are

se4en 20ants < in %ami0nadu and in And"ra Prades" It is a

mar!et 0eader /it" a mar!et s"are of 9?J in t"e Sout" /"ic"

9< , P a e



aims to ac"ie4e a <J mar!et s"are in t"e near future %"e

Com2any "as access to "ue 0imestone resources and 20ans to

e12and its ca2acity %"e Com2any "as a stron distri#ution

net/or! Its /e00 esta#0is"ed #rands are San!ar Su2er Po/er3

Coromande0 Su2er Po/er and 'aasi Su2er Po/er Its 2roducts

are ready mi1 concrete3 Coromande0 &in-San!ar Sa!t"i- 'aasi

Go0d3 Coromande0-San!ar-'aasi3 B0ended Cement and Su02"ate

'esistin Port0and Cement S'C

0.'.:. Shree Cement -td

S"ree Cement is t"e 0arest cement manufacturer in Nort"

India and amon t"e to2 4e cement manufacturin rou2s in

t"e country It "as increased its ca2acity times in t"e 0ast

years to reac" 2resent cement ca2acity ie +9 mi00ion tons

2a /it" manufacturin 20ants at Bea/ar3 'as3 &"us"!"era

and Suratar" in 'a5ast"an and La!sar 'oor!ee in

Uttara!"and %"e Com2any fo00o/s a mu0ti-#rand stratey Its

"i"0y reconied #rands of S"ree U0tra3 Banur and 'oc!stron

/"ic" toet"er en5oy 0arest mar!et s"are in "i"

4a0ue mar!ets of 'a5ast"an3 )e0"i = Haryana S"ree is a0so into

t"e 2o/er sector and is an enery ecient and en4ironment

friend0y com2any and recei4ed many a/ards it is an acti4e

2artici2ant at C0imate c"ane forums and is t"e rst Indian

cement com2any to 5oin t"e Cement Sustaina#i0ity Initiati4e of

t"e 7or0d Business Counci0 for Sustaina#0e )e4e0o2ment

0.'.;. Madras Cements -td

$adras Cements Ltd contri#utes most of t"e 2rots to 'amco

Grou23 and is /e00 reconied of Sout" India /"ic" is 0ocated at

9 , P a e



C"ennai %"e rst 20ant of $CL at 'a5a Naar3 near

*irud"unaar in %ami0 Nadu commenced its 2roduction in +@;9

/it" a ca2acity of 9 tonnes3 %"e ma5or 2roduct of t"e

com2any is Port0and cement %"e cement ca2acity is +@

mi00ion tons 2er annum %"e com2any is t"e ft" 0arest

cement 2roducer in t"e country 'amco Su2errade is t"e most

2o2u0ar cement #rand in Sout" India It a0so 2roduces 'eady

$i1 Concrete and )ry $ortar 2roducts It i4es #est return to its

in4estors

0.'.3. <irla Cor+oration -td

Bir0a Cor2oration Limited is t"e Mas"i2 Com2any of t"e $P

Bir0a Grou2 It is incor2orated as Bir0a ute $anufacturin

Com2any Limited in +@+@ It /as transferred from a

manufacturer of 5ute oods to a 0eadin mu0ti-2roduct

cor2oration /it" /ides2read acti4ities After it crossed t"e 's

+< crore turno4er mar! and t"e name /as c"aned to Bir0a

Cor2oration Limited in +@@?%"e Com2any s"o/ed an

im2ressi4e ro/t" record in 9?-@ and 9@-+ Present

c"airman is $r H * Lod"a It "as 2roducts ranin from cement

to 5ute oods3 P*C Moor co4erin3 as /e00 as auto trims

0.'.5. *almia Cement =<harat> -td

)a0mia Cement B"arat Ltd /as founded in +@< #y aidaya0

)a0mia )CBL e12erienced a > decades of ro/t" %"e cement

di4ision of )CBL /as esta#0is"ed in +@<@ It is "eaduartered in

Ne/ )e0"i /it" cement3 suar3 tra4e0 aency3 manetite3

refractory and e0ectronic o2erations s2read across t"e country

9 , P a e



%"e )a0mia Grou2 "ad esta#0is"ed four cement 20ants It "ad

made strateic in4estment in Orissa Cements Limited

OCL )CBL "as #een and continues to #e an industry 0eader in

t"e nic"e mar!et sement

0.'."2 &at#re of com+etition in cement ind#str$

Com2etition is a 2rocess of ri4a0ry #et/een diKerent mar!et

20ayers to attract customers In t"eir 2ursuit to #e t"e #est3

mar!et 20ayers may ado2t unfair means 0i!e carte0iation %"ere

are oods /"ic" are trada#0e on0y in 0imited mar!ets3 Cement

#ein a ood e1am20e of t"is )ue to its #u0!y nature3 it is not

2ossi#0e to trans2ort it to distant 20aces t"erefore3 eora2"ica0

sements of a nationa0 mar!et can #e easi0y carte0ied

7or0d o4er it "as ado2ted i00ea0 /ays3 India is no e1ce2tion

Carte0iation in India is an o2en secret %"e /ea! 2ro4isions in

t"e $'%P Act3 a0on /it" /ea! in4estiation ca2acity are t"e

ma5or reasons for carte0 formation continuin for years

Cement doesn8t "a4e any su#stitutes t"is ma!es its demand

ine0astic A0so since trans2ortation cost eats u2 a ma5or c"un!

of t"e tota0 cost3 com2anies ser4e t"e reiona0 mar!ets and do

not o2erate out of t"eir reion %"is ty2ica0 nature of cement

industry "as a00eed0y dri4en t"e rm to form carte0s Since t"e

ma5ority of t"e mar!et s"are is in t"e "ands of 0are com2anies3

t"ey can come toet"er and co00ude3 0eadin to a dec0ine in

9; , P a e



com2etition %"e industry "as /itnessed more t"an a doen

ta!e o4er8s in domestic reion in t"e 0ast fe/ years

%"e Bui0ders Association of India BAI "as a00eed t"at India8scement industry3 t"e /or0d8s second 0arest3 is o2eratin as a

carte0

%"e recent a00eation "as come on t"e #ac! of a continuous rise

in cement 2rices from Fe#ruary #y u2 to 's +-9 for a !

#a %"e association said to2 20ayers 0i!e ACC3 Am#u5a

Cements3 Grasim3 U0tra%ec" and ay2ee Cement3 /"ic" contro0

a0most "a0f t"e domestic cement mar!et3 are in a dominant

2osition to determine and monitor 2rices3 t"e re0ease issued #y

BAI said

Table ' ( Price Trend for Cement

'eion State 'ate 's

2er !

#a9-

'ate 's 2er

! #a9-

Nort" )e0"i +-+ +@-99 Pun5a# +;-+; Haryana +;-+;7est 'a5ast"an +-+ 9-9<

$a"aras"tra$um#ai

+>-+>

$a"aras"tra Pune

+-+

East 7est Bena0 +;-+> 9-9< Orissa +-+ Bi"ar +-+Sout" %ami0 Nadu +-+ 9+-9;

And"ra Prades" +9-+ &era0a +-+;

9> , P a e



&arnata!a +-+;Centra

0

Uttar Prades" +-+

$ad"ya Prades" +-+ or

+<-+

Source-Pro5ectmonitorcom3 nancia0

e12ress

1actors4

• Price 4ariation3

• )emand3 Production3

• E12ense to sa0es ratio3

• Ca2acity uti0isation3

• Ca2acity en"ancement

As t"e a#o4e 2rice ta#0e s"o/s t"at 2rice is drastica00y

c"anin from +< to 9 around +J increase in -; years3

i4e t"e sin of carte0isation in cement industry as 0are

com2anies are ainin economics of sca0e in 2roduction3 /"ic"

is reducin t"e cost But t"e 2rices are increasin Factors t"at

2oint to/ards carte0iation are t"e structure of Indian cement

industry /it" fe/ 0are rms dominatin t"e industry and t"e

fa00in coste12ense to sa0es ratio in t"e 0ast years des2ite

risin 2rices %"e 0are 20ayers are not restrictin ne/ 20ayers

to enter in t"e mar!et

A00 t"ese t"ins conc0ude t"at carte0 e1ists in Indian cement

industry and com2anies are ettin 2rot out of it /it"out

disc0osin anyt"in

9? , P a e



<< $ar!et sementation

$ar!et sementation can #e di4ided in t/o 2arts- +

Geora2"ica0 sementation3 9 Customer sementation

0.0.". 6eogra+hical Segmentation

1ig#re ' ( 6eogra+hical Segmentation

9@ , P a e



%"e cement industry in India can #e di4ided into t"e 4e

eora2"ica0 ones of India QNort"3 Sout"3 East3 7est and

centra0 Q#ased on 0oca0ised 4ariations in t"e consumer 2ro0e

and su220y-demand scenario

1ig#re 0 ( egional share of installed ca+acit$ ='225>

9<J

+;J

+J+J

<<J Nort"

7est

Centra0

East

Sout"

%"e Sout" one is t"e 0arest mar!et3 /it" t"e "i"est insta00ed

ca2acity of ;> mi00ion tonnes3 fo00o/ed #y t"e Nort" one /it"

a#out ? mi00ion tonnes3 in 9@

Source D C$IE Ernst = (oun ana0ysis

Table 0 ( Cement cons#m+tion =in million tonnes>

< , P a e

CE$EN%

IN)US%'(

SOU%HNO'%HCEN%'AL7ES%EAS%



egion '225 '223 '22; '22: '229 '227East 9?9+ 9< 9<@@ 99;; 9<< +>>?est <<@> <99< 9?9> 9@+ 9; 999Centra

l

9;9 9<>; 99 9> 9+ +?@>

&orth <+9 <<9 9@?? 9>; 99; 99?;So#th <+@; <+9 <@<> @+; 9; Sources:

C$IE Ernst = (oun ana0ysis

Table 7 ( Cement +rod#ction =in million tonnes>egion '225 '223 '22; '22: '229 '227East 9@@ 9<? 99> 9 +?>< +;;>?est 9?; 9?> 9>< 9@< 99>; 9+Centra

l

9;+ 9 9 99< 9 +?

&orth ++? <;; <9+ 9@;> 9;> 999So#th @> 9< @?+ ?? <;@> <;;

Sources: C$IE Ernst = (ounana0ysis

A#o4e ta#0e descri#es a#out t"e 2roduction and consum2tion

&ey mar!ets in nort"ern India inc0ude t"e states of 'a5ast"an3

Pun5a#3 Haryana and t"e Nationa0 Ca2ita0 'eion NC'

)emand in t"is reion is #ein dri4en #y infrastructure3

residentia0 and commercia0 2ro5ects %"e state of $a"aras"tra

and Gu5arat are t"e !ey mar!ets in East reion %"e demand for

cement "as ro/n in t"is reion 2rimari0y due to an increase in

t"e num#er of "ousin and infrastructure 2ro5ects In centra0

reion3 Uttar Prades" is t"e !ey mar!et O4er t"e 2ast fe/

years3 ro/t" in "ousin and commercia0 rea0 estate "as

aumented t"e demand for cement in t"is reion %"e !ey

<+ , P a e



mar!ets in t"e East are t"e states of 7est Bena03 Orissa and

Bi"ar Gro/t" in "ousin and industria0 acti4ity is 2rimari0y

dri4in demand for cement in t"is reion In t"e sout"ern

reion &ey mar!ets are t"e states of %ami0 Nadu3 And"ra

Prades" and &arnata!a %"e Sout" one "as 4ast reser4es of

0imestone Gro/t" in t"e rea0 estate mar!et in t"e reion3

cou20ed /it" t"e de4e0o2ment of !ey infrastructure 2ro5ects

suc" as air2ort and metro rai03 "as resu0ted in increased

demand for cement in t"is reion

0.0.'. CUSTME SE6ME&TATI&

Customer sementation can #e di4ided in t"ree 2arts D

Fiure : Customer Sements

0.0.'.". %o#sing

A ma5or 2ortion of domestic demand of cement accounts for

"ousin sement As t"e 2er ca2ita income and standard of

0i4in is increasin3 t"e demand for "ousin sector is a0so

<9 , P a e

%USI&6 I&1ASTUCTUE

EA-

ESTATE



increasin In e0e4ent" 4e year 20an 9>-+93 t"e demand

for "ousin sector is estimated to im2ro4e from 9 mi00ion units

to o4er 9; mi00ion unit ti00 t"e end of 20an Ur#anisation is ta!in

20ace in India3 /"ic" is dri4in t"e demand for more

"ouse"o0ds

0.0.'.'. Infrastr#ct#re

%"e o4t "as formu0ated t"e 2o0icy of s2ecia0 economic one in

India to de4e0o2 industria0 ro/t" in 2articu0ar area3 /"ic" /i00

need ood infrastructure to #oost "t Indian economy %"e Go4t

of India is estimated to s2end around USR < #i00ion on

infrastructure 2ro5ects und e0e4ent" 20an Go4t is

concentratin more for infrastructure3 so it is demandin more

cement %"e demand for cement is ra2id0y increasin from 2ast

fe/ years Infrastructure 2ro5ects suc" as t"e )edicated Frei"t

Corridors )FCs and u2raded and Greene0d air2orts and

2orts are e12ected to dri4e construction acti4ity in India

0.0.'.0. eal estate

As3 t"e Indian economy is ro/in /it" ra2id rate3 t"e

commercia0 rea0 estate sector is a0so #oomin /it" t"e "e02 of

2ro5ects 0i!e retai03 oce3 sc"oo0s3 "os2ita0s and mu0ti20e1es

Ser4ice sectors suc" as te0ecom and nancia0 ser4ices3 as /e00

as t"e I% sector /"ic" accounts for t"e ma1imum commercia0

oce s2ace in t"e country are ro/in $anufacturin sectors

2"armaceutica0s3 #iotec"no0oy3 and automoti4es and fast

mo4in consumer oods F$CG3 are 0i!e0y to dri4e t"e demand

for oce s2ace

<< , P a e



0.7. PESTE- Anal$sis on Indian Cement

Ind#str$

PES%EL na0ysis is t"e study of uncontro00a#0e e1terna0

en4ironment3 /"ic" aKects com2anies in any industry PES%EL

stands for 2o0itica03 economic3 socia03 tec"no0oica03

en4ironmenta0 = 0ea0 PES%EL ana0ysis "e02s com2any to form

t"e 2o0icies to ro/ in t"e industry

0.7.". Political

0.7.".". SE@ Act to im+ro,e Infrastr#ct#ral

*e,elo+ment

SE is s2ecia0 economic one %"e o4t "as formu0ated t"e

2o0icy of s2ecia0 economic one in India to de4e0o2 industria0

ro/t" in 2articu0ar area SEs are 2ro2osed as duty free area

for t"e 2oint of trade3 o2erations3 duty and tariKs SE units are

inde2endent and incor2orated "a4in t"eir o/n infrastructure

and su22ort ser4ices Infrastructure de4e0o2ment so0e0y

de2ends on t"e cement industry3 so 2o0itica0 en4ironment of

India is in fa4our of cement industry

0.7.".'. 6o,ernment +artici+ation

Cement 2rice is #asica00y de2ends on t"e 2rice of ra/ materia0suc" as 2o/er tariK3 frei"t3 cess on 0imestone and rai0/ay

< , P a e



tariK %"e Go4ernment is contro00in a00 t"ese 2rices3 on t"e

ot"er "and o4t is consumin a "ue amount of cement in t"e

country $any state o4t is ma!in attracti4e 2o0icies suc" as

sca0 incenti4e in t"e form of sa0es ta1 e1em2tion to attract

t"e in4estment /it"in t"e state Haryana is 2ro4idin freee on

2o/er tariK for years3 on t"e ot"er side Gu5arat 2ro4ides

re0ease from e0ectric duty

0.7.".0. Political stabilit$

Countries /it" 2o0itica0 sta#i0ity attain a "i"er ro/t"3

com2are to 2o0itica0 insta#0e country %"e 2o0itica0 sta#i0ity in

India is ood %"e 2o0itica0 insta#i0ity came in t"e 2icture 0ast 9

years ao3 so 2o0itica0 sta#i0ity 2ro4ides a ood 20atform to

Indian cement com2anies to de4e0o2 t"e 2o0icies to come u2

/it" Myin co0ours

0.7.'. Economic

%"e Indian economy is t"e fourt" 0arest economy of t"e /or0d

on t"e #asis of Purc"asin Po/er Parity PPPT+ %"e factors 0i!e

Hue man2o/er #ase3 stron macro-economic fundamenta0s

and di4ersied resource #ase are t"e reasons t"at many ot"er

countries is attracted to/ards t"e in4estment o22ortunities and

#usiness

0.7.'.". 6rowth in Constr#ction Acti,it$

im+ro,ing 6*P 6rowth

+ Purchasing power parity (PPP) is a theory of long-term equilibrium exchange rates based on relative price

levels of two countries.

< , P a e

http://en.wikipedia.org/wiki/Exchange_rate





Current0y3 Indian cement industry is ro/in at "i"er rate /it"

t"e "e02 of many infrastructure and "ousin 2ro5ects Indian

cement industry is contri#utin to India8s G)P to ro/ /it" a

faster rate

0.7.'.'. Increase in Per Ca+ita Income

In India 2er ca2ita income is increasin /it" a ood 2ace3 /"ic"

/i00 resu0t in increase in "ousin de4e0o2ment3 as t"e

dis2osa#0e income /i00 #e "i" and standard of 0i4in /i00 #e

"i"

0.7.'.0. ate hikes #nlikel$ to slow down growth

Cement 2rices are increasin from 2ast year at ra2id 2ace In

93 cement 2rices /ere rs+<-+ Cement 2rice in current

scenario is around 's9<-93 so rate "i!e /i00 un0i!e0y to s0o/

do/n t"e ro/t"

0.7.'.7. 1*I -iberaliation to enhance ind#str$ growth

In +@?@3 dereu0ation too! 20ace in Indian industry3 /"ic"

"e02ed t"e industry to ro/ In India3 t"ere is +J forein

direct in4estment is a00o/ed in cement industry %"e rst

forein com2any to enter in Indian mar!et /as Lafare cement

As forein in4estment is 2ermitted3 it /i00 #oost t"e cement

industry in India

0.7.0. Social

<; , P a e



0.7.0.". Shifting cons#m+tion +attern to f#el

ind#str$ growth

%"ere is a drastic c"ane in t"e consum2tion 2attern of

cement

In 2ast3 consumer 2urc"ases t"e cement as commodity3 no/ it

is c"aned from commodity to #rands )ue to mar!etin

initiati4e of com2anies3 #rand came into t"e 2icture No/

Indian consumer oes on0y for #randed cement 0i!e3 ay2ee

cement3 U0tratec" etc

0.7.0.'. Creation of direct and indirect /obs each

$ear

7it" a 2o2u0ation of more t"an + #i00ion 2eo20e3 t"e main

2ro#0em is to 2ro4ide 5o# to eac" and e4ery one %"e Indian

cement industry is 2ro4idin 5o# o22ortunities to many 2eo20e

0.7.0.0. -ifest$le and standard of li,ing

Standard of 0i4in in India is increasin3 as t"e 2er ca2ita

income is increasin %"e increase in 0ifesty0e and standard of

0i4in /i00 aKect t"e demand of "ousin sector in India %"is /i00

0ead to ro/ t"e cement industry

0.7.7. Technolog$

%"e tec"no0oy u2 radation "as "e02ed t"e cement industry to

increase t"e ca2acity of 20ant3 dec0ine in t"erma0 enery

consum2tion3 dec0ine in e0ectrica0 enery consum2tion3 dec0ine

<> , P a e



in cost of 2roduction of cement3 dec0ine in enery cost t"rou"

co-2rocessin and reduction in t"e CO9 emission t"rou"

#0ended cement and enery conser4ation

Current0y3 a00 t"e cement 20ants are usin dry 2rocess /it" most

eKectua0 2o00ution contro0 measure to accom20is" t"e terms

2ro4ided #y t"e Po00ution Contro0 Aut"orities

&ew technolog$ ado+ted b$ ind#str$

• Ad4anced contro0 systems /it" soft sensors

• A00 fans inc0udin H% /it" 4aria#0e s2eed dri4es3

2refera#0y *F)8sT• Interated com2uterised ua0ity contro0 systems

• $ines 20annin

• Bu0! ana0yser

• 'a/ mi1 desin and #0endin

0.7.9. En,ironmental

0.7.9.". Easing en,ironment norms

Entre2reneurs in India are reuired to acuire en4ironmenta0

c0earance from t"e $inistry of En4ironment 'ecent0y

introduced En4ironmenta0 $anaement Systems E$S

certication is a mec"anism #y /"ic" cement com2anies can

acuire t"e 0a#e0 of en4ironmenta00y sound enter2rises and a0so

deri4e t"e #enets of im2ro4ed 2erformance %"e E$S does

not 0ay do/n s2ecic en4ironmenta0 2erformance criteria #ut

reuires an oranisation to formu0ate 2o0icies and o#5ecti4es3

<? , P a e



ta!in into account information a#out sinicant en4ironmenta0

eKects for continua0 im2ro4ement

ISO + en4ironmenta0 manaement standards "a4e #een

esta#0is"ed to "e02 com2anies :

• $inimie t"ose o2erations /"ic" ad4erse0y aKect

t"e en4ironment air3 /ater or 0and• Com20y /it" a220ica#0e 0a/s and reu0ations

• Continua00y im2ro4e in t"e a#o4e

%"e ma5or o#5ecti4e of t"e ISO + series of norms is to

2romote more eKecti4e and ecient en4ironmenta0manaement in oraniations and to 2ro4ide usefu0 and usa#0e

too0s - ones t"at are cost eKecti4e3 system-#ased3 Me1i#0e and

reMect t"e #est oraniations and t"e #est oraniationa0

2ractices a4ai0a#0e for at"erin3 inter2retin and

communicatin en4ironmenta00y re0e4ant information

Acts /"ic" concern cement industry from t"e en4ironmenta0

4ie/2oint are:

• Air Pre4ention = Contro0 of Po00ution Act3 +@?;

• %"e En4ironmenta0 Protection Act +@?;

• Forest Conser4ation Act3 +@?

• 7ater Pre4ention = Contro0 of Po00ution Cess Act3 +@>

• 7ater Pre4ention = Contro0 of Po00ution Cess Act3 +@>>

• %"e Pu#0ic Lia#i0ity Insurance Act3 +@@+

0.7.:. -egal

In India3 t"e )e2artment of Industria0 Po0icy and Promotion

)IPP3 under t"e $inistry of Commerce and Industry3 is t"e

noda0 aency for t"e de4e0o2ment of cement industries3 t"at is3

<@ , P a e

http://business.gov.in/outerwin.php?id=http://dipp.nic.in/


http://business.gov.in/outerwin.php?id=http://commerce.nic.in/



http://business.gov.in/outerwin.php?id=http://commerce.nic.in/



it is in4o04ed in monitorin t"eir 2erformance at reu0ar

inter4a0s and suestin suita#0e 2o0icy incenti4es3 as 2er t"e

reuirement %"e )e2artment is res2onsi#0e for formu0ation and

im20ementation of 2romotiona0 and de4e0o2menta0 measures

for ro/t" of entire industria0 sector in enera0 and of some

se0ected industries 0i!e cement3 0i"t enineerin3 0eat"er3

ru##er3 0i"t mac"ine too0s3 etc in 2articu0ar It is in4o04ed in

framin and administerin o4era00 industria0 2o0icy and forein

direct in4estment F)I 2o0icy as /e00 as 2romotin F)I inMo/

into t"e country It 20ays an acti4e ro0e in in4estment 2romotion

t"rou" dissemination of information on in4estment c0imate

and o22ortunities in India as /e00 as #y ad4isin 2ros2ecti4e

in4estors a#out 4arious 2o0icies and 2rocedures

Some of t"e ru0es and orders3 administered #y )IPP3 re0atin to

t"e cement industry are:-

• Cement Contro0 Order3 +@;>

• Cement Cess 'u0e3 +@@<

• Cement Vua0ity Contro0 Order3+@@

• Cement Vua0ity Contro0 Order3 9<

0.9. <#siness *i,ersiBcation(

Conglomerate or Standalone

%"e fo00o/in rou2 of industries are con0omerate D

0.9.". 6rasim ind#stries

, P a e

http://business.gov.in/outerwin.php?id=http://siadipp.nic.in/publicat/cement/cemact01.htm



http://business.gov.in/outerwin.php?id=http://siadipp.nic.in/publicat/cement/cement04.htm




http://business.gov.in/outerwin.php?id=http://siadipp.nic.in/publicat/cement/cement04.htm



Grasims #usiness started as a te1ti0e manufacturer in +@?3

today it encom2asses 4iscose sta20e #er *SF3 cement3

c"emica0s and te1ti0es *SF and cement3 contri#utin to o4er @

2er cent of its re4enues and o2eratin 2rots %"rou" its

su#sidiary U0tra%ec" Cement Limited3 it "as a ca2acity of 9

mi00ion ton Per annum and is a 0eadin 20ayer in India U0tra%ec"

Cement Limited manufactures and mar!ets-Ordinary Port0and

cement3 Port0and B0ast Furnace S0a Cement and Port0and

Poa0ana Cement3 ready mi1 concrete '$C

0.9.'. Cent#r$ Te8tiles and Ind#stries -td

Century %e1ti0es and Industries Ltd /as incor2orated in +?@>

and "as made ra2id 2roress in e12andin and di4ersifyin its

acti4ities %"e detai0s of acti4ities 2resent0y #ein carried on #y

t"e Com2any are as fo00o/s:-

1ig#re 9 ( e,en#e mi8 of Cent#r$ Te8tiles and

Ind#stries -td. '223425.

I Business Sement D %e1ti0esCotton %e1ti0es3 (arn and )enim

+ , P a e



Century 'ayon - *F(3 CS( = 'ayon %yre (arn

II Business Sement - Cement

In +@>3 t"e Com2any di4ersied into 2roduction of Cement #y

settin u2 its rst cement 20ant at Bai!unt"3 near 'ai2ur

C""attisar" to 2roduce Port0and cement %"e current

ca2acity is 9+ mi00ion %PA

III Business Sement D Century Pu02 and Pa2er

0.9.0. a$+ee 6ro#+

%"e ay2ee rou2 is a di4ersied infrastructure con0omerateand "as a terric 2resence in Enineerin = construction a0on

/it" interests in 2o/er3 cement and "os2ita0ity3 rea0 estate =

e12ress/ay %"e enineerin = construction of ay2ee rou2 in

t"e construction of mu0ti-2ur2ose 'i4er *a00ey and Hydro2o/er

2ro5ects Enineerin and Construction of t"e Grou2 is an

ac!no/0eded 0eader %"e rou2 "as t"e 0arest s"are in IndianHydro2o/er ay2ee rou2 "as 4e star "ote0s %"e Grou2 is a

2ioneer in t"e de4e0o2ment of India8s rst o0f centric 'ea0

Estate ay2ee Greens - a /or0d c0ass fu00y interated com20e1

consists of an +? "o0e Gre Norman Go0f Course Stretc"in

o4er 9 acres3 it a0so inc0udes residences3 commercia0 s2aces3

cor2orate 2ar!3 entertainment and nature in a#undance

0.9.7. *almia Cement =<harat> -imited =*C<->

)a0mia "a4e cement 20ants in sout"ern states of %ami0 Nadu

and And"ra Prades" and eastern reions of t"e country3 /it" a

ca2acity of @ mi00ion tonnes 2er annum Since +@<@3 )CBL is a

ma5or cement 20ayer /it" a dou#0e diit mar!et s"are and a

9 , P a e



0eader in su2er s2ecia0ty cements used for Oi0 /e00s3 'ai0/ay

s0ee2ers and Air stri2s

)a0mia started manufacturin suar in t"e mid-Nineties'amar" C"ini $i00s )istt Sita2ur UP %"e sa0e of suar forms

a ma5or 2art of )a0mia8s re4enues and uses state-of-t"e-art

tec"no0oy /"ic" ensures "i" 2roducti4ity

%"e fo00o/in com2anies are standa0one-

0.9.9. ACC -imited

ACC ACC Limited is Indias 2rimary manufacturer of cement

and concrete Its o2erations are s2read t"rou"out t"e country

/it" +; modern cement factories3 more t"an ready mi1

concrete 20ants3 9 sa0es oces3 and se4era0 ona0 oces3 a

/or!force of around @3 2ersons and t"e distri#ution net/or!

com2risin o4er a @ dea0ers

Since t"e start in +@<;3 t"e com2any "as #een a trendsetter

and "as set #enc"mar! in many areas of cement and concrete

tec"no0oy It "as an e1ce00ent trac! record of inno4ati4e

researc"3 2roduct de4e0o2ment and s2ecia0ied consu0tancy

ser4ices %"e com2anys diKerent manufacturin units are

#ac!ed #y a centra0 tec"no0oy su22ort ser4ices centre - t"e

on0y one of its !ind in t"e Indian cement industry

ACC "as e1tensi4e e12erience in minin3 #ein t"e 0arest user

of 0imestone It is one of t"e #iest customers of t"e domestic

coa0 industry3 of Indian 'ai0/ays3 and of t"e country8s road

trans2ort net/or! ser4ices for in/ard and out/ard mo4ementof materia0s and 2roducts %"e com2any 2romotes t"e use of

< , P a e



ot"er a0ternati4e fue0s and ra/ materia0s and oKer so0utions for

/aste manaement 0i!e testin3 suestions for reuse3

recyc0in and co-2rocessin3 t"ere#y is en4ironment

consciousness

0.9.:. Amb#/a Cements -td

Am#u5a Cements Ltd ACL is one of t"e ma5or cement

manufacturin com2anies in India %"e Com2any started

cement 2roduction in +@?;3 and /as acuired #y t"e 0o#a0

cement ma5or Ho0cim in 9;%oday3 Ho0cim "o0ds a 0itt0e o4er

;J euity in ACL

ACL "as ro/n sinicant0y o4er t"e 2ast decade3 and current

cement ca2acity is a#out 9 mi00ion tonnes It is t"e rst

cement manufacturers in India to #ui0d a ca2ti4e 2ort /it" t"ree

termina0s a0on t"e country8s /estern coast0ine to faci0itate

time0y3 cost eKecti4e and en4ironmenta00y c0eaner s"i2ments of

#u0! cement to its customers and "as its o/n Meet of s"i2s It

a0so initiated t"e de4e0o2ment of t"e mu0ti20e #io-mass co-red

tec"no0oy for eneratin reener 2o/er in its ca2ti4e 20ants

0.9.;. India Cements -td

%"e India Cements Ltd /as esta#0is"ed in +@; and /as setu2

at San!arnaar in %ami0nadu in +@@ and is t"e 0arest

2roducer of cement in Sout" India %"e Com2any "as access to

"ue 0imestone reser4es and 20ans to e12and 4o0umes #y de-

, P a e



#ott0enec!in and o2timisation of e1istin 20ants as /e00 as #y

acuisition

0.9.3. .D. Cement

& Cement is an a0iate of t"e & Oraniation3 founded #y

La0a &am0a2at Sin"ania %"e & Oraniation is an association

of industria0 and commercia0 com2anies /"ic" "a4e o2erations

in a num#er of industries

& Cement commenced commercia0 2roduction in $ay +@> at

Nim#a"era in t"e state of 'a5ast"an It is one of t"e 0arest

cement manufacturers in Nort"ern India3 t"e second 0arest

/"ite cement manufacturer in India #y 2roduction ca2acity

7"i0e t"e rey cement is ma5or0y so0d in t"e nort"ern India

mar!et3 t"e /"ite cement is e12orted to countries 0i!e Sout"

Africa3 Nieria3 Sina2ore3 Ba"rain3 Ban0ades"3 Sri Lan!a3

&enya3 %anania3 UAE and Ne2a0

0.9.5. -afarge

Lafare India is a su#sidiary of t"e Frenc" Bui0din $ateria0s

ma5or Lafare and entered t"e Indian mar!et in +@@@3 /it" t"e

acuisition of t"e cement #usiness of %ata Stee0 %"is /as

fo00o/ed #y t"e 2urc"ase of t"e 'aymond Cement faci0ity in

9+

Lafare is t"e /or0d 0eader in #ui0din materia0s com2risin

cement3 areates = concrete and y2sumIt "as cement

20ants in India: t/o interated 20ants in t"e state of

C""attisar" 3 one rindin station eac" in "ar!"and = 7est

, P a e



Bena0 %ota0 cement 2roduction ca2acity current0y stands at

a#out ; mi00ion tons

Lafare India 2roduces diKerent ty2es cements- Port0and S0a

Cement3 Port0and Poo0ana Cement Its #rands Lafare Cement

and Lafare Concreto Cement "a4e a ood re2utation in India

and are amonst t"e "i"est 2riced #rands

0.:. Consolidation 4 Mergers )

Ac#isitions %"e 0o#a0iation of Indian cement industry "as encouraed

many forein cement manufacturers to in4est in t"e ra2id0y

ro/in Indian cement mar!et %"is "as #een 2ossi#0e t"rou"

4arious merers and acuisitions dea0s Some of t"e ma5or $=A

dea0s #et/een domestic and forein cement manufacturers in

recent years are as fo00o/s:

0.:.". %olcim b#$s AP4based Encore Cements

Ho0cim3 t"e S/iss cement iant3 acuired a + 2er cent sta!e

in Encore Cements = Additi4es Pri4ate Ltd3 an And"ra-#ased

coasta0 cement 20ant /it" a 93 tonnes ca2acity s0a

rindin unit in *is"a!a2atnam3 t"rou" its Indian arm3 ACC in

anuary 9+%"is acuisition 0ed to settin u2 of ACC8s rst

20ant in And"ra Prades" /"ic" "e02ed t"e com2any in

strent"enin its 2resence in coasta0 And"ra Prades" %"ou"

dea08s sie /as not ocia00y disc0osed3 #ut accordin to industry

ana0ysts3 t"e dea0 sie /as in t"e rane of 's crore and

's crore

; , P a e



0.:.'. %olcim Cement 4 6#/arat Amb#/a Cements

=6AC->

Ho0cim Cement entered into a crucia0 2artners"i2 /it" GACL3 in

9;3 to acuire +?J in GACL to enter into in t"e Indian

Cement Industry8s dynamic ro/t" Bot" t"e 2artners /anted

to e12and t"eir o2erations in Sout" Asia3 $idd0e East and t"e

ad5oinin reions in Indian Ocean %"ey /anted to enric" eac"

ot"er #y e1c"anin e12eriences in 2roduct de4e0o2ment3

Human 'esources and Information %ec"no0oy In addition3

Ho0cim desired to use India as a #ase for its I% = '=)3 to create

a #etter 2osition in t"e cement industry

0.:.0 -afarge India

Lafare India is a su#sidiary of t"e Lafare Cement Com2any of

France and /as esta#0is"ed in India /it" t"e acuisition of t"e

%isco and t"e 'aymond cement 20ants %isco /as acuired for a

4a0ue of 's crores in No4em#er +@@@%isco8s 2remium

ua0ity Port0and s0a cement in t"e Eastern Indian states of

7est Bena0 and Bi"ar3 "i" rade ordinary Port0and cement in

$ad"ya Prades" strent"ened t"e 2osition of Lafare in

Eastern India %"e contract a0so reuired to 2ro4ide %isco8s "i"

ua0ity s0a

%"is acuisition /as fo00o/ed #y anot"er acuisition of t"e

'aymond Cement faci0ity in 9+ for 's>? crores in an a00

cas" dea0 %"is dea0 /as aimed at en"ancin Lafare8s 2osition

in Eastern India Hue de2osits of 0imestone /it" 'aymond

> , P a e



"e02ed in increasin t"e 2roduction ca2acity in comin years

%"is unit /as + !ms a/ay from t"e %isco 20ant3 a strateic

mo4e #y Lafare Part of t"e 2roceeds /as used #y 'aymond in

2ayin oK de#ts and in4estment in areas te1ti0es3 distri#ution

and retai0in %"ese acuisitions sina0ed t"at Lafare /as a00

ready to e12and its /ins in #ecomin a 0eadin cement

manufacturer in t"e /or0d

0.:.7. %eidelberg Cement 4 Indorama Cement -td

Heide0#er Cement is a 0eadin German com2any in t"e e0ds

of cement3 concrete and is one of t"e /or0d8s 0arest

manufacturers of #ui0din materia0s It entered into a :

5oint 4enture /it" Indorama Cement Ltd in $arc" 9;%"is /as

a #i ste2 for Heide0#er Cement in esta#0is"in itse0f a 0on-term mar!et 2osition in $um#ai and Pune In Auust 9;3

Heide0#er Cement acuired a ma5or s"are in t"e cement

manufacturer $ysore Cements3 and too! o4er o2erations in

centra0 and sout"ern India

%"is 0ed to reater syneries and manaeria0 eciencies

0.:.9. Italcementi cement 4 @#ari Cement -imited

Ita0cementi Cement is amon t"e 0arest cement

manufacturin com2anies in t"e /or0d In 9+3 Ita0cementi

Cement Com2any /it" t"e "e02 of t"e Ciments FranWais3 a

su#sidiary for its 0o#a0 acti4ities3 entered into a :

areement /it" uari Cement Limited in And"ra Prades"3

? , P a e



sout"ern India %"is a4e t"e com2any a stron foot"o0d in

India %"e dea0 /as of a#out + mi00ion euros In 993 uari

Cement 0imited too! o4er Sri *is"nu Cement Limited3 a +9

$i00ion %onne ca2acity 20ant at Sita2uram %"e cement #usiness

t"en re/ from +> to < mi00ion tonnes 2er annum

In 9;3 t"e Ita0cementi Grou2 acuired fu00 contro0 of uari

Cement for 's ; crore3 to strent"en its 2resence in India

%"e com2anys net sa0es in t"e Indian mar!et /ere rou"0y

Euro ++; mi00ion in 9; In 9>3 Sri *is"nu Cement Limited

mered into uari and t"e same year a tota0 2roduction

ca2acity of < mi00ion tonnes /as ac"ie4ed Present ca2acity is

a0most around ; mi00ion tones

0.:.:. Mergers and Ac#isitions before '22:

• Gu5arat Am#u5a too! o4er +J sta!es in ACC

• Gu5arat Am#u5a too! o4er )LF cements and $odi

Cement• India Cement too! contro0 o4er 'aasi Cement and Sri

*is"nu Cement• Grasims acuired L=%3 Sri )i4i5ay Cement

0.;. International E8+os#re of Indian

Cement Ind#str$

Cement is one core industries in India For t"e 2ast se4en years

t"ere "as #een an immense ro/t" in t"e cement industry

)omestic cement demand ro/t" "as sur2assed t"e economic

ro/t" rate of t"e country for t"e 2ast cou20e of years O4er

t"e 2ast 4e years t"e ro/t" rate of cement demanded re/

@ , P a e



u2 to ?<> J /"ic" /as "i"er t"an t"e rate of ro/t" of

su220y at ?J and a0so t"e rate of ro/t" of ca2acity

addition durin t"e same 2eriod As it is !no/n t"at it is t"e

#asic materia0 in a00 ty2es of construction acti4ities t"rou"out

t"e 0o#e3 t"e ro/t" and e12ansion of a nation8s economy

de2ends u2on it3 as it su22orts t"e e12ansion of ot"er

industries3 "ence /e can say t"at t"e e12ort and im2ort

as2ects of cement is a uite sensiti4e issue

%"e e12ort and im2ort of cement de2ends u2on 4arious

factors3 0i!e 2rices3 o4ernment ru0es and reu0ation3

a4ai0a#i0ity of ra/ materia0s etc In India3 t"e e12ort of cement

too! 20ace #asica00y after t"e 0i#era0isation of t"e economy3

/"ic" furt"er #oosted t"e industry8s 2erformance in t"e 0ater

years %"e ma5or mar!ets of Indian cement industry are $idd0e

East and Sout" East Asia due to an a#undant 2resence of ra/

materia0s3 0ocation ad4antae = 2roduction of ua0ity cement

/it" 0atest tec"no0oy As 2er t"e data re0eased #y C$A3

Gu5arat Am#u5a Cements Ltd = ay2ee Industries are t"e to2

e12orters of cement from India In addition to t"is3 t"e /estern

2art of t"e country accounts for a22ro1imate0y @9J of t"e tota0

e12ort of cement from t"e country3 out of /"ic" Gu5arat a0one

"o0ds >J s"are Gu5arat #ased San"i Cement rea0ised <<J of

its tota0 sa0es from e12orts /"ere as Sauras"tra Cement

rea0ised 9J of its sa0es

A0t"ou" India "as #een considered as one of t"e most

2referred 0ocation for e12ort of cement3 in t"e 0ast fe/ years3

, P a e



t"e e12ort of cement "as #een aKected #y t"e 4arious

o4ernment 2o0icies For e1am20e3 mid-A2ri0 9?3 Go4ernment

of India im2osed a #an on e12ort of cement and c0in!er to its

nei"#ourin countries inc0udin Ne2a0 in order to 2reser4e t"e

country8s forein e1c"ane reser4e %"e o4ernment im2osed

#an on t"e e12ort of cement in order to #oost t"e su220ies and

contain 2rices of commodities in order to !ee2 inMation under

c"ec! But sur2risin0y t"is #an did not "a4e muc" im2act on

t"e cement industry3 #ecause /"en t"e recession came to an

end3 "ue in4estments /ere made in construction and

infrastructure sector TTIn t"e sca0 year 9@-9+3 t"e

cement e12ort of India dec0ined #y 9@J to 99> mi00ion tonnes3

e4en t"ou" t"e cement 2roduction /as increased a#out ++J

in t"e same sca0 year3 /"ic" aain 2ro4ed t"at t"e demand of

cement in domestic mar!et "ad increased o4er t"e 0ast 9 years

%"e ma5or im2orters of t"e Indian cement are Sri Lan!a and

$idd0e East countries3 /"ere rea0 estate sectors "a4e #oomed

in t"e 0ast 9 years Cement is #ein im2orted from

nei"#ourin countries ma!in cement duty free3 7it"

Go4ernment of India inter4ention Ho/e4er3 im2orts of cement

/i00 remain ne0ii#0e and /i00 not 2ose a t"reat to domestic

industry due to 0oistics issues and 0ac! of 2ort "and0in

ca2a#i0ities 7"en /e ta0! a#out t"e im2orts of cement in India3

t"en /e can8t 0ea4e Pa!istan Pa!istan "as #een considered as

one of t"e traditiona0 im2orter of cement to India Cement

im2ort from Pa!istan started from 9>3 /"en India 0ifted

im2ort duty and some of t"e additiona0 custom duties3 since

+ , P a e



t"en t"e Pa!istani rms "a4e e12orted TTT+3993?? tonnes of

cement to India But in 9@3 uestions on t"e ua0ity of

Pa!istani cement started to arise Later on3 9 Pa!istani cement

com2anies ot BIS XIndian Bureau of StandardY to e12ort

cement to India %i00 9?3 India im2orted > mi00ion tons of

cement from Pa!istan

India #anned t"e e12ort of cement in order to !ee2 a c"ec! on

inMation India 20ans to increase its im2ort of cement from

Pa!istan3 and #uy a tota0 of se4en mi00ion tons t"is sca0 year

7it" eKect from $ay +9?3 9+ 0a!"s 9+ mi00ion tones of

cement from Pa!istan are #ein im2orted

In tota03 increase in im2orts of a#out se4en mi00ion tons of

cement #y 9+3 is #ein e12ected %"e a#o0ition of im2ort

duty on coa0 is #ein demanded #y t"e cement industry since it

is a 4ery 4ita0 ra/ materia0 in t"e 2roduction of cement %"e

current im2ort duty on coa0 and 2et co!e is J $a5or cement

2roducers de2end on im2orts of t"is fue0 since domestic

a4ai0a#i0ity is 0imited Cement can #e im2orted /it"out duty

"o/e4er duty "as to #e 2aid #y cement manufacturers on t"e

im2orts of in2uts

Accordin to Cement $anufacturer8s Association C$A3 due to

t"e s"ortae3 coa0 and 2et co!e "as to #e im2orted Initia00y3

India did not a00o/ any im2orts t"rou" t"e 7aa" #order

Ho/e4er Pa!istan a00o/ed Af"anistan to e12ort to India

t"rou" t"e 7aa" #order Since Auust 9>3 +;

9 , P a e



manufacturers "a4e #een i4en 0icense for se00in cement in

India A#out 3 tons of cement "as entered t"e country3

0are0y t"rou" t"e rai0 route

Accordin to t"e ures announced #y Cement $anufacturers

Association of India3 cement consum2tion /as at its 2ea!

durin 9@-9+ It reistered ?; J year on year ro/t"

%"e ma5or 20ayers 0i!e S"ree Cement3 ai2ra!as" Associates3

)a0mia Cement and Grasim Cement re2orted "i" ro/t" rates

of 9? 2ercent3 9? 2ercent3 9<> 2ercent and 9+< 2ercent

year-on-year3 res2ecti4e0y $adras Cement and U0tratec"

Cement a0so re2orted ood ro/t" t"at is "i"er t"an t"e

industry a4erae In com2arisons from t"at of t"e 9> resu0tAm#u5a cement "as contracted on0y "a0f of t"e e12orts /"ic"

resu0ts to ; mi00ion tones

In s2ite of t"e recession "a4in a neati4e im2act on many

industries a00 o4er t"e /or0d3 t"e cement industry stood stron

and continued at a steady ro/t" rate A0t"ou" #ot" stee0 andcement are 4ita0 inredients for infrastructura0 de4e0o2ment3

t"e *A% on cement /as +9 2er cent #ut on0y 2er cent on

stee0

%o ma!e cement a4ai0a#0e3 im2ort duty /as reduced to ni0 from

+9J %"e o4ernment introduced a dua0 e1ercise duty on

cement /"erein 's; 2er mi00ion tonnes of cement /it" more

< , P a e

http://www.articlesbase.com/business-articles/the-indian-cement-industry-1042800.html




t"an 's+@ 2er #a and e1ercise duty of 's< mi00ion tonnes

on cement /it" 0ess t"an rs+@ 2er #a

In res2onse to Pa!istan8s #an on t"e e12ort of onions3 t"e

o4ernment is 20annin on im2osin an im2ort #an of cements

from t"at country %"e e12ort and im2ort of cement is oin to

increase as 0on as t"ere is an increase in t"e demand for

cement and infrastructura0 acti4ities

0.3. Technolog$ Intensit$

%ec"no0oy 20ays an im2ortant ro0e in t"e ro/t" of any

industry It is a0so true in t"e case of cement industry From 2ast

fe/ years Indian cement industry is continuous0y ado2tin ne/

tec"no0oy %"e tec"no0oy u2 radation "as "e02ed t"e

cement industry to increase t"e ca2acity of 20ant3 dec0ine in

t"erma0 enery consum2tion3 dec0ine in e0ectrica0 enery

consum2tion3 dec0ine in cost of 2roduction of cement3 dec0ine in

enery cost t"rou" co-2rocessin and reduction in t"e CO9

emission t"rou" #0ended cement and enery conser4ation

$oderniation at 20ant 2rocess "as a0so "e02ed to reduce t"e

"uman ca2ita0 need for creation of cement At 2resent3 t"e

ua0ity of cement in India is meetin /it" #enc"mar! and

de1trous to com2ete /it" t"e internationa0 20ayers

0.3.". Cement Prod#ction Process

Production of cement is t"ree ste2 2rocess-

• Pre2arin ra/ materia0s: $i1in"omoenisin3 rindin

and 2re"eatin dryin 2roduces t"e ra/ mea0

, P a e



• Burnin of ra/ mea0 to form cement c0in!er in t"e !i0n:

%"e com2onents of t"e ra/ mea0 react at "i"

tem2eratures @-+ ZC in t"e 2reca0ciner and in

t"e rotary !i0n3 to i4e cement c0in!er• Finis" rindin of c0in!er and mi1in /it" additi4es:

After coo0in t"e c0in!er is round toet"er /it"

additi4es

%"e 2rocess of 2roduction of cement is enery intensi4e %"e

"eat is used to com#ine t"e ra/ materia03 c"emica00y to createa com2ound /it" #indin 2ro2erties %"ese can #e round as a

dry mi1ture or com#ined /it" /ater to form s0urry At t"is

stae3 mi1ture of /ater 20ays an im2ortant im20ication in

2roduction 2rocess %"ere are diKerent cement

manufacturin 2ractices are: + dry 2rocess3 9 semi-/et

2rocess < semi-dry 2rocess and /et 2rocess %"e dry2rocess is contem2orary and more enery-ecient com2ared

to ot"er 2rocess

%"e /et 2rocess reuires 9? tonnes of coa0 and ++ !7" of

2o/er to manufacture one tonne of cement3 /"ereas t"e dry

2rocess reuires on0y +? tonnes of coa0 and + !7" of 2o/er O4er 0ast fe/ years3 Indian industry is i4in 2reference

to dry 2rocess enery ecient to ain t"e cost eciency in

t"e mar!et Since t"e commencement of t"e decontro0

2rocess3 in India manufacturers "a4e s"ifted to dry tec"no0oy

#y modifyin t"e 20ant

, P a e



Continuous tec"no0oica0 u2radin and assimi0ation of 0atest

tec"no0oy "as #een oin on in t"e cement industry Present0y

@< 2er cent of t"e tota0 ca2acity in t"e industry is #ased on

modern and en4ironment-friend0y dry 2rocess tec"no0oy and

on0y > 2er cent of t"e ca2acity is #ased on o0d /et and semi-

dry 2rocess tec"no0oy %"ere is tremendous sco2e for /aste

"eat reco4ery in cement 20ants and t"ere#y reduction in

emission 0e4e0 One 2ro5ect for co-eneration of 2o/er uti0isin

/aste "eat in an Indian Cement 20ant is #ein im20emented

/it" a2anese assistance under t"e Green Aid P0an %"e

induction of ad4anced tec"no0oy "as "e02ed t"e industry

immense0y to conser4e enery and fue0 and to sa4e materia0s

su#stantia00y Some cement 20ants "a4e set u2 dedicated 5etties

for 2romotin #u0! trans2ortation and e12ort )i22nicin

0.3.'. Ado+tion of -atest Technologies

%"e ro00er mi00 "as re20aced t"e #a00 mi00s3 /"ic" is used for

rindin ra/ materia0 and coa0 %"e industry is a0so em20oyin

2re #0endin stoc!2i0e and constant "omoeniin si0os for

"omoeniation of ra/ mea0 For enery ecient rindin3

industry started usin ro00er 2ress and "i" eciency

se2arators For 2ac!in 2ur2ose3 e0ectronic 2ac!in mac"ines is

ta!in 20ace3 /"ic" /i00 en"ance t"e /ei"t re0ia#i0ity and

eKecti4eness %"e industry "as a0so ado2ted t"e 2ac!ed #a

0oadin mac"ine3 /"ic" /i00 sa4e t"e time

Current0y3 a00 t"e cement 20ants are usin dry 2rocess /it" most

eKectua0 2o00ution contro0 measure to accom20is" t"e terms

; , P a e



2ro4ided #y t"e Po00ution Contro0 Aut"orities A00 t"e 20ants are

ado2tin 2o00ution contro0 instruments3 suc" as ESP93 fa#ric #a

dust co00ectors

Some of the new technologies are4

• Ad4anced contro0 systems /it" soft sensors

• A00 fans inc0udin H% /it" 4aria#0e s2eed dri4es3

2refera#0y *F)8sT<

• Interated com2uterised ua0ity contro0 systems

• $ines 20annin

• Bu0! ana0yser• 'a/ mi1 desin and #0endin

Alternati,e 1#els

Indian cement industry "as started uti0isin a0ternati4e fue0s

suc" as Pet co!e3 #iomass3 etc %"e industry can a0so disco4er

ot"er o22ortunities3 0i!e Uti0isin /orn tyres3 2aint s0ude3

munici2a0 so0id /aste

0.3.0. esearch and *e,elo+ment

'esearc" = de4e0o2ment 20ays an im2ortant ro0e for ro/t" of

any industry '=) 2erformance "e02s in t"e ada2tion and

a#sor2tion of tec"no0oy In India3 t"e main oranisations

dedicated to researc" and de4e0o2ment acti4ities are-

9 An electrostatic precipitator (EP)! or electrostatic air cleaner is a particulate collection device that removes

particles from a flowing gas (such as air) using the force of an induced electrostatic charge. Electrostaticprecipitators are highly efficient filtration devices that minimally impede the flow of gases through the device! andcan easily remove fine particulate matter such as dust and smo"e from the air stream.

< A 4aria#0e-freuency dri4e *F) is a system for contro00in t"e rotationa0 s2eed of an a0ternatin

current AC e0ectric motor #y contro00in t"e freuency of t"e e0ectrica0 2o/er su220ied to t"emotor

> , P a e

http://en.wikipedia.org/wiki/Particulate


http://en.wikipedia.org/wiki/Electrostatic_charge

http://en.wikipedia.org/wiki/Filtration


http://en.wikipedia.org/wiki/Alternating_current


http://en.wikipedia.org/wiki/Electric_motor



http://en.wikipedia.org/wiki/Electrostatic_charge







• Nationa0 Counci0 for Cement and Bui0din $ateria0s

NCB• Centra0 'esearc" Station C'S of ACC Limited

•

)a0mia Institute of Scientic and Industria0 'esearc")ISI'

%"e mac"inery su220iers for t"e industry a0so carry out t"e

/or! of researc" and de4e0o2ment %"e !ey mac"inery su220ier

/it" o/n '=) di4ision are D

• Larsen = %ur#o

• 7a0c"andnaar industries Limited

7it" t"e cement 20ants3 t"e centra0ised '=) Centre is

esta#0is"ed #y Cement Cor2oration of India It "e02s t"e

industry to ado2t t"e ne/ im2orted tec"no0oy and to de4e0o2

ne/ tec"no0oy to increase t"e eciency of industry %"e main

area of researc" is enery 2reser4ation3 2roduction

o2timisation3 ua0ity enric"ment3 creation of ne/ ty2e of

cement3 /aste "eat reco4ery and com2uteried met"ods for

uarry 20annin

Current tec"no0oies used in industry are not sucient for

more ecient 2roduction of cement in en4ironment friend0y

/ay

Future '=) EKorts

• $a1imisin consum2tion of a0ternate fue0s3 My as"3 s0a

and ot"er ra/ materia0 t"at /i00 0ead to 0ess enery

consum2tion

? , P a e



NANO %ECHNOLOG( in cement manufacture and use-

nanotec"no0oy can #e t"e !ey for reducin CO9 emission

in t"e 2roduction of cement may "o0d t"e !ey to reducin

car#on dio1ide emissions in t"e 2roduction of cement

Nano modication of concrete is 2otentia00y de1trous of

sinicant0y im2ro4in its tensi0e 2o/er3 tou"ness3

ducti0ity3 and dura#i0ity 2ro2erties• Better com#ustion eciency tec"no0oies

Table 9 ( C#rrent In,estment in )* acti,it$

Com+an$ name s. In crores =March

'2"2>Am#u5a cement +9@ )ecem#er 9@ACC Limited <9

& cement

U0tratec" cement Bir0a cement & 0a1s"mi <+Prism cement ?Andr"a cement India cement $adras cement Binani cement S"ree cement ;<@

=So#rce4CAPITA-I&E.CM>

%"e current status for researc" = de4e0o2ment s"o/s3 t"at

Indian com2anies are not ma!in use of researc" =

de4e0o2ment to ro/ in t"e industry India can #ecome num#er

F %"e term nanotec"no0oy "as e4o04ed o4er t"e years 4ia termino0oy drift to mean anyt"in

sma00er t"an micro tec"no0oy3 suc" as nano 2o/ders3 and ot"er t"ins t"at are nanosca0e in sie3#ut not referrin to mechanisms t"at "a4e #een 2ur2osefu00y #ui0t from nanosca0e com2onents

@ , P a e



one in t"e /or0d3 if Indian industry /i00 ma!e use of '=) to

2roduce /it" more ca2acity /it" t"e "e02 of ne/ tec"no0oy

/it"out "armin t"e en4ironment

0.5. Marketing Initiati,es

As com2etition is increasin in t"e cement industry #ecause

forein 20ayers are enterin t"e domestic mar!et3 mar!etin

#ecomes an essentia0 tas! for cement com2anies to sur4i4e In

t"e 2ast cement /as more of a commodity /"ic" reuired

minimum mar!etin eKort #ut /it" c"anes in #uyer #e"a4iour

cement "as e4o04ed as a #rand /"ic" reuires e1tensi4e

mar!etin eKorts Cement com2anies are fa00o/in t"e stratey

of #rand #ui0din to diKerentiate t"emse04es Ce0e#rity

endorsement and e1tensi4e co4erae are t"e !ey e0ements

t"at cement com2anies are focusin to "a4e to2 reca00 amonusers

Binani Cements Ltd started #y sinin 0m 2ersona0ity Amita#"

Bac""an as its #rand am#assador it 2osted ;J ro/t" in

2rot #efore ta1 at 's 9? crore in 9>-?Accordin to %"e

Economic %imes t"e com2anies e1tensi4e ad4ertisin cam2ain/as one of t"e main reasons #e"ind t"e ro/t" in sa0es

Simi0ar0y & La!s"mi "ad sined actor Om Puri CS Sadasi4an3

C"ief of $ar!etin3 & La!s"mi Cement3 said t"at cement is no

0oner 5ust a commodity and to ensure 0on term 2rota#i0ity3

a00 com2anies "a4e to #ui0d its #rand

Frenc" mu0tinationa0 Lafare "as sined cric!eter $a"endraSin" )"oni as t"e #rand am#assador for t"eir #rand3 Concreto

; , P a e



As 2er *inod une5a3 $) of Binani Cement Ltd #ecause of suc"

2romotiona0 met"ods t"ere "as #een a stee2 rise in t"e sa0es of

t"e com2anies s2ecia00y in rura0 mar!ets /"ere t"e im2act of

#rand am#assadors are "i"

On t"e ot"er side /e "a4e com2anies 0i!e U0tratec" /"ic" does

not #e0ie4e in ce0e#rity endorsement3 it 2romoted its 2"rase3

[U0tratec"3 t"e enineers c"oice8 em2"asiin t"at its cement is

most 2referred #y enineers in t"e country U0tratec" Cement

/as a0so one of t"e main s2onsorers for 'a5ast"an 'oya0s3 t"e

ai2ur franc"ise of t"e Indian Premier Leaue %"e com2anies

dea0 /it" 'a5ast"an 'oya0s /as in t"e rane of R9 mi00ion

India Cement Ltd #aed C"ennai8s IPL team /it" an aim to

im2ro4e its #rand 4isi#i0ity and reca00 /ou0d "e02 it #ui0d itse0f

as a #rand as it e12ands into ne/ mar!ets Accordin to India

Cement t"e com2any8s #rands Coromande03 San!ar and 'asi

/ere "ouse"o0d names in t"e Sout" #ut in $a"aras"tra3 /"ere

it is a ne/ entrant3 t"e Coromande0 cement #as s2ort t"e ta

0ine3 [from t"e "ouse of C"ennai Su2er &ins8 %"e com2any

/as condent t"at CS& /ou0d su22ort it into t"e mar!ets /"ere

it is ne/ 0i!e Gu5arat3 $ad"ya Prades" and 'a5ast"an in future

Cements are no more #ein so0d in mar!ets as commodities #ut

as #rands to /"ic" 2eo20e can re0ate $ost of t"e cement

com2anies re0ate t"eir 2roduct /it" strent" /"ic" can #e

5ustied #y t"e fo00o/in ta 0ines

• Saar Cement- So0id cement so0id "ome

• U0tratec" Cement- t"e enineers c"oice

• Bu0and Cement- s"a!ti *is"a0 ra!c"a !i d"a0

• P Cement- Andar se so0id

Table : ( E8+endit#re on Marketing

;+ , P a e



Com+an$ name s. In crores

=March '2"2>Am#u5a Cement @; )ecem#er

9@ACC <+;

& Cement 9;<+U0tratec" Cement +<Bir0a Cement ><

& La1s"mi Prism Cement <<+Andr"a Cement >+India Cement <+;

$adras Cement ?>+Binani Cement 9?;S"ree Cement ><@>)a0mia Cement >Century Cement >;Lafare Cement <+

source: ca2ita0inecom

At current com2anies are in4estin a 0ot in mar!etin acti4ities %"e a#o4e ta#0e s"o/s t"at U0tratec" is in4estin around +<

crore on ad4ertisin After t"at3 t"ere is a "ue diKerence

#et/een t"e in4estments of com2anies $ar!etin is 20ayin an

im2ortant ro0e for cement com2anies to e12and t"e sa0e of

com2anies

0."2. 1#t#re #tlook

%"e future of an industry 0i!e cement #asica00y de2ends u2on

t"e 2ace in sectors 0i!e infrastructure = construction3

manufacturin3 trans2ortation Because /"en t"ese industry

/i00 ro/ u2 t"e demand of t"e cement /ou0d increase /it" t"e

time3 and na00y t"e ro/t" of t"e industry ie cement industry

;9 , P a e



/i00 ta!e 20ace A2art from t"is3 as it is /e00 !no/n t"at3 cement

is suc" a 2roduct /"ic" 20ays a ma5or ro0e in ro/t" and

e12ansion of a0most eac" and e4ery sector3 so t"e future

demand of t"e industry /i00 a0/ays #e on dynamic /ay3 /"ic"

furt"er #oost t"e industry a0so

As far as t"e future of t"e Indian cement

industry is concerned3 t"e industry is e12ected to ro/ at a

CAG' of around +J durin 9+-++-9+<-+ Accordin to

t"e ACC- t"e 0arest cement com2any of country- o4ernment8s

continued t"rust on infrastructure /i00 "e02 t"e industry to ro/

at t"e rate of around @-+J annua00y in t"e ne1t t/o years %"e

diKerent o4ernment8s initiati4e #y #ot"3 centra0 as /e00 as

state o4ernments3 0i!e N'EGA3 NNU'$3 Indira Aa/as (o5na

etc "as acted as t"e !ey dri4er of cement industry in 0ast fe/

years and t"ey are e12ected to do so in t"e fort" comin years

At 2resent3 around -;J of t"e tota0 cement is

consumed #y "ousin sector %"is is e12ected to c"ane in t"e

comin years3 #ecause3 /"en t"e infrastructure de4e0o2ments

0i!e road3 rai0/ays3 2o/er 20ants3 #rides etc /i00 ta!e 20ace t"e

sinicant 2ercentae of cement /i00 #e consumed #y t"ese

sectors %"e demand of cement is a0so oin to increase in t"e

aricu0ture sector For e1am20e3 construction of ne/ o-do/ns3

si0os3 /are"ouses /i00 #oost t"e demand of cement

Accordin to t"e researc" re2ort named .Indian cement

industry forecast 9+988 #y P' 0o3 a0most a00 ma5or cement

com2any in t"e country "a4e decided to e12and t"eir

2roduction ca2acity in t"e comin 9-< years X fe/ of t"em "a4e

;< , P a e



a0ready e12andedY3 /"ic" c0ear0y indicates t"at3 t"e demand of

t"e cement is oin to increase in t"e fort"comin years %"e

e12ansion 20an of cement com2anies /i00 not on0y "e02 t"em to

increase t"eir domestic 2resence3 it /i00 a0so ena#0e t"em to

0oo! for future e12ort o22ortunities

%"e a4ai0a#i0ity of 4arious ty2es of cement 0i!e /"ite cement3

Port0and cement3 oi0 /e00 cement etc is a distinct as2ect of

Indian cement industry3 /"ic" 20ays an im2ortant ro0e in t"e

#usiness of cement in its res2ecti4e mar!et In t"e comin

years3 it is e12ected t"at Indian cement industry /ou0d 0ead

due to t"e diKerent ty2es and 4arieties of 2roduct

Accordin to $r *inod 5une5a3 $)3 Bra5 Binani Grou23 in t"e

ne1t + years3 India /i00 #ecome one of t"e ma5or e12orters of

c0in!er and rey cement to midd0e east3 Africa = ot"er

de4e0o2in nations In addition to t"is t"e increasin num#er of

20ants near t"e 2orts "as a0so added an ad4antae to t"e

e12ort of t"e cement from country Actua00y t"ese data c0ear0y

indicates t"at3 India is oin to #ecome one of t"e ma5or

e12orters of cement in t"e /or0d

It is a0so e12ected t"at3 many forein com2anies /i00 in4est in

t"e cement sector in India #ecause of constant demand and

ri"t 4a0uation of t"e 2roduct Indian com2anies /i00 a0so o

0o#a0 t"rou" FCCB or G)' route

0."". Com+arison with ther Co#ntries

Com+arison with the US Cement Ind#str$

; , P a e



USA is t"e t"ird 0arest manufacturer of cement a0on /it"

C"ina and India It com2rises <@ cement com2anies /it" ++

cement 20ants s2read in <; states CE$E\3 SAB #ein in to2

cement com2anies of t"e US

In t"e US cement trade is 2atterned as t"e ma1imum

consum2tion is #et/een $ay and Octo#er $ost of t"e industry

is concentrated in a 2articu0ar reion as cost of trans2ortation

is "i" t"an its actua0 4a0ue %"e domestic 2roduction is a0/ays

s"ort of demand3 t"erefore3 de2ended on im2orts to a 0are

e1tent 7"ereas3 in India3 demand "as an ede o4er su220y3

and t"e rate of e12orts are "i"

In terms of em20oyment3 t"e cement industry in t"e US "as

ained eciency t"rou" automation and c0osure of outdated

units %"is "as 0ed to a dramatic decrease in t"e 0e4e0s of

em20oyment In India3 cement industry #ein a #oomin

industry3 more and more 2eo20e are 5oinin t"is sector )ue to

ro/in infrastructure 2ro5ects3 /or!in in t"is industry is

considered a 0ucrati4e o2tion for t"e fres"er8s and younsters

%"e US cement industry is 0ess enery intensi4e as com2ared to

Indian cement industry /"ic" is e1treme0y industry intensi4e

and uses coa0 in 0are uantities

Com+arison with the Chinese Cement Ind#str$

Since +@?3 C"ina8s cement industry "as #een ran!ed as no+

/it" a "i" ro/t" rate It is rou"0y dou#0e t"e 2roduction

ca2acity of India ie c"ina8s 2roduction ca2acity is < mi00ion

tonnes3 /"ereas India8s 2roduction is ++9 mi00ion tones

; , P a e



C"ina "as ado2ted 4arious /ays of e0iminatin #ac!/ard

cement ca2acity It is focusin on reduction of car#on

emissions %"at8s /"y it "as ado2ted dry manufacturin

2rocess to form cement /"ic" is more fue0 ecient %"e dry

2rocess reuires on0y +? tonnes of coa0 and + !7" of

2o/er %"e C"inese o4ernment 2rocesses /astes 2roduced in

t"e cement industry O4er 9 2ro5ects "a4e #een started to

reduce en4ironment 2o00ution

India is t"e second 0arest 2roducer of cement in t"e /or0d It

"as a "ue ro/t" 2ros2ects due to 4arious infrastructure

2ro5ects3 "ousin faci0ities and road net/or!s %"ou"3 India

needs to /or! on minin and en4ironmenta0 issues Ot"er/ise

industria0 ro/t" /ou0d #e rendered 4a0ue0ess and s0o/ t"e

2ace of t"e ro/t"

0."'. Concl#sion

It can #e conc0uded t"at Indian cement industry 20ays an

im2ortant ro0e in t"e de4e0o2ment of country %"e 2rices of

cement is risin from 2ast fe/ year3 so it8s res2onsi#i0ity of

Go4t to ta!e t"e c"are and try to nd out t"at carte0 e1ists in

cement industry or not %"e 2rice "i!e in t"e cement industry is

aKectin t"e 0o/er c0ass 2eo20e in India3 so it is necessary to

sta#i0ise t"e 2rice at t"e #enet of com2anies as /e00 as

consumers India can #ecome num#er one in cement

2roduction3 /"en t"ere /i00 #e no corru2tion and industry /i00

concentrate on 'esearc" = de4e0o2ment %"e demand for

;; , P a e



cement /i00 ro/ in t"e future3 as 2o2u0ation is increasin %"e

Indian cement industry is e12ected to ro/ ra2id0y in comin

years due to "ea4y demand from "ousin3 retai0 and

infrastructure industry

7. eference

• CAHendric!s3 eta0 9@ .Emission 'eduction of

Green"ouse Gases from t"e Cement Industry63 IEA

Green"ouse as '=) Proramme3 U& • Sent"i0!umar S3 eta0 9@ .)e4e0o2menta0 Issues in

Indian Cement Industry6 SC$S ourna0 Of Indian

$anaement3 A2ri0-$ay3 9@• 'itu 'a5 Arora and 'una Sar!ar9> .)etectin Carte0s

in t"e Indian cement industry: An Ana0ytica0 Frame/or!6

Industria0 and $anaement Enineerin )e2artment3 II%

&an2ur• L G Burane and S"ruti (amini 9? .Performance of

Indian Cement Industry D %"e com2etiti4e 0andsca2e6• Arindam C"a!ra#arti3 eta0 9? .Ba0anced Gro/t": A

Strateic Im2erati4e for Indian Cement Industry6 %ata

Strateic $anaement Grou2• Pau0 0im2i0a/ and Siemens AG 9? .Cement 20ant

Automation In Emerin mar!ets63 Emerin $ar!ets

'e2ort• 'e5ie Geore Pa00at"itta9? .Can U0tratec" #e ne1t

mar!et 0eader6• Im2ro4in en4ironmenta0 2erformance 9- Brist0o0

En4ironmenta0 Aency3 *-+

;> , P a e

http://et.al/

http://et.al/

http://et.al/

http://et.al/

http://et.al/

http://et.al/



• Ernst 7orre00 and C"ristina Ga0its!y 9? .Enery

Eciency Im2ro4ement and Cost Sa4in O22ortunities for

Cement $a!in6

• S"i4ani Anand 9@ .Identifyin Carte0 usin Economic

E4idence DA case study of Indian Cement Industry6-

Com2etition Commission Of India

Vario#s ?ebsites 4

• Ca2ita0inecom

• Indiain#usinessnicin

• Financia0e12resscom• ///i#eforindustrycementas21

• ///economy/atc"com ] Business And Economy

• ///#usinessma2sondiacom• ///etinte00iencecom

• "tt2:///#ri"t"u#comenineerinci4i0artic0es>@

as21• "tt2:///mar!et/irecom2ress-re0easePro#in-t"e-US-

Cement-Industry-++;>;;9"tm• "tt2:///artic0es#asecom#usiness-artic0est"e-indian-

cement-industry-+9?"tm0• "tt2:///t"e"indu#usiness0inecom9@;9?stories9

@;9?+9>9"tm• "tt2:economictimesindiatimescomne/sne/s-#y-

industryser4icesad4ertisinu0tratec"-to-s2onsor-for-

ra5ast"an-roya0s-in-i20artic0es"o/<>9@cms• "tt2:///nancia0e12resscomne/scement-ma!ers-

ste2-u2-#rand-#ui0din-dri4e<9@+9>• "tt2:///#usiness-standardcomindiane/scement-

rms-5um2t"e-#rand/aon<;<+;• "tt2:economictimesindiatimescomne/sne/s-#y-

industryser4icesad4ertisinFor-Binani-Cement-Amita#"-

Bac"c"an-is-a-#i-Burdenartic0es"o/<;cms

;? , P a e

http://www.ibef.org/industry/cement.aspx

http://www.google.co.in/url?url=http://www.economywatch.com/business-and-economy/&rct=j&ei=OFCWS5LUGtW7jAeJm6GLCg&sa=X&oi=breadcrumbs&resnum=3&ct=result&cd=1&ved=0CBMQ6QUoAA&q=indian+cement+industry&usg=AFQjCNF9ALT5nbQ8logEfnQ536YhiCQtSQ

http://www.business.mapsofindia.com/

http://www.etintelligence.com/

http://www.brighthub.com/engineering/civil/articles/47509.aspx


http://www.marketwire.com/press-release/Probing-the-US-Cement-Industry-1167662.htm




http://www.thehindubusinessline.com/2009/06/28/stories/2009062851270200.htm


http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/ultratech-to-sponsor-for-rajasthan-royals-in-ipl/articleshow/4370209.cms



http://www.financialexpress.com/news/cement-makers-step-up-brand-building-drive/329127/0


http://www.business-standard.com/india/news/cement-firms-jumpthe-brandwagon/356316/


http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/For-Binani-Cement-Amitabh-Bachchan-is-a-big-Burden/articleshow/3464554.cms



http://www.ibef.org/industry/cement.aspx

http://www.google.co.in/url?url=http://www.economywatch.com/business-and-economy/&rct=j&ei=OFCWS5LUGtW7jAeJm6GLCg&sa=X&oi=breadcrumbs&resnum=3&ct=result&cd=1&ved=0CBMQ6QUoAA&q=indian+cement+industry&usg=AFQjCNF9ALT5nbQ8logEfnQ536YhiCQtSQ

http://www.business.mapsofindia.com/

http://www.etintelligence.com/





















• "tt2:mar!etin2ractice#0os2otcom9++#inani-

cement-sadiyon-!e-0iye"tm0• "tt2:///0afare-cementcoin/2s2orta0

•

"tt2:///sa4eondis"comforumu0tratec"-tcs-s2onsor-for-ra5ast"an-roya0s-i20-t-++?<@"tm0

• "tt2:///"induonnetcom#usiness0ine99@stor

ies+9@+9+"tm• "tt2:///nancia0e12resscomo0dfedai0y99@f

co9@<+"tm0• "tt2:///"eide0#ercementcom0o#a0encom2anyr

ou2^areasasia^2acicindia"tm• "tt2:///nancia0e12resscomne/sita0cementi-sna2s-

u2-uari-for-rs-;-cr+;?;;<<• "tt2:///#usiness-standardcomindiane/s"o0cim-

#uys-a2-#ased-encore-cements<??;

Tele+honic con,ersation with Mr.6.!. &ara$an =oint

Secretar$G CMA>

http://marketingpractice.blogspot.com/2010/01/binani-cement-sadiyon-ke-liye.html


http://www.lafarge-cement.co.in/wps/portal/

http://www.saveondish.com/forum/ultratech-tcs-sponsor-for-rajasthan-royals-ipl-t-11839.html


http://www.hinduonnet.com/businessline/2000/04/29/stories/14291201.htm


http://www.financialexpress.com/old/fe/daily/20000429/fco29031.html


http://www.heidelbergcement.com/global/en/company/group_areas/asia_pacific/india.htm


http://www.financialexpress.com/news/italcementi-snaps-up-zuari-for-rs-600-cr/168663/3


http://www.business-standard.com/india/news/holcim-buys-ap-based-encore-cements/384086/




http://www.lafarge-cement.co.in/wps/portal/













58870441 Indian Cement Industry

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