2017 2018E 2019E 2020E 2021E

Industry Capacity mn tonnes 33.8 37.8 43.8 45.8 47.8

Proposed addition to capacity mn tonnes 4 6 2 2
Capacity Utilization 80% 77% 71% 72% 74%
Industry Demand mn tonnes 27.04 28.93 30.96 33.13 35.44
Growth rate in Industry Demand 7% 7% 7% 7% 7%

Market Share of AB cement mn tonnes 10% 10% 10% 10% 10%

Cement Demand for AB cement mn tonnes 2.70 2.89 3.10 3.31 3.54
OPC 70% 60% 50% 50% 50%
PPC 30% 40% 50% 50% 50%

Cement Demand for AB cement mn tonnes

OPC mn tonnes 1.89 1.74 1.55 1.66 1.77
PPC mn tonnes 0.81 1.16 1.55 1.66 1.77

Clinker Requirement mn tonnes

OPC mn tonnes 95%
PPC mn tonnes 75%

Clinker Requirement in AB cement mn tonnes 2.41 2.52 2.63 2.82 3.01

OPC mn tonnes 1.80 1.65 1.47 1.57 1.68
PPC mn tonnes 0.61 0.87 1.16 1.24 1.33

Clinker Capacity in AB cements mn tonnes 2.8 2.8 3.5 3.5 3.5

Actual Clinker Production mn tonnes 2.41 2.52 2.63 2.82 3.01

OPC mn tonnes 1.80 1.65 1.47 1.57 1.68
PPC mn tonnes 0.61 0.87 1.16 1.24 1.33

Actual Cement Production mn tonnes 2.70 2.89 3.10 3.31 3.54

OPC mn tonnes 1.89 1.74 1.55 1.66 1.77
PPC mn tonnes 0.81 1.16 1.55 1.66 1.77

Cement Price Rs./tonne 2,734.84 2,816.88 2,901.39 2,988.43 3,078.08

Increase in cement price 3% 3% 3% 3% 3%
Excise Duty (% of revenue) 14.92% 14.92% 14.92% 14.92% 14.92%
Sales tax rate 12.51% 12.51% 12.51% 12.51% 12.51%
Freight cost(% of Revenue) 17.66% 17.66% 17.66% 17.66% 17.66%

Limestone
Avg Consumption per ton of clinker 1.2 1.2 1.2 1.2 1.2
Price per tonne 85 87.55 90.1765 92.8818 95.66825
Increase in price 3% 3% 3% 3% 3%
Laterite
Avg Consumption per ton of clinker 0.1 0.1 0.1 0.1 0.1
Price per tonne 250 257.5 265.225 273.1818 281.3772
Increase in price 3% 3% 3% 3% 3%

Gypsum
Avg Consumption per ton of clinker 0.04 0.04 0.04 0.04 0.04
Price per tonne 556 572.68 589.8604 607.5562 625.7829
Increase in price 3% 3% 3% 3% 3%

Pozzolone
Avg Consumption per ton of clinker 0.01 0.01 0.01 0.01 0.01
Price per tonne 420 432.6 445.578 458.9453 472.7137
Increase in price 3% 3% 3% 3% 3%

Fly ash
Avg Consumption per ton of clinker 0.06 0.072 0.0864 0.0864 0.0864
Price per tonne 331 340.93 351.1579 361.6926 372.5434
Increase in price 3% 3% 3% 3% 3%

Stores & Spares (% of Cement Production) 91.35 94.09 96.91 99.82 102.81
Increase in cost 3% 3% 3% 3% 3%

Fuel (% of cement production) 341.72 351.97 362.53 373.40 384.60

Increase in cost 3% 3% 3% 3% 3%

Power (% of cement production) 386.09 247.68 255.11 262.76 270.64

Increase in cost 3% 3% 3% 3% 3%

Salary & Wages 247 271.70 298.87 328.76 361.63

Increase in Salary and Wages 10% 10% 10% 10% 10%

Packing Expense 119.82 123.42 127.12 130.93 134.86

Increase in Packing Expense 3% 3% 3% 3% 3%

Repair and Maintainance 24.78 25.52 26.29 27.08 27.89

Increase in Repair and Maintainance 0.03 3% 3% 3% 3%

Other manufacturing expense 15.16 15.62 16.09 16.57 17.07

Increase in other manufacturing expense 3% 3% 3% 3% 3%

Selling expense 76.92 79.23 81.61 84.06 86.58

Increase in Selling Expense 0.03 3% 3% 3% 3%
Administrative Expense 5.18 5.33 5.49 5.66 5.83
Increase in Administrative Expense 3% 3% 3% 3% 3%
 2022E
49.8
2
76%
37.92
7%

10%
3.79
50%
50%

1.90
1.90

3.22
1.80
1.42

3.5

3.22
1.80
1.42

3.79
1.90
1.90

3,170.43
3%
14.92%
12.51%
17.66%

1.2
98.5383
3%
 0.1
289.8185
3%

0.04
644.5564
3%

0.01
486.8951
3%

0.0864
383.7197
3%

105.90 should not be linked to revenue. Else growth in revenue= growth in Stores and Spares
3%

396.14
3%

278.76
3%
Inflation=3% GR in De 7%
397.80 Thus 1.03*1.07=1.10 Hence we use 10%
10% It is because salary doesn't include GR in cement

138.91
3%

28.72
3%

17.58
3%

89.17
3%
6.00
3%
s and Spares
 2017 2018E 2019E 2020E
### Expanding Clinker Capacity

Year of Capex 2018

Capex 400 400 0 0
Added Capacity 0.7 0 0.7 0
Increase in Capex per year of delay 3%

### Setting up Captive power plant

Year of Capex 2018
Capex 810 763.5027 0 0
Saving in Cost/mt 150 150 0 0
Increase in Capex per year of delay 3%
2021E 2022E

0 0
0 0

0 0
0 0
 (Figures in Rs. Million)
2017 2018E 2019E 2020E 2021E
Gross Sales 7395 8150.03 8982.148 9899.225 10909.94
Less: Excise Duty 1,103.00 1,215.62 1,339.73 1,476.52 1,627.27
Less: Sales Tax 822.00 905.93 998.42 1,100.36 1,212.71
Less: Freight cost 1,306.00 1,439.34 1,586.30 1,748.26 1,926.76
Net Sales 4,164.00 4,589.14 5,057.70 5,574.09 6,143.20

Raw Material Expense 430.83 479.08 535.31 589.97 650.20

Stores and Spares 247.00 272.22 300.01 330.64 364.40

Fuel 924.00 1,018.34 1,122.31 1,236.90 1,363.19

Salary and Wages 247 271.7 298.87 328.757 361.6327
Power 1,044.00 716.60 789.77 870.40 959.27
Packing Expense 324 357.0804 393.5383 433.7186 478.0012
Repair and Maintainance 67 73.8407 81.37984 89.68872 98.84593
Other manufacturing expense 41 45.1861 49.7996 54.88414 60.48781
Selling expense 208 229.2368 252.6419 278.4366 306.865
Administrative Expense 14 15.4294 17.00474 18.74093 20.65437
 2022E
12023.84
1,793.41
1,336.52
2,123.48
6,770.42

716.59
401.61

1,502.37
397.796
1,057.21
526.8052
108.9381
66.66362
338.1959
22.76319
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E
2017 2018E 2019E 2020E
2021E 2022E