Cement AR 0708

Cement
Annual Review July 2008
Summary
CRISIL Research expects

cement consumption to
increase at a CAGR of 8 per
cent over the next 5 years.
However, cement capacity
additions of 115 million tonnes Contents
(translates of around 60 per
cent of existing capacity) will Part A: Margins to be under pressure
lower operating rates. Adding Executive summary A-1
to the woes of cement Demand growth to sustain, albeit slower than the last 5 years A-3
Excess capacity will lead to a fall in prices A-13
companies, large bunching up
Cement companies will lack pricing flexibility A-23
of capacities is expected in
2009-10 and 2010-11. We Part B: State of the industry
therefore expect cement prices Industry characteristics B-1
Products and technology B-13
to fall by as much as Rs 15-20
Cement manufacturing process B-21
per bag over the next 2 years Region-wise scenario B-29
(2008-09 and 2009-10) as Player profile B-37
operating rates dip.
Part C: Industry statistics
Demand supply C-1
State profile C-29
Raw material C-45
Tariffs C-57
Market share and financials C-59
Exports C-67
Cost C-71
This document has been prepared by Ruchira Mehta and Ajay D'souza (Head of Research). For any queries
please get in touch with our client servicing desk. (clientservicing@crisil.com. Ph -022-66913561)
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Opinion July 2008
Sections
Executive summary A-1

1.0 Demand growth to sustain, albeit slower than the last 5 years A-3
- Cement consumption to register a CAGR of 8 per cent over
the next 5 years A-3
- Housing sector to be the key demand driver A-4
- Infrastructure investments to continue to boost cement consumption A-5
- Commercial construction to continue, albeit at a slower pace A-6
- Industrial projects A-6
- Eastern region dependent on industrial projects A-7
- Southern region - growth momentum to continue A-8
- Net outbound movement to decline marginally A-9
- Western region A-9
- Central region - cement consumption to be sustained A-10
2.0 Excess capacity will lead to a fall in prices A-13
- Capacities in excess of 100 million tonnes to be added over
the next 5 years A-13
- AV Birla Group betting on northern markets A-15
- Blending to increase marginally A-21
- Blending calculation A-22
3.0 Cement companies will lack pricing flexibility A-23
Box
1.0 Demand growth to sustain, albeit slower than the last 5 years
01 Demand forecasting methodology A-3
Charts
01 Region-wise key indicators A-4
02 Net outbound movement (domestic) in the northern region in 2007-08 A-7
03 Net outbound movement (domestic) in southern region in 2007-08 A-9
Continued…
CRISIL RESEARCH CEMENT ANNUAL REVIEW A-i

…continued
Figures
Executive summary
01 Demand-supply scenario in cement industry A-1
02 Operating Margins on downward trend A-2
01 Growth in cement consumption A-3
02 Comparison of infrastructure investments - 2001-02 to 2006-07 and
2006-07 to 2011-12 A-5
03 Cement consumption and production – North A-6
04 Cement consumption and production – East A-8
05 Cement consumption and production – South A-8
06 Cement consumption and production – West A-10
07 Cement consumption and production – Central A-11
2.0 Excess capacity will lead to a fall in prices

01 Incremental cement capacity and consumption A-13
02 Net cement capacity additions and clinker operating rates A-14
03 Clinker operating rates and cement prices A-14
04 Clinker utilisation rates under different scenarios -all-India A-15
05 Company-wise capacity share in northern region (2007-08) A-16
06 Company-wise capacity share in northern region (2012-13) A-16
07 North – Clinker operating rates and cement prices A-16
08 North – Net cement capacity additions A-16
09 East – Clinker operating rates and cement prices A-17
10 East – Net cement capacity additions A-17
11 Company-wise capacity share in eastern region (2007-08) A-17
12 Company-wise capacity share in eastern region (2012-13) A-17
13 South – Clinker operating rates and cement prices A-18
14 South – Net cement capacity additions A-18
15 Company-wise capacity share in southern region (2007-08) A-19
16 Company-wise capacity share in southern region (2012-13) A-19
17 West – Clinker oprating rates and cement prices A-19
18 West – Net cement capacity additions A-19
19 Company-wise capacity share in western region (2007-08) A-20
20 Company-wise capacity share in western region (2012-13) A-20
21 Central – Clinker operating rates and cement prices A-20
22 Central – Net cement capacity additions A-20
23 Company-wise capacity share in central region (2007-08) A-21
24 Company-wise capacity share in central region (2012-13) A-21
25 Product mix A-21
continued…
A-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

…continued
Figures
3.0 Cement companies will lack pricing flexibility

01 Cement capacity and consumption A-23
02 Power cost v/s operating expenses A-24
03 Non-coking coal price movement A-24
04 Road freight v/s diesel prices A-24
Tables
01 Housing demand forecast A-4

01 Blending calculation A-22

01 Operating margins A-25
CRISIL RESEARCH CEMENT ANNUAL REVIEW A-iii

Executive summary
Cement consumption to increase at a CAGR of 8 per cent over the next 5 years
CRISIL Research expects domestic cement consumption to register a CAGR of 8.0 per cent in the next 5 years.
This is marginally lower than the 8.2 per cent CAGR recorded in the preceding 5 years. Growth in the northern
and southern regions is expected to be higher than the all-India average. However, cement consumption in the
western region, which rose by 8.1 per cent (CAGR) over the last 5 years, is expected to be sluggish in the
subsequent corresponding period on the back of the expected slowdown in residential and commercial
construction over the next 2-3 years.
Capacities in excess of 100 million tonnes to be added over the next 5 years
CRISIL Research expects 115 million tonnes (additional clinker capacity of 90 million tonnes) of cement capacity
to be added from 2008-09 to 2012-13, compared to 37 million tonnes (additional clinker capacity of 28 million
tonnes) added in the previous 5 years. This new capacity translates to 55-65 per cent of the existing cement
capacity in the country, the bulk of which are likely to get commissioned in 2009-10 and 2010-11. Most of the
additions are expected to come up in the South.
Figure 1: Demand-supply scenario in cement industry

(mn tonnes)
375
300
225
150
75
0
2008-09P
2009-10P
2010-11P
2011-12P
2012-13P
2003-04
2004-05
2005-06
2006-07
2007-08
Cement Capacity Cement Consumption
P: Projected
Note: Cement consumption includes large as well as mini cement plants.
Source: CRISIL Research
Cement prices to take a beating

Cement prices have been on an upward trajectory (CAGR of 11 per cent) over the last 5 years on the back of a
steady increase in clinker operating rates. However, the large capacity expansions are expected to weigh down on
price realisations starting 2009-10. Hence, CRISIL Research expects cement prices to fall by as much as Rs 15-20
per bag over the next 2 years (2009 and 2010) as operating rates dip.
CRISIL RESEARCH CEMENT ANNUAL REVIEW A-1

Margins under pressure
Cement companies, which were able to increase realisations at a much faster pace due to the robust operating
environment, will be able to only partially pass on input cost increases in 2008-09. In 2009-10 and 2010-11, when
large capacities are expected to come on-stream, pass through of input cost increases will be difficult. Therefore,
CRISIL Research expects cement companies to face margin pressures over the next 3 years.
Figure 2: Operating Margins on downward trend
35%
30%
25%
20%
15%
10%
5%
0%
2008-09P
2009-10P
2003-04
2004-05
2005-06
2006-07
2007-08
P: Projected
A-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Cement consumption to register a CAGR of 8 per cent over the next 5 years
CRISIL Research expects domestic cement consumption to register a CAGR of 8.0 per cent in the next 5 years,
which is marginally lower than the 8.2 per cent CAGR recorded in the previous corresponding period. Growth in
the northern and southern regions, although lower than the last 3 years, is expected to outpace the all-India
average. Cement consumption in the western region, which rose by 8.1 per cent (CAGR) over the last 5 years, is
likely to be sluggish in the subsequent 5 years on the back of the expected slowdown in residential and
commercial construction over the next 2-3 years.
Figure 1: Growth in cement consumption

(CAGR %)
12.0
9.8
10.0
8.9 9.0 9.2
8.1 8.2 8.0
7.7
8.0
6.6 6.8
6.1
6.0
5.2
4.0
2.0
0.0
2002-03 to 2007-08 2008-09 to 2012-13P
North East South West Central All-India
P: Projected
Box 1: Demand forecasting methodology
In the long term, growth in cement demand tends to exhibit correlation with the country's overall GDP growth.
Taking this into account, the methodology used in our study derives future cement demand by using the regression
model. In order to estimate cement demand accurately, cement-GDP relationship has been split into three
components.
G DP
G FCF
G FCF - Cons truc tion
Domes tic c ement c ons umption
First, GDP and gross fixed capital formation (GFCF) were regressed to arrive at the estimation for GFCF. This
was followed by an estimation of GFCF-construction by regressing the same with GFCF. On regressing GFCF-
construction with domestic cement consumption, it was observed that cement demand would increase at a CAGR
of 7.6 per cent over the next 5 years.

Chart 1: Region-wise key indicators
NORTH 2002-03 2007-08

Cement capacities 26.2 36.2
Cement production 24.1 36.2
Cement operating rates (%) 92% 100%
Blending Ratio 1.16 1.36
Cement Consumption 22.5 34.5
CENTRAL 2002-03 2007-08

CENTRAL
EAST
EAST 2002-03 2007-08
WEST Cement production 16.7 22.7

SOUTH 2002-03 2007-08

SOUTH Cement Consumption 32.2 51.3
ALL INDIA
WEST 2002-03 2007-08
2002-03 2007-08
Cement production 19.3 28.7 Cement capacities 139.0 175.7
Cement operating rates (%) 78% 96% Cement production 111.4 167.6
Note: All numbers are in million tonnes, except where stated.

Housing sector to be the key demand driver

The housing market has witnessed a boom in the last 5 years on the back of increasing affordability, change in the
demographic pattern, nuclearisation of families due to urbanisation and growing penetration of finance.
Housing, which accounts for 60-65 per cent of total cement consumption, is likely to grow at a healthy rate due to
rising income levels, migration trends and strong growth potential. We expect the total housing stock, estimated at
around 146 million units, to increase by 3 per cent (CAGR) from 2008 to 2012, i.e. the addition of around 4.6
million units, annually.
Table 1: Housing demand forecast

2008 2012
Estimated housing stock (million units) 146.3 164.7
Estimated floor space area (bn sq ft) 112.9 135.8

CRISIL Research has analysed the real estate market in Mumbai, Chennai, Delhi, Kolkata, Pune, Bengaluru,
Hyderabad and Kochi from 2008 to 2010. (For more details on CRISIL Research’s view on cities, please refer to
our special report - City Views.) Our estimations of the expected supply in the residential, commercial and retail
segments in these cities during the period suggests that around 10 per cent of the cement demand from the real
estate industry will come from these eight cities.
Higher interest rates and steep rise in real estate prices, risk to housing demand
In the last 5 years, lower interest rates coupled with increasing penetration of housing finance played a significant
role in boosting housing demand. However, in the last 1-2 years, while interest rates have risen, resulting in higher
EMI outgo, capital values of housing has also increased significantly across India. This has resulted in housing
becoming ‘unaffordable’ for a large section of potential buyers in the lower income category.
Infrastructure investments to continue to boost cement consumption

We believe that infrastructure investments, which comprise 20-22 per cent of total cement consumption, will
provide significant impetus for growth in cement consumption. Construction investments are expected to double
over the next 5 years, from Rs 4.7 trillion in 2002-03 to 2006-07 to Rs 9.2 trillion between 2006-07 and 2011-12.
Roads and power will continue to occupy a substantial share in infrastructure and industrial investments.
(For additional details, refer Construction Annual Review July 2008.)
Roads have been the largest beneficiary of the infrastructure boom as its intensity of construction is the highest
amongst all sectors taken into consideration. (The majority of investments are expected for the National Highway
Development Project.) Overall in the roads sector, CRISIL Research expects investments to the tune of Rs 2,446
billion over the next 5 years (2006-07 to 2011-12).
Other sectors such as power, ports, airports, railways and irrigation are expected to witness considerable
investments as well, thereby pushing up cement consumption.
Figure 2: Comparison of infrastructure investments - 2001-02 to 2006-07 and 2006-07 to 2011-12

(Rs in billion) (times)
4,000 14.0
3,500 12.0
11.7
3,000
10.0
2,500
8.0
2,000
6.0
1,500
4.5
4.0
1,000 3.2
2.0 2.1 2.0
500 1.7 1.8
1.2
0 0.0
Power Roads Telecom Railways Irrigation Urban infra Ports Airports
2001-02 to 2006-07 2006-07 to 2011-12 Growth multiple

Commercial construction to continue, albeit at a slower pace
The commercial construction segment can be divided into four parts - retail, office space, hotels, and other civil
structures such as hospitals, multiplexes and schools, all of which are registering strong growth that is translating
into healthy cement consumption. Also, CRISIL Research expects the IT and ITeS industries to register a CAGR
of 17.8 per cent and 22 per cent over the next 5 years, respectively, due to global cues. During the previous
corresponding period, the IT and ITeS industries rose at a CAGR of 33 per cent and 34 per cent, respectively.
The organised retail industry in India expanded at a healthy pace of over 28 per cent in 2006-07 on the back of the
influx of large domestic and international conglomerates looking to tap the local opportunity and capture market
share. Hence, the total organised retail market size, which was estimated at around Rs 679 billion in 2006-07, is
expected to increase to Rs 2,366 billion by 2012.
Industrial projects
With the Indian economy growing at an average of 8 per cent in last 3 years, demand from all end-user segments
has risen substantially. This has resulted in the majority of industries such as steel, cement, paper and
petrochemicals operating at high utilisation rates to meet demand. Consequently, all major players have
announced capacity expansion plans that are in various stages of implementation. Thus, industrial investments are
expected to surge nearly three-fold, from Rs 2,867 billion in 2002-03 to 2006-07 to Rs 7,841 billion between
2007-08 and 2011-12.
Northern region - real estate and infrastructure to drive demand

CRISIL Research expects cement consumption in the next 5 years (2007-08 to 2012-13) to mirror the growth
recorded in the previous corresponding period of 9 per cent (CAGR). The primary demand driver will continue to
be real estate construction activity in Delhi and Gurgaon. In addition, Delhi’s hosting of the 2010 Commonwealth
Games will drive cement demand as support infrastructure is put in place in the city. Urban infrastructure projects
such as the Delhi Metro Rail and road projects by Road Infrastructure Development Company of Rajasthan Ltd
(RIDCOR) as well as the Gems and Jewellery Park and Manesar IT SEZ in Haryana along with the upcoming
commercial complexes in Jaipur is expected to boost cement consumption in this region.
Figure 3: Cement consumption and production – North

(mn tonnes)
60
53.1 54.3
50
40 36.2
34.5
30
24.1
22.5
20
10
0
2002-03 2007-08 2012-13P
Consumption Production
P: Projected

North caters to a large portion of the cement demand from Uttar Pradesh
Since 2003-04, around 80 per cent of the cement produced in the North is consumed within the eight states that
form this region. Further, in comparison to the western, central and eastern regions, cement production is the
highest in the northern region. Therefore, around 20 per cent of the cement produced within the region is
despatched to states outside this region such Uttar Pradesh, Madhya Pradesh and Gujarat. Hence, there is no
export of cement from the region. CRISIL Research believes that this trend will continue with Himachal Pradesh
increasing its share of cement to northern Uttar Pradesh.
Chart 2: Net outbound movement (domestic) in the northern region in 2007-08
CENTRAL
EAST
WEST
SOUTH
(mn tonnes) 2002-03 2007-08

Cement sold to other regions 4.9 7.1
Cement despatches coming from other regions 1.9 3.9
Note: Figures in parenthesis are for 2002-03. Arrows refer to cement despatches from the southern region to
different states.
Eastern region dependent on industrial projects

CRISIL Research estimates cement consumption to increase at a CAGR of 6 per cent in the next 5 years (2007-08
to 2012-13). This is slower than the 7 per cent registered in the preceding 5 years (2002-03 to 2007-08). Although
substantial investments are scheduled to take place in this region - especially in the north eastern states - we
believe that cement offtake will slow down marginally as the cement consumption will primarily be driven by
industrial projects, which are not cement-intensive. Further, some of the large industrial projects that are expected
to come up in the region have been postponed due to various issues.

The key consumption centers are West Bengal, Orissa, Bihar and Chattisgarh, with West Bengal absorbing the
maximum quantum of cement. Also, for the next 2 years, residential and commercial real estate development in
the Kolkata metropolitan area is expected to at least maintain its current momentum.
Figure 4: Cement consumption and production – East

(mn tonnes)
40
35.8
35 31.6
30
26.0
25 22.7
20 18
16.7
15
10
0
2002-03 2007-08 2012-13P
P: Projected
Southern region - growth momentum to continue

CRISIL Research expects cement consumption to rise by 9 per cent (CAGR) over the next 5 years (2007-08 to
2012-13), which is identical to the growth registered in the previous 5 years (2002-03 to 2007-08). The key
demand drivers are residential, commercial and retail construction in the tier I and II cities in this region, irrigation
projects in Andhra Pradesh, the upcoming international airport in Chennai and the metro rail project in Bengaluru,
amongst others. Thus, the main consumption centers are Andhra Pradesh, Tamil Nadu and Karnataka.
Figure 5: Cement consumption and production – South

(mn tonnes)
90
79.7 81.3
80
70
60 53.6
51.3
50
40 33.4
32.2
30
20
10
0
2002-03 2007-08 2012-13P
P: Projected

Net outbound movement to decline marginally
In 2007-08, around 88 per cent of the cement produced in the southern region was consumed within the region.
CRISIL Research believes that this trend will continue and net outbound, as a per cent of production, will decline
from 11 per cent in 2007-08 to 9 per cent in 2012-13. Of the cement that is despatched, more than 90 per cent is to
Maharashtra, which was also the highest cement consuming state in the country in 2007-08.
Chart 3: Net outbound movement (domestic) in southern region in 2007-08
CENTRAL
EAST
WEST
SOUTH
(mn tonnes) 2002-03 2007-08

Cement sold to other regions 4.4 6.2
Cement despatches coming from other regions 0.3 0.8
Note: Figures in parenthesis are for 2002-03. Arrows refer to cement despatches from southern region to
different states.
Western region
CRISIL Research expects cement consumption to register a CAGR of 6.8 per cent in the next 5 years (2007-08 to
2012-13) as compared to 8.0 per cent in previous 5 years (2002-03 to 2007-08). We believe that the reason for the
tapering off in consumption is due to the expected slowdown in residential and commercial construction over the
next 2-3 years. Further, more than 90 per cent of cement exports from India is from the western region, bound
primarily for the Middle East. With the Middle East witnessing an increase in cement capacity, cement exports
from India, more particularly from the western region, is expected to decline, pulling down cement consumption
from the West in the near future.

Figure 6: Cement consumption and production – West
(mn tonnes)
60
50.1
50
38.7
40 36.1
28.7
30
24.5
19.3
20
10
0
2002-03 2007-08 2012-13P
P: Projected
Historically, the region consumes more than 80 per cent of the cement it produces. Further, amongst all the
regions, the West has predominantly been a cement-deficit region. Thus, cement despatches to this region is the
highest - Gujarat receives cement from Rajasthan and Maharashtra from Karnataka. However, going forward,
CRISIL Research believes that although around 90 per cent of cement produced within the region will be
consumed by Gujarat and Maharashtra, the net inbound shall be in the same range due to cost-efficiencies. (In
2007-08, around 60 per cent of cement despatched from Karnataka to Maharashtra was from plants near the
border.)
Central region - cement consumption to be sustained

CRISIL Research estimates cement consumption in the central region to increase at a CAGR of 6.1 per cent in
next 5 years (2007-08 to 2012-13) as against 5.2 per cent in previous 5 years (2002-03 to 2007-08). Cement
consumption in the region is primarily driven by housing and infrastructure projects in both states, i.e. Madhya
Pradesh and Uttar Pradesh. Projects such as Harsi Main Canal project in Gwalior, SEZs coming up in Noida like
the Greater Noida IT SEZ project and the 1,047-km Ganga Expressway are expected to boost cement
consumption in this region.

Figure 7: Cement consumption and production – Central
(mn tonnes)
35 33.0
31.7
30
26.3
24.5
25
19
20 17.8
15
10
0
2002-03 2007-08 2012-13P
P: Projected
Note
Cement consumption includes large as well as mini cement plants.

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Capacities in excess of 100 million tonnes to be added over the next 5 years
In the last 5 years (2003 to 2008), cement consumption in India rose at a CAGR of 8.2 per cent on the back of
increased real estate construction activity and infrastructure spends. During this period, cement capacity expanded
at a CAGR of 4.8 per cent, resulting in clinker operating rates moving up from 83 per cent in 2001-02 to 95 per
cent in 2007-08.
Figure 1: Incremental cement capacity and consumption

(mn tonnes)
140
120 114.7
100
79.3
80
65
60
45.7
40
20
0
Net cement capacities added Additional cement demand
2002-03 to 2007-08 2008-09 to 2012-13P
P: Projected
CRISIL Research expects 115 million tonnes (additional clinker capacity of 90 million tonnes) of capacity to be
added between 2008-09 and 2012-13, compared to 37 million tonnes (additional clinker capacity of 28 million
tonnes) added in the previous 5 years. This new capacity translates to 55-65 per cent of the country’s existing
cement capacity.
The bulk of capacity additions are likely to come up between 2009-10 and 2010-11, with the majority expected in
the South.
Large capacity additions to pull down operating rates

With the setting up of new cement capacities, CRISIL Research expects clinker operating rates to decline - clinker
operating rates, which were in the range of 85-95 per cent from 2003-04 to 2007-08, is expected to be in the
region of 75-80 per cent between 2009-10 and 2012-13. This dip in operating rates will impact cement prices.

Figure 2: Net cement capacity additions and clinker operating rates
(mn tonnes) (%)
45 100
40 95
35 90
85
30
80
25
75
20
70
15
65
10 60
5 55
0 2008-09P 50
2009-10P
2010-11P
2011-12P
2012-13P
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Cement capacity addition (mn tonnes) Utilisation rates (%)
P: Projected
Cement prices to decline by Rs 15-20 per bag in the next 2 years

Cement prices have been on an upward trajectory (CAGR of 11 per cent) during the last 5 years on the back of a
steady increase in clinker operating rates. However, the commissioning of large-scale capacities is expected to
dampen this beginning 2009-10. Hence, CRISIL Research expects cement prices to fall by as much as Rs 15-20
per bag over the next 2 years (2009 and 2010) over cement prices in 2007-08 as operating rates decline.
Figure 3: Clinker operating rates and cement prices
110 250
235
200
Clinker operating rates (%)
Prices (Rs per bag)
150
135
90
100
50
70 0
2002-03 2007-08 2012-13P
Clinker operating rates Prices
P: Projected
Based on our projected demand growth of 8 per cent for the next 5 years, the additional cement consumption will
be 80 million tonnes. Therefore, if operating rates are to be maintained, we believe that the industry requires 90
million tonnes of additional cement capacity. We are of the view that any additional cement capacity above 90
million tonnes will start exerting pressure on cement prices.

Lower capacity addition not to significantly alter situation
CRISIL Research has built scenarios wherein only 90 per cent or 80 per cent of base capacities come on-stream
and analysed their impact on clinker operating rates. Even if lower cement capacities get commissioned, clinker
operating rates, at best, will be in the range of 80-85 per cent from 2009-10 to 2012-13. (Our observation on
cement prices makes us believe that it tends to rise when clinker operating rates start breaching the 90 per cent
level.)
In a scenario where almost 20 per cent of cement capacities come on-stream, the South stands to benefit as over
one-third of the country’s capacity additions is expected in this region. Hence, lower capacity additions will
improve operating rates, consequently cushioning any steep fall in cement prices.
Figure 4: Clinker utilisation rates under different scenarios -all-India
95%
91%
87%
83%
`
79%
75%
2002-03 2004-05 2006-07 2008-09P 2010-11P 2012-13P
All-India expected clinker utilisation rates 90% of base capacities added

80% of base capacities added
P: Projected
AV Birla Group betting on northern markets

CRISIL Research expects cement capacities in the North to increase at a CAGR of 8.9 per cent over the next 5
years, with Grasim Industries the primary contributor to this augmentation. The company, which commissioned a
4.4-million-tonne brownfield cement plant in Shambhupura, Rajasthan, is setting up a 4.5-million-tonne
greenfield cement plant in Kotputhali, Rajasthan. The plant is expected to come on-stream in the third quarter of
2008-09. Following this, the share in capacity terms of large companies, except for Grasim Industries, will decline
marginally.

Figure 5: Company-wise capacity share in Figure 6: Company-wise capacity share in
northern region (2007-08) northern region (2012-13)
(per cent) (per cent)
ACC
ACC
13
14
Others
Others 32
31
Ambuja
Cements
Ambuja
15
Cements
18
Shree Cement
9
Grasim
9
Shree Cement
Grasim JK Synthetics
17
JK Synthetics 24 7
11
Source: CRISIL Research Source: CRISIL Research
The surge in cement consumption has also prompted other companies to set up cement plants in the limestone-rich
clusters of Rajasthan (Chanderia) and Himachal Pradesh - Rajasthan has the fourth largest cement-grade limestone
reserves, with total availability of 7,634 million tonnes (proven equivalent 4,763 million tonnes). Around 35 per
cent of the expected cement capacity in the North is likely to be set up in Himachal Pradesh. Southern-based
player, India Cement, has entered this region with the intention of setting up plants in Rajasthan and Himachal
Pradesh.
Northern market will be able to absorb the additional capacities

The northern market is likely to be the only area in India which will be able to absorb the additional cement
capacity that comes up in the region. As a result, clinker operating rates are expected to be in the range of 85-90
per cent over the next 5 years. However, cement prices are likely to fall more moderately in the northern region
than others.
Figure 7: North – Clinker operating rates and Figure 8: North – Net cement capacity
cement prices additions
102 250 8
100
200
98 6
Prices (Rs per bag)
million tonnes
150
96
94 4
100
92
50
90 2
88 0
2002-03 2007-08 2012-13P
0
2008-09P 2009-10P 2010-11P 2011-12P 2012-13P
P: Projected Source: CRISIL Research


Eastern region to be the worst-affected on account of capacity additions
CRISIL Research expects cement capacities to increase at a CAGR of 9.5 per cent over the next 5 years, while
cement consumption will grow at a much slower rate of 6.5 per cent. This is likely to further push down operating
rates to 65-70 per cent levels in the projected 5 years compared to 75-80 per cent recorded in the preceding 5
years.
More than 50 per cent of cement capacities coming up in the East are in Chattisgarh as the Bilaspur limestone
cluster is located in the state. Currently, most of the active production centers are also located within this state.
Amongst companies, in terms of installed cement capacity, Lafarge had the largest share in 2007-08, which we
believe will remain in 2012-13 as well.
Figure 9: East – Clinker operating rates and Figure 10: East – Net cement capacity
80 250 10
76 200 8
Prices (Rs per bag)
72 150
million tonnes
68 100
4
64 50
2
60 0
2002-03 2007-08 2012-13P
0
2008-09P 2009-10P 2010-11P 2011-12P 2012-13P

eastern region (2007-08) eastern region (2012-13)
ACC
ACC 11
17
Ambuja
Others Ambuja Cements
40 Cements Others 18
11 43
Ultratech
UltraTech
Cement
Cement
6
13
Lafarge
Lafarge
22
19

Southern region - maximum capacity additions
The South comprises three prime limestone clusters, and hence, around 35 per cent of India’s cement plant
expansions, both greenfield and brownfield, are coming up in this region. Of this, around 65 per cent of the
capacity is coming up in Andhra Pradesh. CRISIL Research, therefore, expects cement capacity in the South to
increase at a CAGR of 11.2 per cent over the next 5 years (2007-08 to 2012-13). This region is highly fragmented,
which we believe will remain in the near future.
The largest capacity additions are by UltraTech Cement and JK Cement – total in excess of 3 million tonnes.
Further, a large number of mini cement plants in this region such as Sagar Cements and Raghuram Cements are
expanding their capacities. Hence, the share of ‘others’ in the pie-chart below will increase from 51 per cent in
2007-08 to 57 per cent in 2012-13.
Therefore, although India Cement is increasing its capacity by 2.2 million tonnes in 2009-10, its share in terms of
capacity, in the South will decline from 16 per cent in 2007-08 to 12 per cent in 2012-13.
Meanwhile, cement consumption increased at a CAGR of 9.8 per cent over the last 5 years (2002-03 to 2007-08)
whereas capacity rose by only 4.6 per cent (CAGR). Hence, prices in the southern region rose the maximum - a
CAGR of 12 per cent - on the back of clinker operating rates moving up from a low of 80 per cent in 2002-03 to
95 per cent in 2007-08.
However, with large capacities planned in the South, CRISIL Research believes clinker operating rates will fall
back to 80 per cent by 2012-13, leading to a decline in cement prices.
Figure 13: South – Clinker operating rates and Figure 14: South – Net cement capacity
100 300 14
250 12
80
Operating rates (%)
Prices (Rs per bag)
200 10
60
million tonnes
8
150
40
6
100
20 4
50
2
0 0
2002-03 2007-08 2012-13P
0
2008-09P 2009-10P 2010-11P 2011-12P 2012-13P


southern region (2007-08) southern region (2012-13)
ACC ACC
10 10
India Cements
India Cements
12
16
Madras Cement
9
Others
51 Madras Cement
10 Grasim
Others
4
57
Grasim Dalmia
7 Cements
Dalmia
8
Cements
6
Western region - largest demand center in the country; to see decline in prices
CRISIL Research expects cement capacity to increase at a CAGR of 11.6 per cent over the next 5 years (2007-08
to 2012-13) as against a 3.8 per cent increase (CAGR) in the last 5 years (2002-03 to 2007-08). Cement
consumption, which has been robust, is expected to be in the range of 7.0 per cent in the subsequent 5 years.
Cement prices in the last 3 years rose at a CAGR of 19 per cent. However, given the expected demand-supply
scenario, CRISIL Research believes that prices are set to decline as clinker operating rates move down from 96
per cent in 2007-08 to 82 per cent in 2009-10.
Figure 17: West – Clinker oprating rates and Figure 18: West – Net cement capacity
100 250 10
200
85 8
Oparating rates (%)
Prices (Rs per bag)
million tonnes
150
6
70
100
4
55
50
2
40 0
2002-03 2007-08 2012-13P
0
Clinker operating rates Prices 2008-09P 2009-10P 2010-11P 2011-12P 2012-13P


Maximum capacity augmentation will take place in 2009-10 - to the tune of 7.9 million tonnes. Sanghi Cements is
setting up a 4.5-million-tonne greenfield plant in Lakhpat, Gujarat, which will be commissioned at the start of
2009-10. Binani Cement, a new entrant in this territory, is also expected to set up cement plants in Gujarat.
Though, this is likely to bring down UltraTech Cement’s share in capacity, the company will continue to retain its
leadership position in 2012-13.
western region (2007-08) western region (2012-13)
Ambuja
Others Ambuja Cements
20 Cements 17
23
Others
37
Century
Textiles
5
UltraTech
Cement
Grasim
20
9
UltraTech
Sanghi Cement Century
Cements 34 Textiles Sanghi
9 7 Grasim Cements
5 14
Central region to witness steep fall in operating rates

CRISIL Research expects cement capacity to increase at a CAGR of 10 per cent over the next 5 years (2007-08 to
2012-13). Birla Corporation Ltd is aggressively expanding in this region by augmenting its capacity to the tune of
4.8 million tonnes over the next 2 years. Hence, its market share, in terms of installed cement capacity, will
increase from 8 per cent in 2007-08 to 20 per cent in 2012-13.
Figure 21: Central – Clinker operating rates and Figure 22: Central – Net cement capacity
120 250 10
100
200
8
Operating rates (%)
Prices (Rs per bag)
80
150
million tonnes
6
60
100
40 4
50
20
2
0 0
2002-03 2007-08 2012-13P
0
Clinker operating rates Prices 2008-09P 2009-10P 2010-11P 2011-12P 2012-13P


Over the last 5 years, cement consumption rose at a CAGR of 5.2 per cent while net cement capacity increased at
a CAGR of 5.4 per cent. Hence, this tight demand-supply scenario led to the rise in prices - at a CAGR of 7.0 per
cent over the last 3 years. As the estimated installed cement capacity will surpass the expected consumption,
CRISIL Research believes that prices will decline. Thus, cement operating rates, which have moved from 91 per
cent levels in 2004-05 to around 95 per cent in 2007-08, are expected to contract to 70-75 per cent in the next 2
years.
central region (2007-08) central region (2012-13)
Jaypee Group
Others Jaypee Group
Others 19
28 26 26
ACC
17
ACC Grasim
Grasim 14 9
12
Century
Birla Corporation
Century Textiles Birla Textiles
8 Corporation 9
12
20
Blending to increase marginally

In the last 5 years, the blending ratio in the cement industry increased from 1.19 in 2002-03 to 1.32 in 2007-08.
CRISIL Research expects this to rise further to 1.37 in 2012-13. Cement producers opt for increased levels of
blending as it provides manufacturers the flexibility to contain costs during a down-cycle. Given that cement
consumption will increase at a CAGR of 8 per cent over the next 5 years, we believe that this incremental addition
in blending is likely to result in an additional supply of 8 million tonnes. Also, the proportion of blended cement is
expected to move from 74 per cent in 2007-08 to 80 per cent in 2012-13.
Figure 25: Product mix

(2007-08) (2012-13)
OPC
26 OPC
20
PBFS
8
PBFS
8
PPC PPC
66 72

The necessity to produce increased volume of blended cement is:
• Clinker substitution by cheaper material
• Freight reduction by split locating grinding capacity near blending sources
• Conservation of dwindling limestone reserves
• Cost savings in terms of power and fuel
Blending calculation
The potential blending is calculated after taking into account the projected cement production for 2012-13 and
forecasting the blending ratio. The blending ratio has been calculated after taking a view of the projected variety-
wise mix of cement and considering the industry benchmarks of the maximum blending possible on key varieties
of cement - portland pozzolona cement (PPC) and portland blast furnace slag cement (PBFSC) have been
considered for estimating the blending potential.
The OPC-PPC-PBFSC ratio (the variety-wise mix) 5 years hence was calculated after taking into account the
current mix and the availability of fly ash and slag. The blending ratio for 2012-13 was arrived at after taking into
account the variety-wise product mix and technical aspects relating to blending (which put a cap on the maximum
amount of fly ash/slag that can be blended with clinker).
Thus, the blending ratio calculated was analysed in the light of our projections of cement production in 2012-13 in
order to arrive at the maximum capacity addition possible through blending. The workings for the same are
summarised in the following table:
Table 1: Blending calculation

Projected production* - cement 2012-13 238 (a)
Projected blending ratio - 2012-13 1.37 (b)
Projected production - clinker 2012-13 173.4 (c=(a/b)
Existing blending ratio - 2007-08 1.32 d
Cement projection in 2012-13 at current blending 228.8 (e=(c*d))
Blending potential (mt) 8.7 ((a)-(e))
*Cement production is estimated on the basis of the consumption in 2012-13.
Fly ash
Fly ash, India’s primary source of pozzolana, is mainly derived from thermal power plants. In 2006-07, around 54
million tonnes of fly ash was generated, of which around 42 per cent was utilised by the cement industry. In the
near future, CRISIL Research expects around 43 million tonnes of fly ash to be added to the existing capacity.
Thus, we believe that utilisation at existing rates will continue and there will be no supply constraints of fly ash.
Slag
After fly ash, slag produced as a waste product by steel plants is the most popular blending material. Due to
source concentration, freight consideration dictates its geographic usage. Its usage is the highest in the eastern
region as cement plants are situated in the vicinity of steel plants. We believe that the maximum limit permitted by
the Bureau of Industrial Norms (BIS), i.e. 55 per cent can be mixed with clinker, shall be followed in the near
future as well.

Cement prices expected to soften on back of large capacity additions

Cement companies have planned capacity expansions to the tune of 115 million tonnes (clinker capacity of 90
million tonnes) over the next 5 years. This is in excess of the projected cement consumption in the country, which
is likely to increase at a CAGR of 8 per cent over this period. Hence, post expansions, CRISIL Research expects
operating rates to decline significantly, resulting in the softening of cement prices.
Figure 1: Cement capacity and consumption

(mn tonnes)
350
300
250
200
150
100
50
0
2008-09P
2009-10P
2010-11P
2011-12P
2012-13P
2003-04
2004-05
2005-06
2006-07
2007-08
Cement capacity Cement consumption
P: Projected
Note: Cement consumption includes large and mini cement plants.
Cement companies, which were able to increase realisations at a much faster pace due to the robust operating
environment, will be able to only partially pass on increases in input costs in 2008-09. In 2009-10 and 2010-11,
when large capacities are expected to come on-stream, pass through of input cost increases will be difficult.
Therefore, CRISIL Research expects cement companies to face margin pressures over the next 3 years.
Power and fuel costs to increase at a CAGR of 6 per cent over next 2 years
The energy cost of cement companies has risen sharply as landed cost of coal (used to fire the klin and generation
of captive power) has increased considerably in 2008-09. (After a gap of 3.5 years, state-owned Coal India Ltd
raised coal prices by 10-15 per cent.) Hence, CRISIL Research expects domestic coal prices to increase in excess
of 10 per cent during the year. Meanwhile, cement companies dependent on imported coal will witness a much
sharper appreciation in prices.
International non-coking coal prices (Newcastle, Australia), which rose by 44 per cent (y-o-y) in 2007, peaked at
$140 per tonne in June 2008 - a doubling of prices over a 1-year period. CRISIL Research expects prices to hover
in this range in 2008-09, and then decline by 10-15 per cent in 2009-10.

Based on the fuel mix and probable changes in this mix, we estimate power and fuel costs to increase by around
14 per cent (y-o-y) in 2008-09, and remain relatively stable in 2009-10.
Figure 2: Power cost v/s operating expenses Figure 3: Non-coking coal price movement
(Rs/ tonne)
(Rs/bag) (Rs/bag)
9,000
35 90
33 8,000
85
31 7,000
29 80 6,000
27
75 5,000
25
4,000
70
23
3,000
21 65
19 2,000
60
17 1,000
15 55 0
2003-04 2004-05 2005-06 2006-07 2007-08 2005 2006 2007 2008F 2009F
Power and fuel Operating expenses Domestic Imported
F: Forecast
Note: For further reference on coal, please refer to our Annual Review 2008 on the coal sector.
Freight costs to increase at a CAGR of 8 per cent over the next 2 years
Freight costs account for over 20 per cent of operating costs. With the average lead distance that cement travels in
excess of 500 kms, the share of road transportation is on a declining trend as cement companies prefer rail
wherever possible since the price differences per tonne kilometer is significant.
Based on the transportation mix of the cement industry, CRISIL Research believes that freight costs will increase
by 12 per cent (y-o-y) in 2008-09 and by 5 per cent in 2009-10.
Figure 4: Road freight v/s diesel prices

1.60 40.0
1.40 35.0
1.20 30.0
(Rs. per tonne/km)
1.00 25.0
((Rs/litre)
0.80 20.0
0.60 15.0
0.40 10.0
0.20 5.0
- 0.0
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Road Diesel prices
Notes
1) Diesel prices are average of Mumbai and Delhi.
2) For further reference, please refer to our Domestic Freight Transportation Services report.
Source: CRISIL Research, IOCL

Operating margins to be under pressure
In 2008-09, operating margins will come under pressure as operating costs will increase on the back of a surge in
coal prices and higher freight rates. Cement companies will be constrained in passing on these cost increases to
consumers on account of fresh cement capacities expected to get commissioned during this period. Further, the
government’s frequent intervention to restrict any hike in retail cement prices will cap any increase in realisations.
CRISIL Research therefore expects net realisations to fall by 2 per cent in 2008-09 and by 7 per cent in 2009-10
[due to the estimated 40 million tonnes of cement capacities (net) to be added during the year]. Consequently,
operating margins will be on a downward trajectory.
Table 1: Operating margins

(Rs/bag) 2004-05 2005-06 2006-07 2007-08 2008-09P 2009-10P
Net realisations (ex indirect taxes) 111 112 146 172 172 157
Distribution 17 19 23 29 32 34
Net sales realisations (ex excise and freight) 94 92 123 143 140 123
Operating expenditure 75 71 77 87 94 95
Raw material, stores etc 25 23 26 28 29 30
Power and fuel 32 31 31 34 38 38
Sales and marketing 4 3 4 5 6 6
Wages and salaries 6 5 6 7 7 7
Other manufatcuring expenses 5 5 6 7 7 8
Other expenses 4 4 4 6 6 6
Operating profits 19 22 46 56 47 28
Operating margins 17.1% 19.4% 31.3% 32.7% 27.0% 18.0%
P: Projected
Hike in interest rates to add to cement companies’ woes

With large capacity expansions planned, the rise in interest rates is expected to impact companies that have taken
significant recourse to debt financing. Adding to the woes of the cement companies will be the pressure on
operating margins, which will reduce cash accruals.

State of the industry July 2008
Sections
1.0 Industry characteristics B-1

- Industry B-1
- Cost elements B-2
2.0 Products and technology B-13
- Types of cement B-13
- Ready-mix concrete B-16
- Process B-17
- Plant and equipment B-18
- Types of RMC B-18
- Advantages of RMC B-18
- RMC market in India B-19
3.0 Cement manufacturing process B-21
- Raw materials B-21
- Process profile B-22
4.0 Region-wise scenario B-29
- North B-29
- South B-30
- East B-32
- West B-33
- Central region B-35
5.0 Player profile B-37
- Associated Cement Companies Ltd B-37
- Ambuja Cements Ltd B-39
- UltraTech Cement Ltd B-41
- Grasim Industries Ltd B-43
- Jaiprakash Associates Ltd B-45
- India Cements Ltd B-47
- Madras Cements Ltd B-49
- Shree Cement Ltd B-51
Charts
1.0 Industry characteristics

01 Cement – Factors influencing demand B-6
02 Cement – Factors affecting domestic supply B-9
3.0 Cement manufacturing process

01 Manufacturing process of mini-cement plants B-25
Continued…
CRISIL RESEARCH CEMENT ANNUAL REVIEW B-i

…continued
Figures

01 Industry structure B-1
02 Coal requirement vs coal allocation B-3
03 Consumption (region-wise) B-4
04 Infrastructure spending B-7
2.0 Products and technology

01 Variety-wise cement production B-16

01 Process profile B-23
4.0 Region-wise scenario

01 North – Market share (2007-08) B-29
02 North – Domestic market prices B-30
03 South – Market share (2007-08) B-31
04 South – Domestic market prices B-31
05 East – Market share (2007-08) B-32
06 East – Domestic market prices B-33
07 West – Market share (2007-08) B-34
08 West – Domestic market prices B-34
09 Central – Market share (2007-08) B-35
10 Central – Domestic market prices B-36
5.0 Player profile

01 ACC – Proportion of consumption by various states (2006-07) B-38
02 ACC – Market share and rank (2006-07) B-38
03 ACC – Break up as a per cent of sales (Mar-02) B-38
04 ACC – Break-up as a per cent of sales (Dec-07) B-38
05 GACL – Proportion of consumption by various states (2006-07) B-40
06 GACL – Mkt share and rank (2006-07) B-40
07 GACL – Break-up as a per cent of sales (Jun-02) B-40
08 GACL – Break-up as a per cent of sales (Dec-07) B-40
09 UltraTech Cement Ltd – Proportion of consumption by various states
(2006-07) B-42
10 UltraTech Cement Ltd – Market share & rank (2006-07) B-42
11 UltraTech Cement Ltd – Break-up as a per cent of sales (Mar-04) B-42
12 UltraTech Cement Ltd – Break-up as a per cent of sales (Mar-07) B-42
13 Grasim India Ltd – Proportion of consumption of varoius states B-44
14 Grasim India Ltd – Market share & rank (2005-06) B-44
15 Grasim India Ltd – Input costs as per cent of cost of sales (2001-02) B-44
16 Grasim India Ltd – Input costs as per cent of cost of sales (2006-07) B-44
17 Jaiprakash Associates Ltd – Proportion of consumption by various states
(2005-06) B-46
continued…
B-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

…continued
Figures
5.0 Player profile

18 Jaiprakash Associates Ltd – Market share & rank (2005-06) B-46
19 Jaiprakash Associates Ltd – Break-up as a per cent of sales (Mar-02) B-46
20 Jaiprakash Associates Ltd – Break-up as a per cent of sales (Mar-07) B-46
21 India Cements Ltd – Proportion of consumption (2006-07) B-48
22 India Cements Ltd – Market share & rank (2006-07) B-48
23 India Cements Ltd – Break-up as a per cent of sales (Mar-02) B-48
24 India Cements Ltd – Break-up as a per cent of sales (Mar-07) B-48
25 Madras Cement – Proportion of consumption by various states (2005-06) B-50
26 Madras Cement – Market share & rank (2005-06) B-50
27 Madras Cement – Break-up as a per cent of sales (Mar-02) B-50
28 Madras Cement – Break-up as a per cent of sales (Mar-07) B-50
29 Shree Cement – Proportion of consumption by various states (2006-07) B-52
30 Shree Cement – Market share & rank (2006-07) B-52
31 Shree Cement – Break-up as a per cent of sales (Mar-02) B-52
32 Shree Cement – Break-up as a per cent of sales (Mar-07) B-52
Tables

01 Industry Status B-2
02 Power and fuel requirement in cement manufacturing process B-2
03 Events during the period of government control B-10
04 Events during the period of partial de-control B-10
05 Events post de-control B-11

01 White cement – Capacity and production B-20

01 North – Capacity/ production/ operating rate B-29
02 South – Capacity/ production/ operating rate B-30
03 East – Capacity/ production/ operating rate B-32
04 West – Capacity/ production/ operating rate B-33
05 Central – Capacity/ production/ operating rate B-35
5.0 Player profile

01 ACC – As of December 31, 2007 B-37
02 ACC – Key financial indicators B-39
03 GACL – As of December 31, 2007 B-39
04 GACL – Key financial indicators B-41
05 UltraTech Cement Ltd – As of December 31, 2007 B-41
06 UltraTech Cement Ltd – Key financial indicators B-43
continued…
CRISIL RESEARCH CEMENT ANNUAL REVIEW B-iii

…continued
Tables
5.0 Player profile

07 Grasim India Ltd – As of December 31, 2007 B-43
08 Segment revenue – Cement business B-44
09 Grasim India Ltd – Key financial indicators B-45
10 Jaiprakash Associates Ltd – As of December 31, 2007 B-45
11 Segment revenue – Cement business B-46
12 Jaiprakash Associates Ltd – Key financial indicators B-47
13 India Cements Ltd – As of December 31, 2007 B-47
14 India Cements Ltd – Key financial indicators B-49
15 Madras Cement – As of December 31, 2007 B-49
16 Madras Cement – Key financial indicators B-51
17 Shree Cement – As of December 31, 2007 B-51
18 Shree Cement – Key financial indicators B-53
B-iv CRISIL RESEARCH CEMENT ANNUAL REVIEW

Industry
The Indian cement industry comprises 130 large cement plants with an installed capacity of 198.62 million tonnes
as on March 2008 and more than 365 mini cement plants constituting 6 million tonnes of effective capacity.
The industry can be broadly classified into three categories:
The first category consists of players having a pan India presence – Holcim-controlled ACC and Ambuja (36.8
million tonnes) and Aditya Birla-controlled Grasim, Century Textile and UltraTech (38.4 million tonnes). CRISIL
Research expects leadership to alternate between the two players as both are adding capacities through greenfield
and brownfield projects.
The second category comprises players whose presence is confined to one region and have a firm hold in their
respective markets. This segment includes players such as Lafarge (East), India Cement (South), Jaypee Group
(North and Central), Shree Cement (North), Birla Corp, Binani, Dalmia and Madras Cement amongst others. This
segment’s capacity is 63.9 million tonnes, which is approximately 36.4 per cent of the industry size. Several
players from this segment like Lafarge and Binani are planning to set up capacities outside their present region of
operations to expand their reach along with tapping opportunities present (in other regions) as well.
The third category consists of stand-alone players, which constitutes a combined capacity of 36.6 million tonnes.
Players such as CCI, J&K Cement and Panyam Cements fall into this category. These players are local players
who run the risk of getting marginalised.
Figure 1: Industry structure
(per cent)
Other players
Pan-India players
21
43
Regional players
36
Notes
1) Pan India players include the Holcim Group consisting of ACC and Ambuja Cements Ltd and
Aditya Birla Group comprising Grasim Industries, UltraTech and Century Textile.
2) Regional players include India Cement, Shree Cement, Madras Cement, Birla Corp, Lafarge, Binani Cement,
Jaypee Group etc.
3) Others include CCI, J&K Cement, Paynam Cement, Penna Cement, Mangalam Cement etc.
Source: CMA
CRISIL RESEARCH CEMENT ANNUAL REVIEW B-1

Table 1: Industry Status
Industry status No. of companies Share of capacity (million tonnes) % share of total capacity
1997-98 2002-03 2007-08 1997-98 2002-03 2007-08 1997-98 2002-03 2007-08
Large players (pan India) 4 4 2 31 63 75 32.5% 45.2% 42.8%
Regional players 12 12 14 22 43 64 23.2% 31.2% 36.4%
Standalone players 41 34 35 43 33 37 44.3% 23.6% 20.8%
Total 57 50 51 96 139 176 100.0% 100.0% 100.0%
Cost elements
There are four major costs associated with the production of cement:
1. Power and fuel costs
2. Raw material costs
3. Selling expenses
4. Other expenses
1. Power and fuel

The cement industry is power-intensive with power and fuel costs constituting approximately 30 per cent of the
cost of sale of cement, and hence has a major impact on the company’s operating expenditure. Coal is used to fire
the kiln and different varieties of fuel (diesel, coal, pet coke and lignite) is used to grind the clinker in the kiln.
The power requirements of cement plants vary according to the heat treatment process. The wet process requires
1,300-1,600 kilo calories (kcal) per kg of clinker and 110-115 kWh of power to manufacture 1 tonne of cement,
while the dry process requires only 750-950 kcal per kg of clinker and 120-125 kWh of power. Even though the
dry process utilises more electricity, the wet process consumes much more fuel and is more energy intensive than
the dry process.
Table 2: Power and fuel requirement in cement manufacturing process

Energy required in process Power required in klin
(kcal per kg of clinker) (kwh per tonne of cement)
Wet process 1,300-1,600 110-115
Dry process 750-950 120-125
While a large portion of the power requirement is met through state electricity boards, increasingly companies are
opting for captive power plants to reduce costs and dependence on state electricity boards where power cuts are
frequent. In 2006-07, 82.2 million tonnes of cement was produce using captive power plants, which works out to
be around 52.8 per cent of the total cement production.
B-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

The Indian cement industry primarily uses coal, pet coke and lignite for its fuel requirement. Apart from
depending on the receipts against linked quota, the cement industry has to rely on the open market as the
allocation is not sufficient to meet its coal requirement. The primary allocation of coal in India is to the power and
steel sectors with the cement industry receiving only 3.5 per cent of the total production.
Figure 2: Coal requirement vs coal allocation
(mn tonnes)
30
25
20
15
10
0
2001 2002 2003 2004 2005 2006 2007
Coal against linkages Coal required
Source: CMA
2. Raw material
The second major component in the production of cement is raw material costs, which primarily constitutes
limestone cost. Raw material accounts for 30-40 per cent of cost of sales. Cement plants are generally located near
limestone quarries, as limestone cannot be transported over long distances. Hence clinker plants are clustered
around 10 limestone deposits – Himachal, Saurashtra, Tiruchirapalli, Satna, Gulbarga, Chandrapur, Bilaspur,
Chanderia, Nalgonda and Yerraguntla. As on December 2007, there was around 105 million tonnes of capacity
around these clusters, which constitutes around 87 per cent of the industry size.
Apart from limestone, other raw materials used by the cement industry are fly ash, slag and gypsum.
3. Selling expenses
In the cement sector, the manufacturing facilities and end-user markets are at considerable distances from each
other, primarily because cement plants are located near limestone reserves. (Limestone reserves are confined to
certain regions and cannot be transported over long distance.) Hence, cement has to travel a considerable distance
to reach the end-users. And since cement is a low-value, high-volume commodity, transporting it to the end-user
accounts for a significant portion of the cost for cement manufacturers - it constitutes more than 10 per cent of
cost of sale of cement. There are three key modes of transportation used by the cement industry i.e. road, rail and
sea, with road and rail contributing more than 90 per cent of the despatches.
In order to control freight costs, companies strategically locate the clinker units closer to limestone reserves
whereas the grinding units are set up closer to consumption centres, primarily because transporting clinker is
cheaper than transporting cement, and blending material like fly ash or slag may not be available near the
limestone reserve.

Rail is the preferred mode of transport over long distances (over 500 kms) because of its lower cost. However, the
availability of wagons and the distance needs to be considered. The cement industry also benefits as cement is
classified as a priority commodity when it comes to transportation of cement. On the other hand, road
transportation is better for short distances and bulk transportation as it minimises secondary handling and
secondary freight costs.
The sea route is the cheapest mode of transportation, but only coastal players can take advantage of this mode as
they can transport clinker and cement more economically within the country as well as to other regions.
4. Other expenses
Other expenses include employee costs, administration expenses, and repair and maintenance charges amongst
others. These account for 15-20 per cent of the cost of sales.
Value chain
The industry’s supply chain primarily comprises raw material suppliers, cement manufacturers, distributors and
end-users. Typically, companies enter into agreements with respective state governments and coal companies to
source limestone, power and coal, respectively. The primary distributors in the supply chain are wholesalers (large
traders with a margin of Rs 1-2 per bag) and retailers (small traders with a margin of Rs 5-6 per bag).
Wholesalers-cum-retailers operate in small towns or rural areas.
Cement industry – regional in nature

Cement is a high-volume, low-value commodity. Transporting over long distances adds to the cost, resulting in
lower margins to the players. This makes cement a regional commodity where lower distribution cost makes it
remunerative to producers. Cement consumption varies region-wise because the demand-supply balance, per
capita income and level of industrial development differ in each state and region.
In 2006-07, the South accounted for the largest share of consumption (44.0 per cent) followed by the North (29.9
per cent), West (28.7 per cent), East (24.0 per cent) and the central region (22.4 per cent).
Figure 3: Consumption (region-wise)
(mn tonnes)
50
45
40
35
30
25
20
15
10
5
0
2002-03 2003-04 2004-05 2005-06 2006-07
North East South West Central
Source: CMA

Seasonality of demand and cyclicality of the industry
Cement demand is seasonal with demand declining during the monsoons due to a slowdown in construction
activity. The monsoons extend from June to September across India (except in parts of Tamil Nadu and Kerala,
where the monsoon extends from November to January). Consequently, demand is at its nadir during the July-
September quarter and highest during the January-March quarter. Demand peaks in March and is at a trough in
August.
In addition, the cement industry, like most capital-intensive commodity industries, is cyclical in nature with
respect to supply. Given the high gestation period of 24-30 months, there is a time lag between capacity build-up
and cement demand. Demand for cement is linked to economic growth. Hence, when the economy is strong,
demand increases. As a result, the profitability of players rises, leading to capacity additions by existing players
and the entry of new players. However, since it takes 2 -2.5 years to build a cement plant, it is likely that before
completion, demand could decrease or stagnate, or the capacity additions could exceed demand. This can lead to a
fall in cement prices, and the industry could face a downturn, leading to players reducing operating rates or
shutting down capacities.
Demand dynamics
Cement demand is closely linked to the growth of the construction sector. (A regression analysis of cement
demand and investments in the construction sector shows a high correlation of 0.99 and moderate elasticity of
0.55.). Consequently, cement demand has posted a healthy growth rate of around 8.34 per cent since 1996-97 till
2007-08, propelled by the increased focus on infrastructure development, and higher demand from the housing
sector and industrial projects.

Chart 1: Cement – Factors influencing demand
Domestic supply
Cement availability Customs duty
Global
Imports International prices
demand-supply
Exchange rate
Urban income
Per capita income
Rural income Agricultural output
Offtake from the
housing sector (1)
Estimated housing
Government outlay
shortage
Cement Segmentwise
demand offtake
Access to finance Housing finance schemes
Offtake from corporate projects

Govt regulations Land
other than
such as ULCRA availability
housing/infrastructure (2)
Government offtake from

infrastructure projects. This
includes bridges, wells, dams,
other public works,
concretisation of roads, ports
Access to
and railways (3)
capital
FDI/govt policy
Offtake from private
regarding privatisation
infrastructure projects. This
includes roads, ports
and power (4)
Internal accruals
Other offtake, such as

commercial structures (5) Capital market
Disbursement
policy of financial
Seasonality institutions
Credit availability
Repair work
Funding from
(1, 2, 3, 4, 5)
overseas markets
FDI: Foreign direct investment; Govt: Government; ULCRA: Urban Land Ceiling Regulation Act
Note
Cement availability is equal to cement supply plus imports less exports.

Demand drivers
Cement demand is primarily derived from housing (60-65 per cent), infrastructure (20-25 per cent), commercial
construction (10-15 per cent) and industrial segments (5-10 per cent). Demand has grown at a healthy pace of over
8.5 per cent (CAGR) during the last 5 years on the back of strong demand registered in its end-user segments.
Housing
Housing accounts for a major portion of total domestic cement demand - approximately 60-65 per cent. Housing
activity has remained buoyant during the past few years due to the government’s favourable housing policies such
as tax incentives and higher plan allocation. The growing middle class along with rising income levels
significantly contributed towards the growth in the housing segment.
Infrastructure
Increased government focus on infrastructure development is expected to further propel cement demand, as more
infrastructure development is required to sustain a GDP growth rate of above 7.5 per cent. The allocation towards
development has increased over the years, leading to higher demand for cement.
Figure 4: Infrastructure spending

(Rs bn)
2,500
2,000
1,500
1,000
500
-
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Power Roads Telecom Airports Irrigation Ports Railways Urban infrastructure
Commercial construction
The commercial construction sector can be divided into retail, office space, hotels and other civil structures such
as hospitals, multiplexes and schools amongst others, all of which are witnessing strong growth. This directly
translates into healthy cement demand.
The organised retail industry in India grew at a healthy pace of over 28 per cent in 2006-07 on the back of the
influx of large domestic and international conglomerates looking to tap the retail opportunity and capture a larger
market share. The size of the total organised retail market was estimated at around Rs 679 billion in 2006-07,
which is expected to increase at a healthy pace.

Also, with India emerging as an important back-office destination, large global companies are setting up facilities
in the country. Construction of commercial complexes and office spaces have increased in most large cities such
as Mumbai, the national capital region (NCR), Chennai, Bangalore, Pune and Hyderabad. In the IT and ITES
space as well; there are sizeable investments being made by domestic and global IT companies, which is
contributing to the growth in construction activity, and thereby, increasing the offtake of cement.
Industrial investments
The strong growth in India has resulted in operating rates peaking in industries such as steel, aluminium, textiles
and petrochemicals. These industries have announced expansion projects to address growing demand, which are at
advance stages of implementation, leading to higher intake of cement.
End-users
The main purchasers of cement are the government, institutional buyers and retail buyers.
Government
The government obtains cement at competitive prices due to its purchase process. The government buys cement
through two routes - direct tenders or purchase through the Director General of Supplies and Disposals
(DGSAND). The DGSAND receives cement rates from various cement companies, selects the vendor, and
distributes it amongst government agencies registered with DGSAND. The government gets 60 per cent of its
total requirement through the direct tendering process and the remaining 40 per cent through DGSAND.
Institutional buyers (other than the government)

Institutional buyers like builders buy cement from either cement companies or wholesalers. Bulk purchases are Rs
10-15 lower per bag than retail purchases. Typically, the civil engineers and contractors decide on the variety and
brand of cement to be purchased.
Retail buyers
Retail buyers include the housing segment, which procures from retailers as they have low requirements.
Consequently, retail buyers have less pricing flexibility than institutional buyers. In the case of retail buyers, the
mason decides the variety and brand of cement to be purchased.

Chart 2: Cement – Factors affecting domestic supply
Technology
Maintenance related
Operating rates
shut-downs
Producer efforts to
Supply from existing rationalise supplies
large/mini cement units
Aggregate installed
capacity
Operative installed
capacity
Non-operational capacity
Domestic Domestic demand-

supply supply
Capacity added
Availability of finance
Supply from
additions
(new/expansions) Operating rate
(new units are capable of operating at 75 per
cent, 80 per cent and 100 per cent during the first
3 years of operation)
Seasonality
Demand-supply in the
Cement/clinker export destination
exports
Facilities, such as
ships/captive jetties
Demand-supply of
International
cement exporting
cement/clinker prices
Landed cost of countries
imports
Exchange rate
Cement imports Domestic prices

Customs duty
Port handling facility
Supply in the cement industry is influenced by factors such as demand growth and the level of consolidation in the
region. Currently, the industry’s capacity utilisation has been at around 95 per cent, thus indicating strong
demand.

Brief on the cement industry
Evolution of the cement industry
The cement industry is a core sector and one of the keys for the country’s growth. (Cement is one of the most
basic construction materials, and hence, an essential item for the infrastructure development.)
Cement production commenced in India as early as 1914. The first cement unit was set up at Porbandar in 1914
with a capacity of 1,000 tonnes per annum. The industry’s installed capacity as of March 2008 was 198 million
tonnes.
The growth of the cement industry, however, has been uneven with the majority of capacity additions taking place
only during the last decade. Government regulations stunted the growth of the industry - in the past, the
government regulated the industry through licencing, price and distribution controls. The removal of these
controls resulted in rapid progress in terms of new capacity creation and higher production, which saw the country
move from cement scarcity to a surplus position. India currently ranks as the second largest cement producer in
the world.
The evolution of the cement industry in India can be broadly classified into three periods - the period up to partial
de-control (up to 1982), the period up to total de-control (1982-89) and the period after total de-control (after 1989
to date).
The following table summarises the events in the cement industry:
Table 3: Events during the period of government control

Period Events
1942 Free on rail (FOR) destination price of cement fixed on a cost-plus basis.
1946-1952 Cost of production of ACC used as a basis for fixing cement prices. Freight
equalisation system introduced simultaneously.
1958 Introduction of three tier retention price scheme, whereby retention prices are
decided based on the age of the plant and technology employed.
Jan-66 Price and distribution controls lifted.
Jan-68 Price and distribution controls re-imposed.
Apr 1969 - May 1979 Period of single price regime; total distribution control.
Cement industry grew at around 4.0 per cent during this period as against the
high growth rates in the past.
Sep-77 Government guarantees 12 per cent post-tax return on the net worth of new
cement companies.
Table 4: Events during the period of partial de-control

Period Events
Feb-82 Companies allowed to sell 33 per cent of their production in the open market,
while price and distribution controls enforced for the remaining production.
1985-86 Proportion of cement for free market sale increased to 50 per cent.

Table 5: Events post de-control
Period Events
Mar-89 Price and distribution controls removed completely.
Jul-91 Industrial licencing abolished for new capacities.
Apr-08 Government banned cement exports.
Jun-08 Ban on the cement exports partially lifted and the exports
from the Gujarat ports are allowed.

Types of cement
Cement is classified into various categories based on its composition and specific end-uses. Primarily cement is
classified into portland, blended and speciality cement.
Portland cement
Portland cement is the most common type of cement in general usage, as it is a basic ingredient of concrete. A
mixture of limestone and clay is ground and burnt at a very high temperature to form clinker. The clinker is
ground to a fine powder with the addition of gypsum (up to 5 per cent) to form portland cement. The essential
components of portland cement are lime, silica, alumina and iron oxide.
There are different types of portland cement, which differ based on their chemical composition; however, the
manufacturing process remains the same. Portland cement consists of tricalcium silicate or C3S, dicalcium silicate
or C2S, tricalcium aluminate or C3A, and tetracalcium aluminoferrite or C4AF. [C = CaO - calcium oxide (calcia),
S = SiO2 - silicon dioxide (silica), A = Al2O3 - aluminium oxide (alumina), F = Fe2O3 - iron oxide (ferric oxide)].
The varying proportion of these constituents imparts diverse properties to the different types of portland cement.
Ordinary portland cement

In ordinary portland cement (OPC), C2S accounts for 20-60 per cent of the total composition, C3S 20-60 per cent,
C3A 0-16 per cent and C4AF 1-16 per cent.
Although OPC is suitable for all types of civil engineering works, it cannot be used for mass concrete work like
multi-storeyed buildings.
Moderate heat portland cement

OPC, when mixed with water and allowed to hydrate, generates a considerable amount of heat, which is not
suitable for mass concrete work. However, the heat generated during hydration can be lowered by altering the
chemical composition of the cement. Such cement is called moderate heat portland cement (MHPC). This cement
is more resistant to sulphate as compared with OPC.
Rapid hardening cement

Rapid hardening cement (RHC) is a special-purpose cement used for urgent repairs (like airport runway repairs).
RHC or high early strength cement develops compressive strength within 24 hours, as compared with 28 days in
the case of OPC. The average particle size is smaller in this cement due to which it gains strength more quickly
than ordinary cement. It generates more heat in the early stages and can be useful in cold weather concreting.
However, its principal use is in manufacturing pre-cast concrete units where the high early strength of the concrete
permits quick re-use of moulds and formwork.

Sulphate-resistant cement
The compressive strength of concrete, which is made using OPC, MHPC and RHC, deteriorates on account of
continued contact with soil and water, which are rich in sulphates.
Sulphate-resistant cement (SRC) is a type of portland cement, which contains less than 5 per cent tricalcium
aluminate (C3A). It is used for marine construction or in places that are rich in sulphates.
Oil well cement

Oil wells are drilled at depths of 500 metres or more. After the drilling operation, the wells are lined with an
annulus made of cement concrete. Since the temperature at these depths is over 1,000 degree Celsius (0C), if
portland cement grout is pumped into the well, it would set instantly and obstruct the 'cementation' or setting
process. Hence, the cement used for lining oil wells should be able to withstand setting time by up to 40-120
minutes, and thereafter, set within 24 hours. In addition, it should have a strength of over 100 kg per cm2. In oil
well cement (OWC), the percentage of tricalcium aluminate (C3A) is reduced to less than 3 per cent of its total
composition in order to control/modify the setting time. In India, according to the Bureau of Industrial Standards
(BIS), there are nine types of OWC, depending on the type of construction and the specific application.
White cement
White cement is portland cement made from specially selected raw materials, usually pure chalk and white clay
(kaolin), containing very small quantities of iron oxides and manganese oxides. The chemical complexes formed
with iron oxide present in the cement raw meal give OPC cement its grey colour. However, if the proportion of
iron oxide is reduced to less than 0.4 per cent, cement becomes white in colour. Iron oxide improves the burning
of raw meal; however, it is difficult to burn the raw meal for white cement, on account of the low content of iron
oxide. As white cement has all the physical properties of OPC, it can be used in all types of construction where
OPC is used; however, its usage is limited, as it is more expensive than OPC.
Blended cement
In order to produce blended cement, certain natural or man-made compounds such as pozzolona, slag and
sandstone are mixed with portland cement clinker and ground finely. Blended cement is more suitable for certain
applications as compared to portland cement.
Blended cement is also called low-heat cement as it generates lesser heat during hydration compared with OPC.
This cement is used for large concrete works such as dams and piers. Blended cement minimises the risk of
developing contraction cracks on account of the lower heat of hydration.
Portland blast furnace slag cement

Blast furnace slag (a waste product of the pig iron furnace) can be used to produce slag cement. However, blast
furnace slag does not have cementitious properties if it is cooled slowly and ground finely; hence, it is cooled
quickly or quenched and subsequently ground to acquire cementitious properties. The quenching process is called
'granulation', and the slag is known as granulated blast furnace slag.

Granulated blast furnace slag is mixed with lime or OPC clinker and ground to form slag cement. Portland blast
furnace slag cement (PBFSC) is the most widely used slag cement, and contains 25-65 per cent of slag, 5-6 per
cent of gypsum and Portland cement clinker. Apart from having OPC properties, PBFSC has other properties such
as lower heat of hydration and higher sulphate resistance.
Super sulphate cement, another type of slag cement, is prepared by grinding granulated slag, anhydrite and clinker
in the proportion of 70:15:15. This cement is more sulphate-resistant than PBFSC or SRC.
Portland pozzolona cement

Pozzolona is a clay (natural or synthetic), which when ground with lime/clinker and mixed with water, produces
cementitious compounds. Highly reactive pozzolona or fly ash is mixed with Portland cement clinker and ground
with 5-6 per cent gypsum to form Portland pozzolona cement (PPC). PPC contains up to 25 per cent pozzolona or
fly ash. It has a lower heat of hydration as compared with OPC, and is also relatively more resistant to sulphates.
As a standard, fly ash can be used to the extent of 15-35 per cent.
It has the physical properties of OPC, and hence, can be used for all types of construction work for which OPC is
used. However, in PPC the shrinkage is lesser as compared with OPC.
Masonry cement
Most varieties of cement when mixed with sand and water get converted into mortar, which is coarse and not
water retentive. Masonry cement is a more plastic mortar and is used for masonry work such as laying, binding
and plastering bricks. Portland clinker is ground with limestone, sandstone or granulated slag in the proportion of
1:1 to produce masonry cement. Some quantities of hydrated lime and/or a plasticiser are added to impart higher
plasticity.
Speciality cement
Speciality cement has several special properties and is used in specific applications.
Expansive cement/shrinkage compensated cement

Concrete prepared from portland cement or blended cement shrinks on setting and hardening. Cement should
expand on setting and hardening when it is used for pre-stressed, pre-fabricated concrete products and as a grout
for filling cracks. This cement is prepared by increasing the proportion of gypsum and aluminous cement clinker
to Portland cement clinker while grinding.
Super high strength cement

This type of cement is required for urgent repairs of important concrete structures like foundation pillars. It is
prepared in jet mills by finely grinding portland cement clinker with a higher proportion of tricalcium silicate. The
tricalcium silicate content is around 60 per cent of the clinker and its fineness should be at least 600 kg per cm2.

Alinite cement
A special low-energy cement process has been developed to manufacture cement, in which over 5 per cent
calcium chloride is added to the raw meal while grinding. As the burning point of raw meal is lowered
significantly, less fuel is required for burning. The calcium chloride is vapourised and condensed in the kiln dust,
which is re-circulated. A part of the chloride gets attached to the clinker components and increases its compressive
strength.
This process is still in the development stage. However, it would be viable if sufficient by-product waste and
calcium chloride is available at low cost.
Product mix
The product mix in the cement industry has changed significantly over the last 5 years. While OPC accounted for
a major portion of the cement production, recently cement producers have shifted to higher production of blended
cement. The following graph shows the share of various types of cement in the overall production in 2006-07 vis-
à-vis 2002-03.
Figure 1: Variety-wise cement production

As on March 2002-03 As on March 2006-07
PBFS
PBFS
8
10
OPC
31
OPC
51
PPC
39
PPC
61
The proportion of blended cement has risen from 49 per cent in 2002-03 to 69 per cent in 2006-07, primarily due
to better margins offered in PPC, growing acceptability in the market and less pressure on the natural reserves of
limestone.
Ready-mix concrete
Introduction
Ready-mix concrete (RMC) is a mixture of cement, aggregate, water and other ingredients, which are weighed
and batched at a centrally located plant and directly placed at the construction site without undergoing any further
treatment. The operations are carried in factory-like conditions and are completely automated. Hence, RMC is a
value-added, semi-finished product and results in superior quality concrete.

RMC is used extensively in many countries such as the US, Australia, New Zealand and England, where 70-95
per cent of all the concrete comes from central batch plants. In India, a few large projects have operated RMC
plants for several years. However, the first commercial RMC plant was set up in 1992 at Pune.
Demand
The main factors that could influence domestic demand for RMC include:
• Consumer (contractors and engineers) education by RMC suppliers.
• Competitive pricing of RMC could lead to higher offtake if the price difference between RMC and site mixed
concrete (SMC) is reduced.
• Emergence of high cement consuming centres around metro cities.
• Increasing quality consciousness of the user segment.
• Entry of multinational construction agencies and foreign consultants.
• Entry of private players in infrastructure projects. (RMC demand from sub-contractors is likely to improve if
the government sub-contracts infrastructural construction projects on a turnkey basis to contractors who are
responsible for material supplies.)
• Increased supply of the product would result in higher offtake. At present, there are very few RMC suppliers
in India.
Reasons for the slow growth in RMC consumption

The initial controls on cement pricing and distribution hindered the RMC business, owing to the shortage of
cement. (Cement is an important component of RMC.) Apart from having easy access to cement, RMC also
requires technical competence to manufacture the concrete (to ensure mixes with the desired properties).
Presently, the usage of RMC is restricted because of its higher price vis-à-vis SMC and the inadequate facilities at
construction sites to utilise RMC effectively. Also, in India, labour is less expensive as compared with RMC; as a
result, most medium and small-scale builders opt for SMC. Logistics is another hurdle for RMC as it is difficult
for RMC trucks to pave through small and narrow roads where the building is being constructed. These agitator
trucks being bulky, occupy a large part of the road, causing traffic bottlenecks. This apart, the additional taxes on
RMC prove to be an impediment.
Also, new marketing initiatives need to be undertaken because either users are unaware of the product or are not
convinced of its benefits. This is important, as RMC supply should match potential demand. If supply is less than
demand, then the potential business is lost. However, if supply exceeds demand, the per unit cost of concrete
increases due to idle capacity. Moreover, RMC is considered economically viable only if it is sold within a radius
of 30-40 km from the plant. If the distance between the plant and construction site is more, the wet concrete would
harden in the mixer itself.
The only positive development has been the mandatory usage of RMC in time-bound projects.
Process
Cement is stored in silos, and aggregates (sand and stone chips) are stored in stockpiles or hoppers. These are then
transported to an elevated tower for batching. The batched materials are then fed into the mixer, where they are
mixed at a regulated speed, in order to obtain the concrete mix of the desired quality.

Plant and equipment
A typical RMC facility includes a central batching and mixing plant, revolving transit mixers, and concrete pumps
and conveyors.
The following operations are carried out at the central batching and mixing plant:
• Storage of materials
• Weighing as per the required proportion mix
• Discharging the weighed materials to the mixer
• Mixing
Batching and control operations are completely automated. A batching and mixing plant can store around 100
mixes. (A mix is a particular proportion of cement and aggregate.)
The revolving transit mixer could be a truck mixer or truck agitator, which is used to transport RMC to the
construction site. The mixer continuously agitates the mix to prevent early stiffening. Concrete pumps and
conveyors are used to pump concrete at the construction site.
The daily output of a RMC plant is not directly dependent on the capacity of the batching unit, instead, it is
influenced by the per truck capacity, number of trucks and the daily number of trips. The daily number of trips is
determined by the transport time, which depends on the distance between the RMC plant and construction site,
transportation bottlenecks and road conditions. Typically, three round trips are undertaken daily.
Types of RMC
There are two types of RMC
• Central mixed RMC: The mixing is done at the central plant. The mixed concrete is transported in an agitator
truck, which revolves slowly, in order to prevent segregation and early stiffening of the mix. In the majority
of developed countries, 70-95 per cent of all concrete comes from central batch plants.
• Transit mixed RMC: The materials are batched at a central plant. However, they are mixed in a mixer truck, at
the site, or mixed immediately before the concrete is discharged.
Advantages of RMC
RMC offers certain advantages over SMC:
• Quality control: RMC ensures quality (in terms of strength, durability and performance), as all the
constituents are weighed in the required proportions and mixed at the RMC unit. This is especially useful for
projects that require high quality control. Moreover, the quantity of additives (fly ash, plasticisers and
retarders) can be monitored in order to ensure superior quality of the cement.
• Faster speed of construction: This is due to the continuous mechanised operations, which is especially
important for large, time-bound construction projects.
• Eco-friendly: RMC is considered to be a 'clean product' due to the absence of used cement bags and dust at
the construction site.
• Convenience for congested sites: RMC eliminates the need to stockpile raw materials required to make
concrete at the project site.
• Lower wastage: Cement wastage is minimised due to bulk handling and storage.

• Simplifies procurement and storage of raw materials: The user is relieved of logistics of supply and storage of
multiple raw materials at the site.
• Reduces manpower requirements: Manpower expenses are reduced due to lower labour and supervisory
requirements.
• Range of concrete grades: The RMC plant has the flexibility to manufacture a wide range of concrete due to
computerised batching process.
• Correct proportions of ingredients: Computerised batching operations result in accurate proportions for the
various raw materials.
RMC market in India

RMC is still in at a nascent stage in India, as only 5-10 per cent of cement production is converted into RMC, as
against 70 per cent in developed countries.
Reportedly, the growth of RMC is predominantly driven by the metro cities. Bangalore is the largest market for
RMC owing to the several construction activities in the city (IT campuses, flyovers and government sponsored
infrastructure projects). Bangalore continues to lead in the consumption of RMC in the country. The high
consumption in Bangalore has led cement majors like ACC Ltd, Ready Mix (India) Ltd, Grasim Industries and
L&T Concrete to set up RMC plants in the city.
Essential requirements to set up a new plant

• Adequate water supply at the plant’s site. If potable water is not available in and around the location of the
plant, water has to be transported from distant locations, thereby further pushing up costs.
• Concrete consumption around the site, as the concrete has to be transported.
Players
As on March 31, 2007, the large players in the domestic RMC market were L&T Concrete, RMC Readymix
(India) Pvt Ltd, Grasim Industries and ACC Ltd with a market share of 29, 15, 13 and 8 per cent, respectively.
These players account for around 65 per cent of the total market share in India.
In May 2008, Lafarge bought out L&T Concrete for Rs 14 billion. Lafarge would be buying out 58 concrete
plants of L&T Concrete, which have an estimated volume of 4.1 million metric cubic capacity. Earlier in the year,
Lafarge started its first RMC operations in Raipur, Chattisgarh.
White cement
Introduction
White cement has all the physical properties of OPC (is also called grey cement), and can be substituted for OPC.
However, its use is limited to tiles and flooring, as it is more expensive.
White cement is produced under a fixed manufacturing process, with smaller quantities of iron and manganese.
Although white cement and grey cement have similar physical properties, they cannot be produced in the same
plant.

OPC is grey in colour due to the chemical complexes formed with iron oxide present in the cement raw meal.
Moreover, haematite, bauxite and limestone are heated using coal, which gives cement its dark colour. When the
proportion of iron oxide in cement is reduced to less than 0.4 per cent, cement turns white in colour. Thus, the use
of haematite is minimised for manufacturing white cement, and it is replaced by pure silica or sand. Also, the
clinker for white cement is burnt using fuel oil instead of coal. Special cooling techniques are also used to
manufacture white cement.
White cement in India

In India, white cement is primarily used as filler between ceramic tiles or for decorative purposes. For cement to
retain its whiteness, the ash content in coal has to be minimal. However, as the ash content of domestic coal is
high, gas or oil is used as a fuel to manufacture white cement. The white cement market in India is small as it is
nearly three-times expensive than grey cement. White cement is expensive because the usage of pure silica adds to
the production cost. This apart, freight costs are higher owing to limited supply and spread-out markets. The
excise duty on an ad valorem basis and higher temperature (requiring more oil) further adds to production costs.
Players
Grasim and JK Synthetics are the two major players in the white cement market. Grasim's white cement plant at
Khangar, Rajasthan is the largest cement plant in India. The plant’s total installed capacity of white cement is 1.1
million tonnes.
Table 1: White cement – Capacity and production

Grasim 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Installed capacity 000 tonnes 400 400 400 400 475 475 475
Production 000 tonnes 252 268 310 311 315 350 365
Capacity utilisation % per cent 63 67 78 78 66 74 77
Travancore 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Installed capacity 000 tonnes 30 30 30 30 30 30 n.a.
Production 000 tonnes 30 19 22 27 23 24 n.a.
Capacity utilisation % per cent 100 65 75 90 77 80 n.a.
JK Cement 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Installed capacity 000 tonnes 300 300 300 300 300 350 400
Production 000 tonnes 186 184 200 216 124 227 249
Capacity utilisation % per cent 62 61 67 72 41 65 62
n.a.: Not available

Raw materials
The essential raw materials to manufacture cement is limestone or chalk, which is used for producing clinker.
Clinker, the intermediate product, is the key ingredient of cement and is a raw material for manufacturing cement
with additives such as bauxite, iron ore and gypsum. Depending on the grade of the limestone, additives such as
silica, alumina and iron ore are added to achieve the product’s quality. The required grade, constituting lime,
should be 40-41 per cent in the limestone, and accordingly the additives are added.
Fuels like coal, pet coke, natural gas, lignite or oil can be used. The industry has even begun considering the usage
of alternate fuels such as agro wastes, waste oils, animal meal and rice husk owing to the shortage of fuel like coal
and rising fuel prices. The choice of fuel depends on its availability, cost, the efficiency level and process
employed.
The general process of manufacturing cement from mining limestone from the quarry to the final product is as
follows:
Limestone benching, drilling and blasting
To make cement, it is necessary to have the required minimum constituents in limestone. For that the company
takes a sample of the limestone at various levels in the form of steps, which are called benches and determines the
quality assurance, as quality varies, and compares it with the standard required. This is called limestone benching.
Limestone benching is done so that additives can be added accordingly for giving the basic characteristics.
Once the limestone is benched, it is drilled and broken into small pieces. This is known as blasting. Blasting is of
two types – primary blasting and secondary blasting. Primary blasting is the first stage where the limestone is
broken into pieces. If these are not small then a second blasting is done. Usually, the pieces are made by primary
blasting.
After blasting, the excavation process takes place, which is also known as limestone raising, where the limestone
is taken from the quarry to the factory for crushing.
Crushing
Limestone is crushed and reduced to a size suitable for storage and blending. The raw materials are then ground in
a grinder. The size of the crushed material required depends on the type of the grinding mill. Generally, crushing
is done in a primary and a secondary crusher. The primary crusher could be a fully mobile and self-propelled unit
operating near the quarry face, a semi-mobile unit moved at infrequent intervals, or a static unit. The secondary
crusher is a static unit and is used if required.
Pre-homogeneous stage
Crushed limestone is packed, as this is important while transporting the crushed limestone, and transported onto
the reclaimer stage. This is the pre-homogeneous stage where additives like silica, alumina and iron ore are added
to spread it in such a way so as to make it of uniform quality. This helps in reducing the variations in the chemical
characteristics of limestone.

Raw mill grinding
Reclaiming is followed by raw milling, where the raw-meal is grounded into a fine powder to be burnt in the kiln.
The raw meal must be finely ground so that it reacts fully on passing through the kiln.
There are various types of milling systems such as vertical roller mill (used for bigger capacity) and ball roller
mill (used for smaller capacity). The selection of a particular mill is influenced by the type of raw material
available, power consumed and the project outlay. Modern milling systems use separators/classifiers, which
separate the fine product and return the coarse materials to the grinding unit.
Blending and storage

Raw milling is followed by blending and storage. Blending is done in silos. Typically, two or more silos are used
in a series or in parallel with a total capacity of at least one day's raw-meal feed. The raw-meal is continuously
circulated and blended in the first silo; it then passes to the second silo for further homogenisation (perfect
blending and mixing of various constituents). Alternatively, blending and storage could be combined in a single
large silo wherein the blending occurs on extraction through a series of orifices at the base, with limited
fluidisation.
Pre-heating stage and kiln

After the raw meal is blended, it is heated in a rotary kiln. In modern cement plants, before the heat treatment in
the kiln, the raw meal is heated in a pre-heater or/and a pre-calcinator system in order to ensure a higher degree of
burning and enhance the product’s quality. The vertical cyclone chambers are used through which raw material
passes through the kiln and the hot gases are used to pre-heat the material as they swirl through the cyclones
which rises more then 200 feet from the kiln.
The kiln is a refractory, lined with refractory bricks for insulation throughout its high-heat zones. The kiln is
cylindrical and marginally inclined to a horizontal position (typically with a gradient of 3-4 degrees), and rotates
at 2-4 revolutions per minute. It is an important constituent of the cement-making process.
The solid material, which passes down the kiln while it rotates, flows in the opposite direction to the flame. Gas,
oil or pulverised coal is used to ignite the flame at the lower or front end of the kiln. The various processes
occurring in the kiln include evaporation of water, thermal decomposition of clay minerals (at 300-650 0C), calcite
formation (at 800-950 0C), liquid formation (at around 1,250 0C), and the formation of clinker (at over 1,400 0C).
The clinker from the kiln passes into a cooler, where convective air flow cools the clinker for subsequent handling
and grinding. The heat is reclaimed and recycled to the kiln as secondary combustion air. Other gases reclaimed
from the suspension pre-heater (SP), pre-calcinator systems, and the cooler are used as primary combustion air in
the kiln. The excess air from the cooler is cleaned and released into the atmosphere.
Process profile
There are four processes of heat treatment - dry process, wet process, semi-wet process and semi-dry process. Till
the 1970’s, the wet process technology accounted for a major share of the cement industry . But since the early
1980’s, the use of the dry process increased significantly.

In 1950, there were only 33 kilns in India, out of which 32 were wet-based and 1 was running on the semi-dry
process. In 2006, there were 162 kilns, out of which 128 were based on the dry process, 26 on wet process and 8
on semi-dry process.
Figure 1: Process profile

1 8 8
100%
90%
26
80%
70%
60%
No. of kilns
93
50% 32
40% 128
30%
20%
10% 18
0%
1950 1970 2006
Dry process Wet process Semi-dry process
Dry process
The dry process is commonly used across the world to manufacture cement. In the dry process, the kiln feed has
moisture content of around 0.5 per cent.
The feed is fed into a suspension pre-heater, which consists of a system of cyclones. In the cyclone system, the
kiln feed is re-circulated and heated by a mixture of counter-current and co-current flow of exhaust gases coming
from the kiln. The gas temperature at the pre-heater inlet and exit are typically around 500C and 3500C,
respectively. At the kiln inlet, the temperature is above 7500C for solids and 1,2000C for gases.
Alternately, the ground raw meal is fed into a pre-calcinator. In a pre-calcinator, the raw meal is partly calcined
(by up to 90 per cent) by burning over 50 per cent of the total fuel requirement. (Calcination is de-carbonation of
the calcium carbonate content in the ground raw meal. De-carbonation can be achieved in less than a minute in a
pre-calcinator.)
The temperature of the kiln feed entering the kiln could be above 9000C. The rotary kiln, in which the remaining
heat treatment occurs, is shorter, as compared with that used in the wet process. The length/diameter ratio (L/D) is
15-18. The maximum temperature that the material attains on passing through the hottest zone of the kiln is
around 1,4500C. The nodules of clinker formed are in a partially molten state. The surface temperature of the
clinker reduces to around 1,1000C, before it passes on to a cooler.
Wet process
In the wet process, the kiln feed has moisture content of 30-40 per cent and de-flocculants to enable pumping. The
slurry feed is fed directly through the upper end of the kiln. Generally, the kiln has a diameter of around 6 metres
and is around 200 metres in length. Steel chains are hung in the dry zone near the upper end of the kiln to transfer
heat from the hot gases to the moist slurry feed. Towards the end of the chain (located at the upper end of the

kiln), the slurry feed forms nodules, which are dried and partly de-carbonated. Further down the kiln, the feed is
fully de-carbonated to form clinker.
Semi-wet process
The semi-wet process is a modification of the wet process. The slurry is dehydrated in a filter press to form a cake
with moisture content of around 20 per cent. The kiln feed is fed directly into a long chained kiln or a pre-heater
and a short kiln. (The pre-heater could be a moving Lepol grate or disintegrator cyclone system.)
Semi-dry process
In the semi-dry process, the raw meal is pre-treated as in the dry process. In an inclined rotating dish or drum, the
raw meal is made into nodules of around 15 mm spheres, with moisture content of around 12 per cent. The
nodules are then fed into a moving grate, where partial drying, pre-heating and partial de-carbonation takes place
prior to the kiln stage. The subsequent treatment is similar to that in the dry process.
Cement grinding
Cement is produced by grinding cooled clinker with gypsum (hydrated calcium sulphate). Either naturally
available gypsum or chemically manufactured gypsum is used. Gypsum is added to regulate the setting time of
cement. The clinker is ground in a ball mill, which is a tubular mill partly filled with steel balls.
Vertical roller mills (VRM) have provided a breakthrough in the area of grinding. The VRM draws 20-30 per cent
less electricity compared to ball mill system, apart from its higher drying capacity.
Another breakthrough that has come in the cement industry is the application of the high pressure grinding rolls
(HPGR). HPGR has been widely used in the Indian cement industry for upgrading the existing ball mill systems.
There are two basic cement grinding systems - open circuit and closed circuit - which are used in HPGR. The
open circuit system is found in old cement plants and mini cement plants. In this system, the material is not re-
circulated after passing through the grinding mill. The mill diameter is up to 2.5 metres, with a L/D ratio of
around 5.5.
Modern cement plants employ the closed circuit system. In this system, the material from the grinding mill is
taken to an air separator or a classifier; here it is separated, based on the particle size into a 'fine product' stream
and a 'coarse reject' stream. The coarse reject stream is returned to the grinding mill for re-grinding. The mill
diameter is up to 4.5 metres, with a L/D ratio of around 3. The coarse reject stream is re-circulated at a rate similar
to that of the clinker feed.
The closed circuit grinding system is more efficient than the open circuit system on account of the re-circulation
of the coarse reject feed (resulting in lower wastage) and lower power consumption (especially for higher
compression cements). However, for OPC-33, there is no significant energy saving, since power is required to
operate the air separator and ancillary equipments, such as elevators. The overall power consumption is 35-40
kWh per tonne of cement for both open and closed circuit grinding systems. In the case of cement with higher
compression strength such as rapid hardening cement (400 kg per cm2), OPC-43 and OPC-53 grades, 3-5 per cent
of energy is saved as compared with the open circuit grinding system where the energy consumption is 55 kWh
per tonne.

The following chart illustrates the cement manufacturing process, right from raw material quarrying up to the
bagging of the cement.
Chart 1: Manufacturing process of mini-cement plants

Stockpiles
Primary
Screen
crusher Secondary
crusher
Pre-blending
hall
Vertical
roller mill
Homogenisation
Rawmaterial silo
silos St ack
Elect rostat ic
precipit ator
C O A L M ILL
A LT ER N A T IV E F U ES
Wast e fuels/
Solvents Coal
Preheater
silo
t ower
Stack
Tires Filter
Rotary kiln Cliner cooler
Gypson Addit ives

silo silo
Clinker
storage
Finish mill
Finished
cement silo
Load-out /
Packaging

Manufacturing process of mini-cement plants
In India, most mini-cement plants use the vertical shaft kiln (VSK) technology, which is different from the
technology used by the large cement plants. The VSK technology uses the semi-dry process, which involves:
• Crushing of limestone and other raw materials to a size of up to 12 mm.
• Proportioning of the raw material and fuel (in general, coke breeze) based on the raw meal composition.
• Preparing nodules by adding water to the raw meal in a pan-type noduliser.
• Feeding the nodules to the vertical shaft kiln. In the kiln, the nodules are dried, calcined, sintered and cooked
as the nodules travel down the kiln and get converted to clinker.
• Grinding the clinker and gypsum in a grinding mill to obtain ordinary portland cement.
Use of alternate fuels

The cement industry is thermal energy intensive. The average heat generated during the process is 3,200-3,300
kilo joules per kg. Burning fossil fuels, such as pulverised coal/oil in the rotary kiln, generates high-grade heat.
However, as these fuels are becoming progressively expensive and difficult to procure, there is an increasing need
for alternate fuels for kilns. However, alternate fuels like agro wastes, waste oils, animal meal and rice husk are
being tested, and on the basis of the method used for manufacturing, costs effectiveness, availability will be seen
and subsequently implemented.
Usage of fly ash and slag in blended cement

In the last few years, blended cement has increased in popularity over OPC due to advantages such as increased
production, low cost of production and less pressure on natural minerals like limestone. Further, all concerns
regarding the quality and properties of blended cement have been eroded as it is being accepted all across India.
This increased acceptance is a positive sign for the cement industry as they can produce more cement with the
current capacity by increasing their blending ratio. Typically, there are two types of blending materials that are
used by the cement industry:
Fly ash
Fly ash is a finely divided residue resulting from the combustion of pulverised bituminous coal or sub-bituminous
lignite in thermal power plants, which consists of inorganic mineral constituents of coal and organic matter that
are not fully burnt. It is generally grey in colour and refractory in nature.
Owing to its pozzolanic properties, fly ash can be mixed with clinker to form portland pozzolana cement (PPC).
When fly ash is added to cement it improves its strength, durability and reduces emission of carbon dioxide but
there is a limit to which cement manufacturers can use fly ash per tonne of cement as properties of cement starts
changing beyond a level. This limit has been defined by the BIS as 35 per cent.

Slag
After fly ash, slag – produced as a waste material by steel plants - is the next best option for blending material.
Slag is a non-metallic product consisting essentially of glass containing silicates of lime and other bases, and is
obtained as a by product in the manufacture of pig iron in blast furnace and electric furnace. Granulated slag is
used in the manufacture of portland slag cement (PSC). Slag cement can be used for all plain and reinforced
concrete constructions, mass concreting structures such as dams, reservoirs, swimming pools, river embankments
and bridge piers amongst others. It is beneficial where low heat of hydration and resistance to alkali-silica reaction
are required for structures in harsh environments where chemical and mildly acidic waters are encountered (where
the use of OPC is not recommended), for marine constructions, dykes and wharves where there is sulphatic water.
In short, PSC can be used wherever OPC is used.
Slag adds strength and durability to concrete. Slag cement also improves concrete's plastic properties such as
workability and finish. From an environmental perspective, its use in concrete makes concrete ‘greener’; not only
is it a recycled material, but, for each cubic yard of concrete in which it replaces portland cement, slag cement
significantly reduces energy consumption and greenhouse gases emitted in the production of concrete raw
materials.
The upper limit specified by the BIS in case of slag cement is 55 per cent.
Although the cement industry has largely tried to be energy efficient industry, there still exists the need for
improvement. The cement industry should look at the ways of appropriate pre-blending facilities for raw materials
and energy efficient equipments for the auxiliary/minor operations. They should also look at building bulk loading
and transportation facilities as well as advance computerised kiln control systems.

Cement, being a high-volume, low-value commodity, cannot be transported over long distances thus making the
industry regional in nature. The demand-supply situation in the Indian cement industry varies from region to
region - there could be a surplus scenario in one whereas a deficit scenario could exist in another. Also, some
regions have the advantage of exporting cement. Therefore, the dynamics vary between regions, and hence it is
important to understand the regional dynamics in order to have a comprehensive understanding of the country’s
cement industry.
North
States included: Uttarakhand, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Chandigarh and
Rajasthan.
The demand for cement in the northern region increased at a CAGR 19.3 per cent from 2003-04 to 2007-08.
Hence, clinker production (from which cement is derived) rose at a CAGR of 6.7 per cent during the period under
consideration. In line with this, capacity grew at a CAGR of 4.7 per cent, leading to high utilisation rates. This
translated to an increase in prices across the region.
Table 1: North – Capacity/ production/ operating rate

mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08
Clinker capacity 22.1 23.0 23.8 24.4 26.6
Clinker production 20.7 21.9 23.0 23.3 26.8
Capacity utilisation 94% 95% 96% 95% 100%
Source: CMA, CRISIL Research
Key markets and players: The key markets in the northern region are Rajasthan, Punjab and Haryana. Rajasthan is
the highest consumption state in the North at around 16.2 million tonnes in 2007-08. The high demand is due to
the increase in road construction i.e. projects like concretisation and inter-linking village roads as well as demand
from commercial malls and housing.
Figure 1: North – Market share (2007-08)
(per cent)
ACC
17
Others
31
Grasim
12
Birla Corp Gujarat Ambuja

7 13
Shree Cement JK Synthetics

13 7

Top players: Top players in the northern region are ACC, Gujarat Ambuja Cement Ltd (GACL), Grasim, Shree
Cement, Birla Corporation Ltd and JK Synthetics Ltd. These players account for over 70 per cent share of the
north Indian market, thus making the region reasonably consolidated.
Figure 2: North – Domestic market prices
180
160
140
120
100
80
60
Sep-02
Aug-03
Sep-04
Aug-05
Sep-06
Aug-07
Jul-01
Apr-01
Jan-03
Jan-05
Nov-01
Apr-03
Jun-04
Nov-03
Apr-05
Jun-06
Jan-07
Nov-05
Apr-07
Nov-07
Feb-02
May-02
Feb-04
Mar-06
Mar-08
Delhi Bhatinda
Note: Prices are indexed to 2001.

Source: CMA
Demand drivers: The demand in the northern region has been driven by construction of roads in several states, the
hydel projects in Himachal Pradesh and setting up of commercial complexes in and around the NCR region. Delhi
had been witnessing demand from the metro rail project and infrastructure preparations for the 2009
Commonwealth Games. States like Punjab and Haryana have registered increase in housing demand along with
higher government spending on infrastructure facilities in order to attract industrial investments. Cities like
Chandigarh, Jaipur, Gurgaon and Noida have been witnessing large scale residential as well as commercial
construction.
South
States included: Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Andaman & Nicobar Islands, Goa, and
Pondicherry.
The South has large cement capacities in India due to the vast amounts of limestone reserves available in the
region. Demand for cement in the region has grown at a rapid pace of 11.4 per cent between 2003-04 to 2007-08..
On the production front, clinker production increased at a CAGR of 8.9 per cent during the same period under
consideration, while capacities rose by mere 3.8 per cent, thus leading to a surge in operating rates, which went up
from 78.0 per cent in 2003-04 to 95.0 per cent in 2007-08. The strong growth in demand resulted in an increase in
prices from Rs 141 per bag of 50 kgs in 2003-04 to Rs 242 per bag of 50 kgs in 2007-08.
Table 2: South – Capacity/ production/ operating rate

mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08

Key markets: Tamil Nadu, Andhra Pradesh and Karnataka have been the key markets in the southern region. In
2007-08, there was thrust on infrastructure and housing, amongst others, that led to a modest cement demand
growth of 10.6 per cent (y-o-y) in 2007-08. Amongst various states in the southern region, Andhra Pradesh
registered the highest growth in demand i.e. 17 per cent (y-o-y) on account of various infrastructure projects
undertaken by the government and private sector.
Top players: The top five players in the South are India Cements, Grasim-UltraTech, Madras Cements, ACC and
Chettinad Cement. India Cements enjoys the largest market share. However, following Grasim’s acquisition of
L&T’s cement plants (now named as UltraTech), both companies are fighting for the numero uno position. The
graph below gives the market share of all the major players in southern India.
Figure 3: South – Market share (2007-08)
(per cent)
ACC
8
Grasim
8
Others
42 India Cements
17
UltraTech
8
Chettinad Cement
Madras Cements 6
11
Figure 4: South – Domestic market prices

180
160
140
120
100
80
60
Sep-02
Aug-03
Sep-04
Aug-05
Sep-06
Aug-07
Jul-01
Apr-01
Jan-03
Nov-01
Apr-03
Jun-04
Jan-05
Nov-03
Apr-05
Jun-06
Jan-07
Nov-05
Apr-07
Nov-07
Feb-02
May-02
Feb-04
Mar-06
Mar-08
Bangalore Chennai Hyderabad

Source: CMA
Demand drivers: Real estate development has augmented cement demand in the southern region. Infrastructure
projects like irrigation in Andhra Pradesh along with the upcoming international airport in Chennai and other
projects like the Bangalore Metro Rail are expected to contribute towards the strong demand.

East
States included: Assam, Bihar, Chattisgarh, Jharkand, Meghalaya, Orissa, Sikkim and West Bengal
The eastern region is primarily an industrial belt due to abundant mineral reserves. Demand in the region is
primarily on account of industrial activities that are not cement intensive, thus translating to low cement demand.
However, demand picked up in 2004-05, mainly due to the increase in housing and commercial construction (IT
and ITES projects) activities in West Bengal. Hence, the utilisation rates in this region, which were around 75 per
cent during the last 5 years, are the lowest on a pan-India basis.
Table 3: East – Capacity/ production/ operating rate

mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08
Key markets: The high consumption states are West Bengal, Orissa and Bihar. Demand growth in West Bengal
has been around 6 per cent CAGR (2003-04 to 2007-08) whereas Chattisgarh - a natural resource rich state - rose
at a CAGR of around 28 per cent during the same period.
The largest supplier of cement is Chattisgarh while the largest consumer is West Bengal. However, the central
region also meets some of eastern region’s demand. In 2007-08, the production in Chattisgarh was 9.8 million
tonnes while consumption was 3.8 million tonnes, whereas in West Bengal, the production was around 3.5 million
tonnes and consumption around 7.2 million tonnes.
Top players: The French player, Lafarge enjoys the largest market share in the region followed by ACC. The
other players are Century Textiles and UltraTech. The eastern region enjoys the highest level of consolidation in
the country with the top five players accounting for close to 70 per cent of the market share.
Figure 5: East – Market share (2007-08)
(per cent)
ACC
Others 17
25
Century Textiles
10
Grasim
UltraTech 7
13
Gujarat Ambuja
9
Lafarge
19

Figure 6: East – Domestic market prices
180
160
140
120
100
80
60
Sep-02
Aug-03
Sep-04
Aug-05
Sep-06
Aug-07
Jul-01
Apr-01
Jan-03
Jun-04
Jan-05
Nov-01
Apr-03
Nov-03
Apr-05
Jun-06
Jan-07
Nov-05
Apr-07
Nov-07
Feb-02
May-02
Feb-04
Mar-06
Mar-08
Kolkata Patna

Source: CMA
Demand drivers: West Bengal has been witnessing increasing housing demand along with commercial complexes
(IT and ITeS projects) followed by Jharkand and Orissa, which are witnessing increased industrial and
infrastructural projects along with the canal lining project and other small industrial projects in Chattisgarh.
West
States included: Maharashtra and Gujarat
The demand for cement in the western region increased at a CAGR 9.4 per cent during the last 5 years. However,
due to a higher base, clinker production rose marginally at a CAGR of 1.2 per cent from 2003-04 to 2007-08, and
capacity additions at a CAGR of 0.9 per cent. This resulted in operating rates hovering above 90 per cent in the
last 5 years, indicating strong demand in the region.
Table 4: West – Capacity/ production/ operating rate

mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08
Key markets: Maharashtra, which is the highest consuming state (around 13 per cent of the total domestic demand
in 2007-08) in the country, has registered a demand growth of 8.8 per cent (CAGR) in the last 5 years, whereas
the demand growth in Gujarat was higher at a CAGR of 10.5 per cent during the same time period.
Top players: Both, the Grasim-UltraTech group and ACC-GACL group, have a presence in the western market,
with market share of 31 and 29 per cent, respectively. Other key players in region are Kesoram Industries, Orient
Cement and Sanghi Industries. The market share of the major players is shown in the graph below.

Figure 7: West – Market share (2007-08)
(per cent)
ACC
8
Others Grasim
29 9
Gujarat Ambuja
20
Sanghi Industries Ltd
5
Kesoram Inds
7
UltraTech
22
The western region has the advantage of exporting excess quantity of cement to regions like the Middle East,
which is witnessing strong growth rates due to the construction boom. However, in April 2008, to reign in rising
domestic cement prices, the government banned cement exports indefinitely which was revoked in June 2008.
Figure 8: West – Domestic market prices
160
140
120
100
80
60
40
20
0
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07
Oct-07
Ahmedabad Mumbai

Source: CMA
Demand drivers: The western region has been experiencing robust commercial (complexes and shopping malls)
and housing demand. Cities like Pune are becoming hubs for IT and ITES parks, and commercial complexes.
Ahmedabad has also been witnessing an increase in investments, which is creating strong demand for cement.

Central region
States included: Uttar Pradesh and Madhya Pradesh
Madhya Pradesh (MP) has large limestone deposits in the Satna cluster. The demand for cement has increased at a
CAGR of 7.7 per cent from 2003-04 to 2007-08. Hence, clinker production rose at a CAGR of 5 per cent in the
same period under consideration. There are no limestone reserves in Uttar Pradesh (UP). But being one of the
largest markets, players have set up grinding units in the state as companies prefer to have grinding units close to
consumption centres.
Table 5: Central – Capacity/ production/ operating rate

mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity Utilisation 97% 97% 98% 96% 98%
Key markets: UP is the second largest consuming state in the country - around 9 per cent of the total domestic
consumption. The consumption in the state has increased at a CAGR of 5 per cent during the last 5 years. Apart
from catering to the state’s own requirement, MP dispatches significant quantities of cement to UP and Bihar.
Top players: Jaiprakash Industries is the largest player in the region with the market share of over 19 per cent
followed by ACC with a market share of 17 per cent. Other prominent players in the region are Century, Grasim
and Prism Cement. The top five players in the industry account for more than 65 per cent of the total market
share.
Figure 9: Central – Market share (2007-08)
(per cent)
Jaiprakash Inds
Others 19
34
ACC
18
Prism Cement
9
Grasim
Century Textiles 10
10

Figure 10: Central – Domestic market prices
160
140
120
100
80
60
40
20
0
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07
Oct-07
Lucknow Bhopal

Source: CMA
Demand drivers: The demand in the region is primarily derived from various infrastructure projects being
implemented in UP and urban housing in MP.

5.0 Player profile
Associated Cement Companies Ltd

Background
Associated Cement Companies Ltd (ACC) was formed in 1936 by amalgamating 10 cement companies promoted
by Tata, Khatau, Dinshaw and Kellick. A new association was forged between ACC and the Holcim group of
Switzerland in 2005. In 2005, Holcim and Gujarat Ambuja entered into a strategic alliance to acquire a 34.17 per
cent stake in ACC through Ambuja Cement India Ltd. The current promoter Ambuja Cement India Ltd, through a
strategic partnership with Gujarat Ambuja Cement Ltd and Holcim, holds around 43 per cent of the company's
equity while institutional investors have around 36 per cent, and individuals hold around 21 per cent.
ACC’s core business is cement with a prime focus on RMC. It also provides consultancy services, plant erection
and plant management contracts. ACC has also extended its services overseas to the Middle East, Africa and
South America, where it has provided technical and managerial consultancy to a number of consumers, and also
helps in the operation and maintenance of cement plants. ACC's operations are spread throughout the country with
14 modern cement factories. The company also has a subsidiary called as ACC Concrete Ltd, which has 16
modern RMC plants across India.
It sells cement under the brand names ACC Super, ACC Sureksha, ACC Surakhya and ACC Samrat amongst
others.
The shareholding pattern as on December 31, 2007 is given below:
Table 1: ACC – As of December 31, 2007

Category % of total shares
Promoters holding (Holcim Group) 43.0
Institutions 36.2
Mutual funds/UTI 3.1
Banks, FI's, insurance cos and governments 18.0
Foreign institutional investors 15.1
Others 20.8
Total equity holding 136
Source: Company
ACC has a pan-India presence (14 plants) and ranks among the top players across all regions. Its growth has been
chiefly organic, and to a lesser extent, through brownfield capacity additions. In 2005, the company merged two
of its subsidiaries, DCSL and Bargah Cement with itself. ACC’s capacity was around 18.25 million tonnes as on
March 2007-08. The company has a healthy operating rate of over 90 per cent for last 3 years, indicating strong
demand.

Figure 1: ACC – Proportion of consumption by Figure 2: ACC – Market share and rank
various states (2006-07) (2006-07)
(per cent) 35 5
30
4
per cent of market share

Uttar Pradesh 25
17
3
20
Rank
Others Maharashtra
49 13 15
2
10
Punjab 1
Karnataka 11 5
10
0 0
UP Mah Punjab Karnataka
Mkt share Rank
Source: CMA Source: CMA
The company’s despatches have been increasing at 3 per cent (CAGR) over the last 4 years i.e. 2002-03 to 2006-
07. ACC’s pan-India presence helps it mitigate risks that might arise due to slowdown in a particular region.
Around 51 per cent consumption in 2006-07 was covered by four states, namely UP (17 per cent), Maharashtra
(14 per cent), Punjab (11 per cent) and Karnataka (9 per cent). The company’s market share in these states are; UP
– 19.7 per cent, Maharashtra – 14 per cent, Punjab – 30.9 per cent and Karnataka – 16.1 per cent.
Even though ACC is one of the oldest and largest producers of cement in India, it lagged its peers in operating
efficiency until a few years ago. Raw materials and power account for the largest chunk of costs. The company
has tried to make their cost structure favourable by opting for captive power plants and going in for higher level of
blending thus enhancing profitability.
Figure 3: ACC – Break up as a per cent of sales Figure 4: ACC – Break-up as a per cent of sales
(Mar-02) (Dec-07)
Operating
Materials Costs Materials Costs
Margins Operating
27 13 Power and Fuel
Selling Exps 15 Margins
18 17
30
Other Exps
5 Power and Fuel Selling Exps Employee
Employee 22 13 Costs
Costs Other Exps 5
Other
7 22 Other
Manufacturing
Manufacturing
Exps
Exps
6
0

Table 2: ACC – Key financial indicators
31-Dec-05 31-Dec-06 31-Dec-07
Operating income Rs million 32,035 57,678 70,750
Operating margins per cent 17.8 29.5 33.0
Net profits Rs million 5,337 12,369 14,273
Net margins per cent 16.7 21.4 20.2
RoCE (return on average capital employed) per cent 28.9 43.4 52.4
Gearing times 0.50 0.25 0.25
Net cash accruals to debt times 0.67 1.53 -
Interest coverage times 8.2 24.0 27.1
Current ratio times 1.01 1.19 1.09
Note:
The figures for December 31, 2005 are for 9 months i.e. from April 2005 to December 2005, owing to
changes in the year end.
Source: Annual reports, CRISIL Research
The company’s operating margins improved from 29.5 per cent in 2005-06 to 33.0 per cent in 2006-07 due to the
improvement in realisations. Other key parameters like operating margins, gearing, and interest coverage have
registered healthy growth rates, indicating a good credit profile.
The company is expected to post healthy growth in revenues in the medium term led by volume growth on the
back of a rise in demand from end-user segments like housing and infrastructure. Also, its multi-location
advantage will help offset any slowdown that may arise in a particular region.
Ambuja Cements Ltd

Background
Ambuja Cements Ltd, the flagship company of the Ambuja Group, was set up in 1986. Switzerland-base Holcim
holds the largest share (16.5 per cent) in the company. The company recently amalgamated Ambuja Cement
Eastern Ltd with itself (w.e.f January 2006) thus consolidating its presence in other parts of the country as well.
The company also holds marginal stake in ACC through Ambuja Cement India Ltd (ACIL). (ACL holds a 22 per
cent stake in ACIL, its joint venture with Holcim, which in turn holds a 42.97 per cent stake in ACC.) Its
subsidiaries are Cement Ambuja International Ltd, Ceylon Ambuja Cements Pvt Ltd and Indo Nippon Special
Cements Ltd. The company sells its cement under the Ambuja Cement brand.
Table 3: GACL – As of December 31, 2007

Promoters holding (Holcim Group) 46.5
Institutions 37.6
FIs, banks, insurance companies and government 13.5
Others 16.0
Source: Company

It has 12 cement plants out of which six are grinding units. As on December 2007, GACL’s capacity stood at 15.3
million tonnes per annum. The company has been operating at a healthy rate of above 90 per cent for the last 3
years.
GACL has been witnessing a healthy growth rate in its despatches, which is rising by 8.49 per cent (CAGR) for
last 4 years. Around 50 per cent despatches are covered by 3 states i.e. Gujarat (14.11 per cent), Maharashtra
(25.75 per cent) and Punjab (11.18 per cent). The market share of GACL in these states is: Gujarat – 19.72 per
cent, Maharashtra – 19.7 per cent and Punjab – 28.69 per cent.
Figure 5: GACL – Proportion of consumption by Figure 6: GACL – Mkt share and rank
various states (2006-07) (2006-07)
(per cent) 35 3
30

Maharashtra 25
2
24
20
Rank
Others
49 15
1
10
Gujarat
14
5
Punjab
11
0 0
Maharashtra Gujarat Punjab
Mkt share Rank
The company is considered to be one of the least cost producers of cement in the world. Its drive for cost
leadership has been powered by various productivity improvements and cost-cutting measures. For GACL, the
largest cost is power followed by raw materials.
Figure 7: GACL – Break-up as a per cent of sales Figure 8: GACL – Break-up as a per cent of sales
(Jun-02) (Dec-07)
Operating Materials costs Materials costs

margins 20 Operating 18
33 margins
34
Power and fuel

20
Power and fuel

Employee costs
Selling exps & 23
Selling exps & 4
freight Employee costs
Other exps Other freight
14 4
4 manufacturing 19 Other
exps Other exps manufacturing
2 3 exps
2

Table 4: GACL – Key financial indicators
30-Jun-05 31-Dec-06 31-Dec-07
Operating income Rs million 26,133.4 62,667.2 63,717.8
Net profits Rs million 4,654.5 15,032.5 17,691.1
RoCE (return on average capital employed) per cent 15.7 31.3 -
The operating margins have improved due to increased sales and higher realisations. The company is also
maintaining healthy gearing, interest coverage and other ratios, indicating an improved credit profile.
It is expected to benefit from the strong demand prevalent in the end-user segments domestically while exports are
expected to remain healthy, as it will take some time for capacities to come on-stream in the Middle East.
UltraTech Cement Ltd

Background
UltraTech Cement Ltd (UCL) was incorporated in 2000 as L&T Cement Ltd. In 2004, Grasim Industries Ltd
acquired management control and named it UltraTech Cement Ltd. It is now a subsidiary of Grasim Ltd. The
company sells cement under the brand name UltraTech Cement and Narmada Cement amongst others.
Table 5: UltraTech Cement Ltd – As of December 31, 2007

Promoters holding (Aditya Birla Group) 54.09
Institutions 16.66
Others 29.24
Source: Company
As on March 2007, the company had a capacity of around 17 million tonnes per annum with 10 plants operating
in Maharashtra, Gujarat, Andhra Pradesh, Chhattisgarh and Tamil Nadu.
UCL’s diversified presence allows it to cater to various states, primarily Maharashtra, Gujarat, Andhra and
Karnataka. Though it mostly caters to the West and South, it does have a presence in the East as well. Around 54
per cent consumption in 2006-07 was covered by three states - Gujarat – 16.61 per cent, Karnataka – 9.97 per cent
and Maharashtra – 27.92 per cent.

Figure 9: UltraTech Cement Ltd – Proportion of Figure 10: UltraTech Cement Ltd – Market share
consumption by various states (2006-07) & rank (2006-07)
(per cent) 25 4
20
3
Gujarat

17
15
Rank
Others 2
45 Karnataka
10 10
1
5
Mah
28
0 0
Gujarat Karnataka Mah
Market share Rank
Figure 11: UltraTech Cement Ltd – Break-up as a Figure 12: UltraTech Cement Ltd – Break-up as a
per cent of sales (Mar-04) per cent of sales (Mar-07)
Operating Materials costs

margins Materials costs Operating
18
14 24 margins
Selling exps &
30
freight
21
Power and fuel

Other exps
Power and fuel Selling exps & 23
6 Other exps
Employee costs 28 freight Employee costs
2
Other 3 23 Other 2
manufacturing manufacturing
exps exps
4 2
Power and fuel and material costs constitute the largest component of input cost for UCL, accounting for around
23 per cent and 18 per cent of net sales, respectively. The third largest cost component is selling cost, which
accounts for around 23 per cent of net sales.

Table 6: UltraTech Cement Ltd – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
Net profits Rs million 29 2,298 7,823
Net cash accruals to debt times 0.1 0.3 0.6
The company’s operating margins improved to 29.3 per cent in 2006-07 from 17.1 per cent in 2005-06, owing to
volume growth coupled with higher realisations. Net margins have also increased from 6.9 per cent in 2005-06 to
15.9 per cent in 2006-07. In addition, RoCE as well as the interest coverage improved significantly over the
previous year, indicating an improved credit profile for the company.
Grasim Industries Ltd

Background
Grasim Industries Ltd is the flagship company of the Aditya Birla Group. Starting as a textiles manufacturer in
1948, Grasim ventured into cement production in the mid-1980s, setting up its first cement plant at Jawad,
Madhya Pradesh. Since then it has grown to become a key cement player in the country. In July 2004, Grasim
acquired a majority stake and management control in UCL, the de-merged cement business of Larsen & Toubro
(L&T). One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the
top of the cement league in India. The group's combined capacity stands raised to 31 million tpa, of which 17
million tpa comes from UCL. Currently, Grasim's cement operations span across the country, with 11 integrated
plants, seven split grinding units, four bulk terminals and 10 RMC plants. Branded as Birla White, the division
manufactures white cement in a variety of textures and finishes.
Table 7: Grasim India Ltd – As of December 31, 2007

Promoters holding (Aditya Birla Group) 25.2
Institutions 43.2
Others 31.6
Source: Company
The company’s total cement capacity was around 14.32 million tpa as on March 2007 with production at 15.32
million tonnes. Its operating rate, which has been rising steadily, was at 106 per cent in 2006-07.

While it caters to almost all regions, the three main states are Maharashtra (15 per cent), Karnataka (13 per cent)
and Rajasthan (10 per cent). These are major consuming states for Grasim and account for 38 per cent of total
despatches.
Figure 13: Grasim India Ltd – Proportion of Figure 14: Grasim India Ltd – Market share &
consumption of varoius states rank (2005-06)
(per cent)
20 4
18
16
3

Maharashtra
14
15
Karnataka 12
Rank
13 10 2
6
Others 1
Rajasthan 4
62
10
2
0 0
Mah Karnataka Rajasthan
Market share Rank
Figure 15: Grasim India Ltd – Input costs as per Figure 16: Grasim India Ltd – Input costs as per
cent of cost of sales (2001-02) cent of cost of sales (2006-07)
Selling
expenses & Selling
freight expenses &
freight Material costs
18
20 48
Other expenses Other expenses
Material costs
4 3
45
Other
manufacturing Other
expenses manufacturing
3 expenses
2
Employee costs
Employee costs 8
9 Power and fuel Power and fuel
21 19
Table 8: Segment revenue – Cement business

(Rs million) 2005-06 2006-07
Revenue 42,376 58,290
PBIT 6,364 14,482
NPM (%) 15.0 24.8
RoCE (%) 17.3 24.7
Source: Company annual reports

Table 9: Grasim India Ltd – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
For Grasim, 2006-07 was a good year in terms of cement as well as consolidated business growth. Around 67.0
per cent of the total operating income came from the cement business. The operating income grew by 28.0 per
cent in 2006-07 as against the 21.6 per cent in the 2005-06. During the year, the net profit margins registered a
growth of 16.0 per cent and 17.7 per cent in cement and consolidated basis, respectively. Other key ratios like
RoCE and interest coverage have registered healthy improvement as well.
Jaiprakash Associates Ltd

Background
Jaiprakash Associates Ltd (JAL), which was promoted in 1996, is a part of the Jaypee Group. It was formerly
known as Jaypee Cement Ltd with operations mainly in cement production.
Presently based in Lucknow, JAL has a presence in engineering, construction, cement and hospitality businesses.
Its cement business is progressing steadily via brands like Buland. The company owns three cement plants at
Rewa and Bela in Madhya Pradesh. JAL's cement market is limited to UP and MP. Its clientele includes National
Thermal Power Corporation, Indian Railways and Gas Authority of India Ltd amongst others.
Table 10: Jaiprakash Associates Ltd – As of December 31, 2007

Promoters holding (Jaypee Group) 45.0
Institutions 37.0
Others 18.1
Source: Company
The company’s total cement capacity was around 6.6 million tpa as on March 2007. It produced 7.1 million
tonnes of cement in 2006-07, thus maintaining an operating rate of above 100 per cent (The company’s operating
rate has been rising steadily over the last 3 years).

JAL caters mainly to MP and UP. It is progressively entering Jammu & Kashmir and Uttaranchal. The main
consumption centres for JAL are UP (51 per cent), MP (18 per cent) and Bihar (10 per cent). These account for 79
per cent of the company’s total despatches.
Figure 17: Jaiprakash Associates Ltd – Figure 18: Jaiprakash Associates Ltd – Market
Proportion of consumption by various states share & rank (2005-06)
(2005-06)
(per cent) 25 3.5
3
20

Others 2.5
21
15
2
Rank
1.5
10
Bihar
10 1
Uttar Pradesh 5
51 0.5
Madhya
Pradesh
18 0 0
UP MP Bihar
Market Share Rank
Figure 19: Jaiprakash Associates Ltd – Break-up Figure 20: Jaiprakash Associates Ltd – Break-up
as a per cent of sales (Mar-02) as a per cent of sales (Mar-07)
Power and fuel
Material costs 2 Operating
10 Material costs
margins
Operating 21
22
margins Employee costs Power and fuel
25 4 6
Selling
Selling expenses
expenses 9
0
Other expenses
Other Other expenses Other Employee costs
4
manufacturing 4 manufacturing 4
expenses expenses
55 34
Table 11: Segment revenue – Cement business

(Rs million) Mar 05 Mar 06 Mar-07
Revenue 9,669.5 11,941.4 18,462.2
PBIT 1,214.5 1,905.1 5,705.9
PBIT margins 12.6 16 30.9
RoCE 4.23 9.3 4.81
Source: Company annual reports

Table 12: Jaiprakash Associates Ltd – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
Key parameters of the cement division showed significant improvement in 2006-07. The share of cement business
in total operating income stood at around 50 per cent of the overall business. Consolidated operating margins have
grown from 23.1 per cent in 2005-06 to over 29.1 per cent in 2006-07. Even though there was improvement in
other key parameters like gearing and RoCE, thus indicating improved credit profile, net margins declined from
19.7 per cent in 2005-06 to 11.6 per cent in 2006-07.
India Cements Ltd

Background
India Cements Ltd (ICL), which is part of the India Cement Group, began operations in 1946. The company is
primarily in the cement business, operating in the southern region of India.
The company suffered considerable losses in the past on account of depressed realisations and high interest costs,
which arose from the substantial debt levels incurred from its aggressive acquisition strategy during 1997-2000.
Huge losses and inability to pay off its creditors resulted in ICL resorting to debt restructuring under the corporate
debt restructuring scheme in 2005-06, following which its interest costs declined considerably.
The company’s strategy of pursuing inorganic growth by acquiring Rasi Cement and Visaka Cement has been
favourable.
Table 13: India Cements Ltd – As of December 31, 2007

Promoters holding (India Cements Ltd) 28.07
Institutions 50.88
Others 21.06
Source: Company

As on March 2007, the company’s total capacity from its seven plants was 8.8 million tpa - four plants are located
in Andhra Pradesh and the remaining three in Tamil Nadu. ICL caters mainly to the southern region (accounts for
89 per cent), where Andhra Pradesh and Tamil Nadu account for 55 per cent. The main consumption centres for
ICL are Tamil Nadu (30 per cent), Andhra Pradesh (25 per cent), Karnataka (18 per cent) and Kerela (16 per
cent).
Figure 21: India Cements Ltd – Proportion of Figure 22: India Cements Ltd – Market share &
consumption (2006-07) rank (2006-07)
(per cent) 25 5
20 4

Others
11 Tamil Nadu
Karnataka 30
15 3
18
Rank
10 2
5 1
Kerala
Andhra Pradesh
16
25
0 0
TN AP Kerala Karnataka
Market share Rank
The company does not enjoy the margins of its peers due it its high power and fuel, employee and freight costs. In
2006-07, power and fuel costs and selling expenses constituted around 52 per cent of net sales. However, the
company is taking steps towards making its cost structure favourable by increasing the proportion of power
through captive power plants.
Figure 23: India Cements Ltd – Break-up as a Figure 24: India Cements Ltd – Break-up as a
per cent of sales (Mar-02) per cent of sales (Mar-07)
Material costs
Op margins Material costs
11
16 13
Op margins
Power and fuel
33
24
Power and fuel Emp costs

Selling exps & 31 5
Selling exps &
freight Other exps freight
26 4 Emp costs
23 Other exps Other mfg exps
8
Other mfg exps 2 2
2

Table 14: India Cements Ltd – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
Net profits Rs million -875 145 3,662
Net margins per cent -7.7 0.9 16.2
Net cash accruals to debt times (0.00) 0.07 0.21
Its operating margins improved significantly from 17.1 per cent in 2005-06 to 32.6 per cent in 2006-07 on account
of increased volumes coupled with higher realisations. There was improvement in the company’s credit profile,
which can be seen in RoCE, gearing and interest coverage that have all registered significant improvement in
2006-07.
Madras Cements Ltd

Background
Madras Cements Ltd (MCL) was established in 1957. The company, a part of the Ramco Group, is based at
Rajapalayam, Tamil Nadu. It has a presence in South India, in particular, Kerala and Tamil Nadu. It is the fourth
largest producer in southern India. Madras Cements has four cement plants, three of which are located in Tamil
Nadu and one in Andhra Pradesh.
Table 15: Madras Cement – As of December 31, 2007

Promoters holding 40.5
Institutions 28.56
Others 30.93
Source: Company
MCL’s capacity in 2006-07 was 5.5 million tonnes. It caters mainly to the southern region, which accounts for 90
per cent of the company’s total despatches.

Figure 25: Madras Cement – Proportion of Figure 26: Madras Cement – Market share & rank
consumption by various states (2005-06) (2005-06)
(per cent) 25 4
20
3

Others
14
15
Andhra Pradesh Tamil Nadu
Rank
16 45 2
10
1
5
Kerala
25
0 0
Tamil Nadu Kerala Andhra Pradesh
Market share Rank
Power and fuel, and selling costs are the two major costs for the company, both of which have seen an increase
thereby affecting MCL’s cost structure. MCL has higher operating efficiency due to its low distribution costs and
efficient power and fuel consumption. Also, due to high competition in the south, the selling cost of the company
has increased. But overall the company has healthy operating efficiency.
Figure 27: Madras Cement – Break-up as a per Figure 28: Madras Cement – Break-up as a per
cent of sales (Mar-02) cent of sales (Mar-07)
Op margin Material costs

Material costs 21
26 Op margin
24
36
Selling exps &

freight
17
Power and fuel Selling exps & Power and fuel
Other exps 20
24 freight
2 Emp costs
5 16 Other mfg exps
Other mfg exps Emp costs
2 Other exps 1 5
1

Table 16: Madras Cement – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
Net profits Rs million 559 790 3,080
The company’s operating margins have jumped significantly from 21.5 per cent in 2005-06 to 35.9 in 2006-07.
Other key ratios like RoCE, gearing and interest coverage also improved substantially in 2006-07, indicating
better credit profile.
Shree Cement Ltd

Background
Shree Cement Ltd (SCL), which is part of the GD Bangur Group, began commercial production in 1985. The
company’s cement plant is situated at Beawar and Ajmer in Rajasthan. Its cement is marketed under the brand
name Shree Ultra Cement and sub-brand names like Red Oxide Cement and Jung Rodhak Cement.
Table 17: Shree Cement – As of December 31, 2007

Promoters holding 63.72
Institutions 14.43
Others 21.85
Source: Company
The company’s total capacity was around 4.5 million tonnes in 2006-07. It mainly caters to the northern markets -
Rajasthan (39 per cent), Haryana (22 per cent) and Delhi (11 per cent), which together account for 72 per cent of
total despatches.

Figure 29: Shree Cement – Proportion of Figure 30: Shree Cement – Market share & rank
consumption by various states (2006-07) (2006-07)
(per cent) 45 4
40
35
Others 3

28
30
Rajasthan
39 25
Rank
2
20
15
Delhi 1
10
11
Haryana
5
22
0 0
Rajasthan Haryana Delhi
Market share Rank
SCL is a low cost producer due to lower energy costs as the company relies entirely on pet coke for its energy
requirement, which is a cheaper source as compared to coal. The company has also taken adequate steps to make
its cost structure favourable and competitive thus leading to higher profitability.
Figure 31: Shree Cement – Break-up as a per Figure 32: Shree Cement – Break-up as a per
cent of sales (Mar-02) cent of sales (Mar-07)
Material costs Material costs

Op margins 15 18
24
Op margins Power and fuel
43 17
Power and fuel

Selling exps & 28 Emp costs
freight Emp costs 4
Selling exps &
26 4
Other exps freight
Other exps
2 16
Other mfg exps 1 Other mfg exps
1 1

Table 18: Shree Cement – Key financial indicators
31-Mar-05 31-Mar-06 31-Mar-07
Net profits Rs million 540 264 1,821
In 2006-07, the company’s operating margins as well as net margins registered a healthy increase. While
operating margins increased from 31.8 per cent in 2005-06 to 43.7 per cent 2006-07, net margins increased from
3.8 per cent in 2005-06 to 13.0 per cent in 2006-07. The increased level of debt to fund its expansion plans has led
to a rise in the company’s gearing, but with the increase in interest coverage to 52.2 times, its credit profile has
remained intact.

Industry statistics June 2008
Sections
1.0 Demand supply C-1

2.0 State profile C-29
3.0 Raw material C-45
4.0 Tariffs C-57
5.0 Market share and financials C-59
6.0 Exports C-67
7.0 Cost C-71
Figures
1.0 Demand supply

01 Cement - Capacity and production trends C-27
02 Cement - Production and consumption trends C-28
3.0 Raw material

01 Coal - International prices and landed cost of imports C-48
Tables
1.0 Demand supply

01 Capacity additions in 2006-07 and 2007-08 C-1
02 Cement - Capacity, production and operating rates C-2
03 Cement - Player-wise capacity trends (large units) C-3
04 Cement - Player-wise, unit-wise capacity trends (large units) C-5
05 Cement - Player-wise, unit-wise production trends (large units) C-10
06 Cement - Player-wise operating rates (large units) C-14
07 Cement - Variety-wise production C-15
08 Cement - Company-wise changes in product mix C-16
09 Cement - Trends in rail lead distance and proportion of rail despatches C-19
10 Company-wise cement despatches by rail and road C-20
11 Cement - Aggregate demand-supply C-21
12 Cement - State-wise demand-supply C-22
13 Cement - State-wise trends in demand C-24
14 Cement - State-wise trends in demand growth C-25
15 Housing segment - Budget allocation C-26
16 Cement - State-wise trends in per capita consumption C-27
Continued…
CRISIL RESEARCH CEMENT ANNUAL REVIEW C-i

…continued
Tables
2.0 State profile

01 State profile - Andhra Pradesh C-29
02 State profile - Chhattisgarh C-30
03 State profile - Delhi C-31
04 State profile - Gujarat C-32
05 State profile - Haryana C-33
06 State profile - Karnataka C-34
07 State profile - Kerala C-35
08 State profile - Madhya Pradesh C-36
09 State profile - Maharashtra C-37
10 State profile - Orissa C-38
11 State profile - Punjab C-39
12 State profile - Rajasthan C-40
13 State profile - Tamil Nadu C-41
14 State profile - Uttar Pradesh C-42
15 State profile - West Bengal C-43
3.0 Raw material

01 Fuel receipts C-45
02 Fuel consumption C-45
03 Coal - Receipts to cement industry to total coal production C-46
04 Coal - Royalty C-47
05 Coal - Change in pithead prices C-47
06 Gypsum - Domestic prices C-48
07 Lignite - Domestic prices C-48
08 Company-wise coal consumption C-49
09 State-wise trends in power tariffs C-50
10 Company-wise captive power generating capacity C-51
11 Cement - Production by use of captive power C-55
4.0 Tariffs
01 Cement - Excise duty C-57
02 Cement - Customs duty C-58
03 Cement - State-wise sales tax C-58
Continued…
C-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

…continued
Tables
5.0 Market share and financials

01 Cement - Aggregate producer market shares C-59
02 Cement - Region-wise market shares C-60
03 Cement - Net sales of companies C-61
04 Cement - Operating profit margins of companies C-62
05 Cement - Net profit margins of companies C-63
06 Cement - Debt-equity ratio C-64
07 Cement - Return on capital employed C-65
6.0 Exports
01 Cement - Company-wise exports C-67
02 Cement - Country-wise exports C-68
03 Clinker - Company-wise exports C-68
04 Clinker - Country-wise exports C-69
7.0 Cost
01 Company-wise limestone cost C-71
02 Company-wise coal costs C-72
03 Company-wise power consumption C-73
04 Company-wise coal cost C-74
CRISIL RESEARCH CEMENT ANNUAL REVIEW C-iii

1.0 Demand supply
Table 1: Capacity additions in 2006-07 and 2007-08 (million tonnes)

Company Plant State Month of Existing Capacity Total
commissioning capacity added
(a) New
Meghalay Cement Ltd Meghalaya Apr-06 0.30 0.30
Rain Industries Ltd Andhra Pradesh Apr-06 0.50 0.50
J K Gotan Rajasthan Mar-07 0.10 0.10
Cement Manu. Co. Ltd Meghalaya Apr-07 0.59 0.59
Megha T & E (P) Ltd Meghalaya May-07 0.46 0.46
Ambuja Cement Farakka West Bengal May-07 1.00 1.00
Ambuja Cement Rurkee Uttaranchal Sep-07 1.00 1.00
Ambuja Cement Magdalla Gujarat Jan-08 1.00 1.00
Jaypee Panipat Haryana Mar-08 1.00 1.00
Grasim Panipat Haryana Mar-08 1.30 1.30
Grasim Dadri Uttar Pradesh Mar-08 1.30 1.30
Sub total- (a) 8.55 8.55
(b) Expansion
ACC Gagal I Himachal Pradesh Apr-06 1.80 0.20 2.00
ACC Gagal II Himachal Pradesh Apr-06 1.72 0.68 2.40
OCL India Ltd Orissa Apr-06 1.28 0.52 1.80
Dalmia India Ltd Tamil Nadu Apr-06 1.23 2.27 3.50
Jaypee Rewa Madhya Pradesh Apr-06 2.50 0.30 2.80
Jaypee Bela Madhya Pradesh Apr-06 2.00 0.20 2.20
J.K. Nimbahera Rajasthan Jul-06 2.80 0.50 3.30
K.C.P. Ltd Andhra Pradesh Jul-06 0.58 0.08 0.66
Lakshmi Cement Rajasthan Mar-07 2.23 1.17 3.40
Lafarge Sonadin Chhattisgarh Apr-07 0.40 0.15 0.55
My Home Indus Ltd Andhra Pradesh Apr-07 1.56 1.20 2.76
Vasvadatta Cement] Karnataka Apr-07 2.00 1.65 3.65
Shree Cement Rajasthan Jun-07 4.50 1.50 6.00
Chilampur Andhra Pradesh Dec-07 1.30 0.15 1.45
Shree Cement Rajasthan Jan-08 6.00 3.10 9.10
Century Cement Chhattisgarh Jan-08 1.80 0.30 2.10
Sankarnagar Tamil Nadu Jan-08 1.55 0.25 1.80
Miahar Cement Madhya Pradesh Jan-08 3.00 0.80 3.80
Dalavoi Tamil Nadu Feb-08 1.30 0.55 1.85
Grasim Bhatinda Punjab Mar-08 1.20 0.55 1.75
Aditya Cement Rajasthan Mar-08 1.75 0.05 1.80
Ultratech JCW Orissa Mar-08 0.80 0.20 1.00
Continued….
CRISIL RESEARCH CEMENT ANNUAL REVIEW C-1

...continued
(million tonnes)
Company Plant State Month of Existing Capacity Total
commissioning capacity added
Ultratech WBCW West Bengal Mar-08 1.00 0.20 1.20

Ultratech HCW Chhattisgarh Mar-08 1.60 0.30 1.90
Grasim Cement- Raipur Chhattisgarh Mar-08 2.06 0.44 2.50
Kesoram Andhra Pradesh Mar-08 0.90 0.30 1.20
Orient Cement Andhra Pradesh Mar-08 1.60 0.80 2.40
Grasim South Tamil Nadu Mar-08 1.03 0.37 1.40
Rajashree Cement Karnataka Mar-08 2.60 0.60 3.20
Ultratech Gujarat Gujarat Mar-08 5.30 0.50 5.80
Jafrabad Gujarat Mar-08 0.40 0.10 0.50
Rajashree Cement Maharashtra Mar-08 1.40 0.40 1.80
Orient Cement Jalgaon Maharashtra Mar-08 0.80 0.20 1.00
Manikgarh Maharashtra Mar-08 1.50 0.40 1.90
Ultratech ACW Maharashtra Mar-08 3.30 0.30 3.60
Jaypee Rewa Madhya Pradesh Mar-08 2.80 0.20 3.00
Jaypee Bela Madhya Pradesh Mar-08 2.20 0.20 2.40
Sub total- (b) 21.68 93.47
(c) Deration / Deletion
ACC Mancherial Andhra Pradesh Jul-06 0.33 0.33 -
Sankaridurg Tamil Nadu Sep-07 0.72 0.12 0.60
Utratech APCW Andhra Pradesh Mar-08 2.30 0.30 2.00
Uitratech ARCW (G) Tamil Nadu Mar-08 1.20 0.10 1.10
Chunar Uttar Prdesh Mar-08 1.68 0.18 1.50
Churk Uttar Prdesh Mar-08 0.47 0.47 0.00
Sub total- (c) 1.50 5.20
Total-(a) + (b) + ( c ) 28.73
Source: CMA
Table 2: Cement - Capacity, production and operating rates

(million tpa) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Large cement units
Capacity 130.0 139.0 146.4 153.6 158.1 166.7 175.7
Production (million tonnes) 102.0 111.4 117.4 127.6 141.8 155.7 167.6
Operating rates (per cent) 78.5 80.1 80.2 83.1 88.5 93.4 95.4
Mini cement and white cement units
Capacity 11.1 11.1 11.1 11.1 11.1 11.1 11.1
Production (million tonnes) 4.5 5.0 5.0 6.0 6.0 6.0 6.0
Operating rates (per cent) 40.5 45.0 45.0 54.1 54.1 54.1 54.1
Notes
1) Large units refer to those with a capacity of over 0.198 million tpa.
2) The installed capacity of mini cement plants increased from not exceeding 600 tpd to 900 tpd or
to 297,000 per annum and total clearance of cement produced in a financial year not to exceed 300,000 tonnes.
3) Capacities and production details are not monthly additions but the final published numbers
Source: All India Mini Cements Assocation of India and CMA
C-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Table 3: Cement - Player-wise capacity trends (large units)
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ACC 15.9 16.1 16.8 18.2 18.6 20.0 19.9
Andhra Cements 1.2 1.2 1.7 1.7 1.7 1.7 1.7
Binani Cement 1.7 1.7 1.8 2.2 2.2 2.2 2.2
Birla Corp 4.0 4.5 4.8 4.8 5.1 5.8 5.78
CCI 3.9 3.9 3.9 3.9 3.9 3.9 3.9
Century Textiles 4.7 4.7 4.7 5.9 6.3 6.3 6.6
Chettinad Cement 1.0 1.8 1.8 1.8 1.8 1.8 1.8
Dalmia Cement 1.0 1.0 1.2 1.2 1.2 3.5 3.5
DLF Cement - - - - - - -
Dwaraka 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Grasim 12.4 13.6 14.3 14.3 14.3 14.3 14.7
Ambuja Cement Ltd 10.7 12.2 12.5 14.6 14.9 15.2 16.9
Gujarat Sidhee Cement 1.2 1.2 1.2 1.2 1.2 1.2 1.2
HMP Cements 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Idcol Cement 1.0 1.0 0.6 - - - -
India Cements 9.0 8.8 8.8 8.8 8.8 8.8 8.9
Indo Rama Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0
JK Corp 2.2 2.2 2.2 2.2 2.2 2.2 3.2
JK Synthetics 2.7 3.0 3.3 3.3 3.4 3.9 4.1
JK Udaipur Udyog 0.9 0.9 0.9 0.9 0.9 0.9 0.9
J and K 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Jaiprakash Inds. 4.1 4.6 4.6 5.6 6.1 6.6 6.7
Jaipur Udyog 1.0 1.0 1.0 1.0 1.0 1.0 1.0
KCP 0.6 0.6 0.6 0.6 0.6 0.6 0.7
Kalyanpur Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Kanoria Inds 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Kesoram Inds 2.1 2.1 2.1 2.1 2.6 2.9 4.3
Khalari 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Kistna 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Lafarge 4.5 4.5 5.0 5.0 5.0 5.0 5.0
Madras Cements 3.9 5.0 5.5 5.5 5.5 5.5 5.5
Malabar Cements 0.4 0.4 0.4 0.6 0.6 0.6 0.6
Mangalam Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Mawnluh Cherra 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Mysore Cement 2.1 2.1 2.1 2.1 2.1 2.1 2.1
My Home Industries n.a. n.a. n.a. n.a. 0.9 1.6 2.7
OCL India 1.0 1.0 1.3 1.3 1.3 1.7 1.8
Orient Cement 2.0 2.0 2.0 2.3 2.4 2.4 2.5
Panyam Cements 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Penna Cement 0.7 1.0 1.0 2.5 2.1 2.5 2.5
Prism Cement 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Continued….

...continued
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Priyadarshini 0.6 0.6 0.6 0.7 1.0 1.1 1.1
Raymond Woollens - - - - - - -
Rohtas Inds 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Sanghi Industries Ltd. - - 2.6 2.6 2.6 2.6 2.6
Saurashtra Cement 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Sevalia 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Shree Cement 2.2 2.6 2.6 2.6 3.2 4.5 6.0
Shriram Cement 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Sone Valley 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Sri Vishnu Cement - - - - - - -
Tamil Nadu Cement 0.9 0.9 0.9 0.9 0.9 0.9 0.9
TISCO - - - - - - -
UP State Cement 2.6 2.6 2.6 2.6 2.6 2.6 2.5
Visvesvaraya 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Ultratech Cement 15.0 16.3 17.0 17.0 17.0 17.0 17.1
Zuari Inds 2.2 3.4 3.4 3.4 3.4 3.4 3.4
Meghalaya Cement - - - - - 0.2 0.3
Total 130.0 139.0 146.4 153.6 158.1 167.1 175.2
G: Grinding unit
Notes
1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as
Ambuja Cement Eastern and in India Cement as Raasi Cement (India) respectively.
2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as
Ambuja Cement Rajasthan Ltd since April 2000.
3) Figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included
with those of Grasim, Ultratech Cement Ltd, Grasim and Lafarge, respectively.
4) Raymond Woollens was acquired by Lafarge in 2000.
5) Sri Vishnu Cement's figures have been included with Zuari Cement from February 2002.
Source: CMA

Table 4: Cement - Player-wise, unit-wise capacity trends (large units)
(million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ACC 15.9 16.1 16.8 18.2 18.6 20.0 19.9
Chaibasa Bihar - - - - - - -
Jharkhand 0.6 0.6 0.6 0.6 0.7 0.9 0.9
Chanda Maharashtra 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Damodhar Cement and Slag (G) West Bengal 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Gagal-1 Himachal Pradesh 1.1 1.1 1.1 1.1 1.3 2.0 2.0
Idcol Cement Orissa - - 0.3 1.0 1.0 1.0 1.0
Jamul Chhattisgarh 1.6 1.6 1.6 1.6 1.6 1.6 1.6
Madhya Pradesh - - - - - - -
Kymore Madhya Pradesh 1.7 1.7 1.7 1.7 1.7 1.7 1.7
Lakheri Rajasthan 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Madukkarai Tamil Nadu 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Mancherial Andhra Pradesh 0.3 0.3 0.3 0.3 0.3 0.1 0.0
Sindri Bihar - - - - - - -
Jharkhand 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Tikaria (G) Uttar Pradesh 0.7 0.8 1.2 1.9 2.0 2.0 2.0
Wadi - New Karnataka 2.6 2.6 2.6 2.6 2.6 2.6 2.6
Wadi Phase-I and II Karnataka 2.1 2.2 2.1 2.2 2.1 2.1 2.1
Andhra Cement 1.2 1.2 1.7 1.7 1.7 1.7 1.7
Nadikude-Durga Cement Andhra Pradesh 0.5 0.5 1.0 1.0 1.0 1.0 1.0
Vijaywada (G) Andhra Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Vizag (G) Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Binani Cement Rajasthan 1.7 1.7 1.8 2.2 2.2 2.2 2.2
Birla Corp 4.0 4.5 4.8 4.8 5.1 5.8 5.8
Birla Cement Rajasthan 0.6 0.7 0.7 0.7 0.7 0.7 0.7
Birla Vikas Madhya Pradesh 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Chittor Cement Rajasthan 0.9 1.3 1.3 1.3 1.3 1.3 1.3
Durgapur (G) West Bengal 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Raebaraeli Uttar Pradesh 0.4 0.4 0.6 0.6 0.6 0.6 0.6
Satna Cement Madhya Pradesh 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Durga Hitech Cement (G) West Bengal 0.3 1.0 1.0
CCI 3.9 3.9 3.9 3.9 3.9 3.9 3.9
Adilabad Andhra Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Akaltara Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Madhya Pradesh - - - - - 0.0 0.0
Bokajan Assam 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Charkhi-Dadri Haryana 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Delhi (G) Delhi 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Kurkunta Karnataka 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Mandhar Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Neemuch Madhya Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Rajban Himachal Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Tandur Andhra Pradesh 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Continued….

…continued
Century Cement Chhattisgarh 1.2 1.2 1.2 1.7 1.8 1.8 1.9
Maihar Cement Unit-I Madhya Pradesh 1.9 2.0 2.0 2.7 3.0 3.0 3.2
Maihar Cement Unit-II Madhya Pradesh 0.1 - - - - - -
Manikgarh Unit-I Maharashtra 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Manikgarh Unit-II (G) Maharashtra - - - - - - -
Karikalli Tamil Nadu 0.4 1.2 1.2 1.2 0.7 1.2 1.2
Karur Tamil Nadu 0.6 0.6 0.6 0.6 0.4 0.6 0.6
Dalmia Cement Tamil Nadu 1.0 1.0 1.2 1.2 0.7 3.5 3.5
DLF Cement Rajasthan - - - - - - -
Dwaraka Gujarat 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Grasim 12.4 13.6 14.3 14.3 14.3 14.3 14.5
Aditya Cement Rajasthan 1.6 1.7 1.7 1.7 1.7 1.7 1.8
Grasim Cement - Raipur Chhattisgarh 1.9 1.9 2.1 2.1 2.1 2.1 2.1
Grasim South Tamil Nadu 1.0 1.0 1.0 1.0 1.0 1.0 1.1
Grasim-Bhatinda (G) Punjab 0.3 1.0 1.2 1.2 1.2 1.2 1.2
Rajashree Cement - Hotgi (G) Maharashtra 1.3 1.4 1.4 1.4 1.4 1.4 1.4
Rajashree Cement - Malkhed Karnataka 2.2 2.3 2.6 2.6 2.6 2.6 2.7
Sewree (G) Maharashtra 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Sikka Gujarat 0.9 1.1 1.1 1.1 1.1 1.1 1.1
Sikka New Unit Gujarat 0.2 - - - - - -
Vikram Cement Unit-I Madhya Pradesh 2.8 3.0 3.0 3.0 3.0 3.0 3.0
Vikram Cement Unit-II Madhya Pradesh - - - - - - -
Vikram Super Cement Madhya Pradesh - - - - - - -
Ambuja Cement Gujarat 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Ambuja Cement - Bhatinda (G) Punjab 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Ambuja Cement - Sankrail (G) West Bengal 0.9 1.0 1.0 1.0 1.0 1.0 1.0
Ambuja Cement Eastern Chhattisgarh 1.3 1.0 1.0 1.0 1.0 1.0 1.0
Ambuja Cement Raj Ltd. Rajasthan 1.5 1.5 1.5 1.8 1.8 1.8 1.8
Gajambuja Cement Gujarat 2.5 2.5 2.5 3.0 3.0 3.0 3.0
Gujarat Ambuja Unit HP Himachal Pradesh 1.2 1.2 1.2 1.2 1.2 1.5 1.6
Gujarat Ambuja Unit Ropar (G) Punjab 1.3 1.3 1.3 2.5 2.5 2.5 2.5
Maratha Cement Maharashtra - 1.7 2.0 2.4 2.4 2.4 2.4
Gujarat Sidhee Cement Gujarat 1.2 1.2 1.2 1.2 1.2 1.2 1.2
HMP Cements 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Porbander Gujarat 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Shahabad Karnataka 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Idcol Cement Orissa 1.0 1.0 0.6 - - - -
India Cements 9.0 8.8 8.8 8.8 8.8 8.8 8.9
Chilamkur Works Andhra Pradesh 1.3 1.3 1.3 1.3 1.3 1.3 1.3
Dalavoi Tamil Nadu 1.1 1.3 1.3 1.3 1.3 1.3 1.3
Raasi Cement (India) Andhra Pradesh 2.1 2.3 2.3 2.3 2.3 2.3 2.3
Sankaridurg Tamil Nadu 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Sankarnagar Tamil Nadu 1.4 1.6 1.6 1.6 1.6 1.6 1.6
Sri Vishnu Cement Andhra Pradesh 0.9 - - - - - -
Visaka Cement Andhra Pradesh 1.0 1.1 1.1 1.1 1.1 1.1 1.1
Yerraguntla Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Indo Rama Cement Maharashtra 1.0 1.0 1.0 1.0 1.0 1.0 1.0
continued….

…continued
JK Corp 2.2 2.2 2.2 2.2 2.2 2.2 3.2
Lakshmi Cement Unit-I Rajasthan 2.2 2.2 2.2 2.2 2.2 2.2 3.2
Lakshmi Cement Unit-II Rajasthan - - - - - - -
Lakshmi Cement Unit-II, Phase-II Rajasthan - - - - - - -
JK Synthetics 3.7 4.0 4.3 4.3 4.4 3.9 4.1
JK Mangrol Cement (G) Rajasthan 0.3 0.6 0.7 0.8 0.8 0.8 0.8
Nimbahera - JK Cement Rajasthan 2.4 2.4 2.5 2.5 2.7 3.1 3.3
Jaipur Udyog Rajasthan 1.0 1.0 1.0 1.0 1.0 0.0 0.1
J and K Jammu and Kashmir 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Jaiprakash Inds 4.1 4.6 4.6 6.1 6.1 6.6 6.7
Jaypee Bela Madhya Pradesh 1.5 1.5 1.5 2.0 2.0 2.2 2.2
Jaypee Rewa Madhya Pradesh 2.5 2.5 2.5 2.5 2.5 2.8 2.8
Sadva Khurd (G) Uttar Pradesh 0.2 0.6 0.6 0.6 0.6 0.6 0.6
Jaypee Ayodhya (G) Uttar Pradesh - - - 1.0 1.0 1.0 1.1
Jaipur Udyog Rajasthan 1.0 1.0 1.0 1.0 1.0 1.0 1.0
KCP Andhra Pradesh 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Kalyanpur Cement Bihar 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Kanoria Inds Karnataka 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Kesoram Inds 2.1 2.1 2.1 2.1 2.6 2.9 4.3
Kesoram Cement Andhra Pradesh 0.9 0.9 0.9 0.9 0.9 0.9 0.9
Vasavadatta Unit-I Karnataka 1.2 1.2 1.2 1.2 1.7 2.0 3.4
Vasavadatta Unit-II Karnataka - - - - - - -
Khalari 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Khalari Bihar - - - - - - -
Jharkhand 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Kistna Andhra Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Lafarge 4.5 4.5 5.0 5.0 5.0 5.0 5.0
Arasmeta Cement Chhattisgarh 2.2 2.2 1.6 1.6 1.6 1.6 1.6
Lafarge - Jojobera (G) Bihar - - - - - - -
Jharkhand 1.9 1.9 3.0 3.0 3.0 3.0 3.0
Lafarge - Sonadih Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Madras Cements 3.9 5.0 5.5 5.5 5.5 5.5 5.5
Alathiyur Works Tamil Nadu 1.1 1.4 1.4 1.4 1.4 1.4 1.4
Alathiyur Works-II Tamil Nadu 0.9 1.8 1.8 1.8 1.8 1.8 1.8
Jayantipuram Andhra Pradesh 1.1 1.1 1.6 1.6 1.6 1.6 1.6
Ramasamyraja Nagar Tamil Nadu 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Malabar Cements 0.4 0.4 0.4 0.6 0.6 0.6 0.6
Malabar Cements Kerala 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Malabar Cements (G) Kerala - - 0.0 0.2 0.2 0.2 0.2
Mangalam Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Mangalam Cement Rajasthan 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Neer Shree Cement Rajasthan 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Mawnluh Cherra Meghalaya 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Mysore Cement 2.1 2.1 2.1 2.1 2.1 2.1 2.1
Diamond Cement - Jhansi (G) Uttar Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Diamond Cement Unit-I Madhya Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Diamond Cement Unit-II Madhya Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Mysore Cement Karnataka 0.6 0.6 0.6 0.6 0.6 0.6 0.6
My Home Industries Andhra Pradesh n.a. n.a. n.a. n.a. 0.91 1.6 2.7
continued….

…continued
OCL India Orissa 1.0 1.0 1.3 1.3 1.3 1.7 1.8
Orient Cement 2.0 2.0 2.0 2.3 2.4 2.4 2.5
Orient Cement Andhra Pradesh 1.3 1.3 1.3 1.5 1.6 1.6 1.7
Orient Cement-Jalgaon Maharashtra 0.7 0.7 0.7 0.8 0.8 0.8 0.8
Panyam Cements Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Penna Cement 0.7 1.0 1.0 2.5 2.1 2.5 2.5
Tadpatri Andhra Pradesh 0.7 1.0 1.0 1.5 1.4 1.5 1.5
Ganeshpahad Andhra Pradesh - - - 1.0 0.7 1.0 1.0
Prism Cement Madhya Pradesh 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Priyadarshini Andhra Pradesh 0.6 0.6 0.6 1.0 1.0 1.0 1.0
Rohtas Inds Bihar 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Sanghi Industries Gujarat - - 2.6 2.6 2.6 2.6 2.6
Saurashtra Cement Gujarat 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Sevalia Gujarat 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Shree Cement 2.2 2.6 2.6 2.6 3.2 4.5 6.0
Raj Cement Rajasthan - - - - - - -
Shree Cement Rajasthan 2.2 2.6 2.6 2.6 3.2 4.5 6.0
Shriram Cement Rajasthan 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Sone Valley 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Sone Valley Bihar - - - - - - -
Jharkhand 0.3 0.3 0.3 0.3 0.3 0.3 0.3
TISCO - - - - - - -
Tisco (G), Bihar Bihar - - - - - - -
Tisco (Raipur) Madhya Pradesh - - - - - - -
Alangulam Tamil Nadu 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Ariyalur Tamil Nadu 0.5 0.5 0.5 0.5 0.5 0.5 0.5
continued….

…continued
Ultratech Cement 15.0 16.3 17.0 17.0 17.0 17.0 17.1
ARCW (G) Tamil Nadu 0.7 1.1 1.2 1.2 1.2 1.2 1.2
Jafrabad Gujarat 0.4 0.4 0.4 0.4 0.4 0.4 0.4
L&T - Andhra Pradesh Andhra Pradesh 2.6 2.2 2.3 2.3 2.3 2.3 2.3
L&T - Awarpur Phase-I Maharashtra 3.0 3.0 3.3 3.3 3.3 3.3 3.3
L&T - Gujarat Gujarat 4.2 4.8 5.3 5.3 5.3 5.3 5.3
L&T - Jharsuguda (G) Orissa 0.8 0.8 0.8 0.8 0.8 0.8 0.8
L&T Hirmi Chhattisgarh 1.9 1.9 1.6 1.6 1.6 1.6 1.6
Magdalla (G) Gujarat 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Ratnagiri (G) Maharashtra 0.4 0.4 0.4 0.4 0.4 0.4 0.4
WBCW (G) West Bengal 0.2 1.0 1.0 1.0 1.0 1.0 1.0
UP State Cement 2.6 2.6 2.6 2.6 2.6 2.6 2.5
Chunar (G) Uttar Pradesh 1.7 1.7 1.7 1.7 1.7 1.7 1.7
Churk Uttar Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.4
Dalla Uttar Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Zuari Inds. 2.2 3.4 3.4 3.4 3.4 3.4 3.4
Sri Vishnu Cement Andhra Pradesh 0.2 1.2 1.2 1.2 1.2 1.2 1.2
Zuari Cement Andhra Pradesh 2.0 2.2 2.2 2.2 2.2 2.2 2.2
Total 130.0 139.0 146.4 153.6 158.1 167.1 175.2
G: Grinding unit
Notes
1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja Cement Eastern and in
India Cement as Raasi Cement (India) respectively.
2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Rajasthan Ltd since April 2000.
3) Figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with
those of Grasim, Ultratech Cement, Grasim and Lafarge, respectively.
6) Capacities are monthly add-ups. Of the total capacity, 2.41 million tpa is not in operation.
7) Idcol Cement was acquired by ACC in December 2003
Source: CMA

Table 5: Cement - Player-wise, unit-wise production trends (large units)
ACC 12.3 13.9 15.4 16.6 17.9 18.6 20.0
Chaibasa Bihar - - - - - - -
Jharkhand 0.3 0.4 0.4 0.5 0.6 0.7 0.7
Chanda Maharashtra 0.6 0.8 0.9 1.0 1.0 1.1 1.2
Damodhar Cement and Slag (G) West Bengal 0.4 0.4 0.5 0.5 0.5 0.5 0.5
Idcol Cement Orissa - - 0.3 0.8 0.8 0.9 1.0
Jamul Chhattisgarh 1.2 0.9 0.8 0.9 1.0 1.2 1.2
Kymore Madhya Pradesh 1.3 1.5 1.3 1.2 1.3 1.6 1.9
Lakheri Rajasthan 0.6 0.7 0.7 0.7 0.7 0.7 0.9
Madukkarai Tamil Nadu 0.7 0.9 0.9 0.9 0.9 0.8 0.9
Mancherial Andhra Pradesh 0.2 0.3 0.2 0.2 0.1 - -
Sindri Bihar - - - - - - -
Jharkhand 0.6 0.7 0.7 0.7 0.9 0.9 0.9
Tikaria (G) Uttar Pradesh 0.7 0.9 1.6 2.0 2.2 2.3 2.4
Wadi - New Karnataka 1.2 2.1 2.6 2.4 2.7 2.6 2.6
Wadi Phase-I and II Karnataka 1.6 1.6 1.6 1.8 1.8 1.6 1.6
Andhra Cements 0.8 0.7 0.6 0.7 0.3 0.6 1.1
Nadikude-Durga Cement Andhra Pradesh 0.6 0.6 0.4 0.5 0.2 0.5 0.7
Vizag (G) Andhra Pradesh 0.2 0.2 0.2 0.3 0.1 0.2 0.4
Binani Cement Rajasthan 1.9 2.1 2.2 2.2 2.3 2.4 3.0
Birla Corp 4.2 4.6 4.8 5.0 5.1 5.3 5.3
Birla Cement Rajasthan 0.7 0.7 0.8 0.8 0.8 0.8 0.8
Birla Vikas Madhya Pradesh 0.8 0.8 0.8 0.8 0.9 0.9 0.9
Chittor Cement Rajasthan 1.1 1.3 1.4 1.4 1.5 1.6 1.7
Durgapur (G) West Bengal 0.5 0.6 0.6 0.7 0.6 0.6 0.5
Raebaraeli Uttar Pradesh 0.4 0.4 0.6 0.6 0.6 0.6 0.5
Satna Cement Madhya Pradesh 0.7 0.7 0.7 0.7 0.7 0.7 0.7
0.0 0.1 0.1
CCI 0.6 0.5 0.6 0.8 0.9 1.0 0.9
Adilabad Andhra Pradesh - - - - - - -
Akaltara Chhattisgarh - - - - - - -
Bokajan Assam 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Charkhi-Dadri Haryana - - - - - - -
Delhi (G) Delhi - - - - - - -
Kurkunta Karnataka - - - - - - -
Mandhar Chhattisgarh - - - - - - -
Neemuch Madhya Pradesh - - - - - - -
Rajban Himachal Pradesh 0.1 0.1 0.2 0.2 0.2 0.2 0.2
Tandur Andhra Pradesh 0.3 0.3 0.3 0.5 0.6 0.7 0.6
Continued….

…continued
Century Cement Chhattisgarh 1.5 1.6 1.6 1.7 1.7 1.8 1.9
Maihar Cement Unit-I Madhya Pradesh 2.5 2.6 2.5 2.9 3.3 3.5 3.4
Maihar Cement Unit-II Madhya Pradesh - - - - - - -
Manikgarh Unit-I Maharashtra 1.1 1.1 1.3 1.4 1.6 1.4 1.6
Manikgarh Unit-II (G) Maharashtra - - - - - - -
Karikalli Tamil Nadu - 0.7 1.0 1.1 1.2 1.7 1.7
Karur Tamil Nadu 0.9 1.0 0.9 1.1 1.2 1.0 1.2
Dalmia Cement Tamil Nadu 1.0 1.2 1.3 1.3 1.6 2.7 3.3
DLF Cement Rajasthan - - - - - - -
Grasim 10.2 11.8 12.5 13.1 14.6 15.3 16.2
Aditya Cement Rajasthan 1.4 1.6 1.5 1.4 1.7 1.9 2.1
Grasim Cement - Raipur Chhattisgarh 1.5 1.6 1.6 1.7 2.0 2.0 2.0
Grasim South Tamil Nadu 0.7 0.9 1.0 0.9 1.2 1.2 1.4
Grasim-Bhatinda (G) Punjab 0.1 0.9 1.1 1.0 1.2 1.2 1.3
Rajashree Cement - Hotgi (G) Maharashtra 1.2 1.4 1.4 1.5 1.5 1.6 1.8
Rajashree Cement - Malkhed Karnataka 1.9 2.1 2.5 2.7 2.9 3.1 3.0
Sewree (G) Maharashtra - - - - - - -
Sikka Gujarat 0.7 0.8 0.7 0.8 0.9 0.9 0.8
Sikka New Unit Gujarat 0.1 - - - - - -
Vikram Cement Unit-I Madhya Pradesh 2.6 2.6 2.7 3.1 3.2 3.3 3.7
Vikram Cement Unit-II Madhya Pradesh - - - - - - 0.0
Vikram Super Cement Madhya Pradesh - - - - - - 0.0
Ambuja Cement Gujarat 1.4 1.6 1.6 1.6 1.5 1.6 1.5
Ambuja Cement - Bhatinda (G) Punjab 0.3 0.3 0.4 0.4 0.6 0.6 0.6
Ambuja Cement - Sankrail (G) West Bengal 0.7 0.9 0.9 1.1 1.1 1.3 1.2
Ambuja Cement Eastern Chhattisgarh 0.8 0.5 0.6 0.8 0.7 0.9 1.0
Ambuja Cement Raj Ltd. Rajasthan 1.3 1.4 1.5 1.6 1.8 1.7 1.8
Gajambuja Cement Gujarat 2.8 2.9 2.9 3.2 3.0 3.3 3.2
Gujarat Ambuja Unit HP Himachal Pradesh 1.0 0.9 1.0 1.0 1.1 1.2 1.2
Gujarat Ambuja Unit Ropar (G) Punjab 1.5 1.8 1.9 2.4 2.7 2.8 2.8
Maratha Cement Maharashtra - 1.6 2.4 2.5 2.6 3.0 3.4
Gujarat Sidhee Cement Gujarat 0.7 0.5 0.6 0.6 0.9 1.3 1.3
Idcol Cement Orissa 0.7 0.8 0.5 - - - -
India Cements 6.3 5.8 6.4 6.5 8.4 8.8 9.2
Chilamkur Works Andhra Pradesh 0.8 0.9 1.1 1.0 1.2 1.4 1.3
Dalavoi Tamil Nadu 1.0 1.0 1.0 1.0 1.1 1.1 1.3
Raasi Cement (India) Andhra Pradesh 1.3 1.0 1.1 1.2 2.2 2.4 2.5
Sankaridurg Tamil Nadu 0.4 0.4 0.4 0.4 0.5 0.6 0.6
Sankarnagar Tamil Nadu 1.1 1.4 1.3 1.4 1.6 1.5 1.8
Sri Vishnu Cement Andhra Pradesh 0.5 - - - - - -
Visaka Cement Andhra Pradesh 0.9 0.8 1.0 1.0 1.2 1.2 1.1
Yerraguntla Andhra Pradesh 0.3 0.3 0.4 0.5 0.6 0.6 0.6
continued….

…continued
Indo Rama Cement Maharashtra 0.5 0.6 0.6 0.6 0.5 0.6 0.7
JK Corp 1.9 2.1 2.3 2.4 2.7 2.8 3.4
Lakshmi Cement Unit-I Rajasthan 1.9 2.1 2.3 2.4 2.7 2.8 3.4
JK Synthetics 2.3 2.9 3.0 3.3 3.5 3.6 3.7
JK Mangrol Cement (G) Rajasthan 0.1 0.6 0.7 0.9 1.0 1.0 0.9
Nimbahera - JK Cement Rajasthan 2.2 2.3 2.3 2.4 2.5 2.6 2.8
JK Udaipur Udyog Rajasthan 0.7 - - - - - -
J and K Jammu and Kashmir 0.1 0.1 0.1 0.1 0.2 0.2 0.2
Jaiprakash Inds 4.2 4.7 4.7 5.4 6.3 7.1 7.1
Jaypee Bela Madhya Pradesh 1.8 1.8 1.8 2.0 2.2 2.4 2.3
Jaypee Rewa Madhya Pradesh 2.4 2.6 2.4 2.6 2.8 3.2 3.3
Sadva Khurd (G) Uttar Pradesh 0.0 0.3 0.5 0.6 0.6 0.6 0.6
Jaypee Ayodhya (G) Uttar Pradesh - - - 0.3 0.8 0.9 0.9
KCP Andhra Pradesh 0.4 0.5 0.5 0.5 0.5 0.6 0.7
Kalyanpur Cement Bihar 0.6 0.6 0.3 0.4 0.5 0.6 0.5
Kanoria Inds. Karnataka 0.2 0.2 0.2 0.1 0.1 0.0 -
Kesoram Inds. 2.3 2.5 2.9 3.1 3.1 3.5 4.5
Kesoram Cement Andhra Pradesh 0.7 0.7 0.8 1.0 1.0 1.1 1.2
Vasavadatta Unit-I Karnataka 1.5 1.8 2.0 2.1 2.1 2.5 3.3
Vasavadatta Unit-II Karnataka - - - - - - -
Lafarge 3.8 3.7 3.8 4.4 4.6 4.7 5.0
Arasmeta Cement Chhattisgarh 1.3 0.8 0.9 1.3 1.3 1.4 1.5
Lafarge - Jojobera (G) Bihar - - - - - - -
Jharkhand 2.1 2.5 2.4 2.6 2.7 2.8 3.0
Lafarge - Sonadih Chhattisgarh 0.4 0.4 0.5 0.5 0.5 0.4 0.5
Madras Cements 3.1 3.4 3.5 3.7 4.6 6.1 5.6
Alathiyur Works Tamil Nadu 1.3 0.8 0.6 0.5 0.8 1.6 1.0
Alathiyur Works-II Tamil Nadu 0.3 0.9 1.1 1.3 1.6 1.9 1.9
Jayantipuram Andhra Pradesh 1.0 0.8 0.7 0.7 1.0 1.3 1.4
Ramasamyraja Nagar Tamil Nadu 0.6 1.0 1.1 1.1 1.2 1.3 1.2
Malabar Cements 0.4 0.4 0.5 0.6 0.7 0.6 0.6
Malabar Cements Kerala 0.4 0.4 0.5 0.4 0.5 0.5 0.4
Malabar Cements (G) Kerala - - - 0.1 0.2 0.2 0.1
Mangalam Cement 1.4 1.4 1.3 1.4 1.6 1.4 1.5
Mangalam Cement Rajasthan 0.4 0.5 0.4 0.5 0.5 0.5 0.5
Neer Shree Cement Rajasthan 0.9 0.9 1.0 0.9 1.1 0.9 1.0
Mawnluh Cherra Meghalaya 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Mysore Cement 1.8 2.1 2.0 1.8 2.0 2.1 2.2
Diamond Cement - Jhansi (G) Uttar Pradesh 0.7 0.8 0.8 0.8 0.7 0.8 0.8
Diamond Cement Unit-I Madhya Pradesh 0.3 0.3 0.3 0.4 0.5 0.6 0.5
Diamond Cement Unit-II Madhya Pradesh 0.5 0.6 0.5 0.5 0.5 0.5 0.6
Mysore Cement Karnataka 0.3 0.4 0.4 0.2 0.4 0.3 0.3
My Home Industries Andhra Pradesh n.a. n.a. n.a. n.a. 0.9 1.7 2.5
continued….

…continued
OCL India Orissa 1.0 1.2 1.2 1.3 1.6 1.9 2.0
Orient Cement 1.4 1.5 1.7 2.0 2.1 2.2 2.4
Orient Cement Andhra Pradesh 1.1 1.0 1.1 1.3 1.3 1.4 1.5
Orient Cement-Jalgaon Maharashtra 0.3 0.5 0.6 0.7 0.8 0.8 0.9
Panyam Cements Andhra Pradesh 0.1 0.0 0.1 0.1 0.0 0.0 0.4
Penna Cement 0.6 1.0 1.2 2.0 1.7 2.7 2.8
Tadpatri Andhra Pradesh 0.6 1.0 1.2 1.3 1.1 1.7 1.7
Ganeshpahad Andhra Pradesh - - - 0.7 0.6 1.0 1.1
Prism Cement Madhya Pradesh 2.0 1.9 2.0 1.9 2.1 2.2 2.4
Priyadarshini Andhra Pradesh 0.7 0.7 0.3 0.8 1.0 1.1 1.6
Sanghi Industries Gujarat - - 0.7 1.2 1.8 2.4 2.5
Saurashtra Cement Gujarat 0.8 0.8 0.6 0.8 1.1 1.4 1.4
Shree Cement 2.4 2.7 2.8 3.0 3.2 4.8 6.3
Raj Cement Rajasthan - - - - - - -
Shree Cement Rajasthan 2.4 2.7 2.8 3.0 3.2 4.8 6.3
Shriram Cement Rajasthan 0.3 0.3 0.3 0.3 0.4 0.4 0.4
Sri Vishnu Cement Andhra Pradesh - - - - - - -
Alangulam Tamil Nadu 0.3 0.2 0.3 0.2 0.3 0.2 0.1
Ariyalur Tamil Nadu 0.4 0.5 0.6 0.6 0.5 0.5 0.5
TISCO - - - - - - -
Tisco (G), Bihar Bihar - - - - - - -
Tisco (Raipur) Madhya Pradesh - - - - - - -
Ultratech Cemco 11.8 12.0 12.2 12.9 13.7 14.6 15.1
ARCW (G) Tamil Nadu 0.5 0.8 0.7 0.7 0.8 0.9 1.0
Jafrabad Gujarat 0.3 0.0 0.1 0.2 0.2 0.2 0.4
L&T - Andhra Pradesh Andhra Pradesh 1.7 2.0 2.3 2.2 2.0 2.1 2.1
L&T - Awarpur Phase-I Maharashtra 2.6 3.1 3.3 3.2 3.1 3.4 3.4
L&T - Gujarat Gujarat 3.2 3.3 2.9 3.0 3.6 3.5 3.6
L&T - Jharsuguda (G) Orissa 0.7 0.6 0.5 0.8 0.9 0.9 0.9
L&T Hirmi Chhattisgarh 1.9 1.3 1.3 1.4 1.4 1.7 1.7
Magdalla (G) Gujarat 0.4 0.1 0.2 0.5 0.6 0.6 0.5
Ratnagiri (G) Maharashtra 0.3 0.2 0.1 0.2 0.2 0.3 0.4
WBCW (G) West Bengal 0.1 0.7 0.7 0.8 1.0 1.1 1.1
Zuari Inds. 1.7 2.2 2.4 2.5 2.8 3.2 3.3
Sri Vishnu Cement Andhra Pradesh 0.1 0.7 0.7 0.8 1.1 1.2 1.3
Zuari Cement Andhra Pradesh 1.6 1.6 1.7 1.7 1.8 2.0 2.0
Meghalaya Cement Meghalaya Cement - - - - - 0.2 0.5
Total 102.0 111.4 117.4 127.6 140.5 155.4 167.6
G: Grinding unit
Notes
1) Figures for Modi Cement and Raasi Cement from 1998-99, have been included in Gujarat Ambuja as Ambuja Cement Eastern and in
India Cement as Raasi Cement (India) respectively.
3) Figures of Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with
those of Grasim, Ultratech Cement, Grasim and Lafarge, respectively.
4) Raymond Woollens has been acquired by Lafarge in 2000.
6) Idcol Cement was acquired by ACC in December 2003
5) Khalari, HMP, UP Cement have been excluded owing to nil production for the last 6 years.
Source: CMA

Table 6: Cement - Player-wise operating rates (large units)
(per cent) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ACC 77.0 86.4 91.3 91.1 96.0 92.8 100.5
Andhra Cements 64.8 59.2 36.9 43.0 18.4 35.3 64.4
Binani Cement 116.4 128.0 119.3 104.2 105.3 110.4 134.5
Birla Corp 103.8 101.0 99.8 105.0 100.7 90.9 91.3
CCI 15.8 13.9 15.0 20.9 24.5 26.6 23.6
DLF Cement - - - - - - -
Dalmia Cement 98.2 117.9 103.3 104.8 126.3 78.2 94.1
Grasim 81.9 86.9 87.5 91.8 102.3 107.0 109.7
Gujarat Sidhee Cement 60.7 45.0 49.6 45.9 77.6 106.6 105.6
Idcol Cement 74.0 88.2 79.1 - - - -
India Cements 69.9 65.6 72.2 73.8 95.7 99.4 104.0
Indo Rama Cement 50.1 55.5 56.8 60.2 48.9 55.0 66.5
JK Corp. 85.1 96.3 101.4 109.5 119.4 127.6 106.8
JK Synthetics 84.0 96.5 91.7 101.3 102.7 93.6 90.7
JK Udaipur Udyog 79.1 - - - - - -
J and K 67.9 56.9 59.6 70.2 79.7 77.2 77.6
Jaiprakash Inds 102.4 101.9 102.3 96.9 103.5 107.0 106.5
KCP 62.7 86.3 81.0 84.3 92.4 94.8 111.7
Kalyanpur Cement 62.5 56.2 33.9 36.9 45.6 58.7 53.9
Kanoria Inds 58.4 48.2 58.3 40.7 30.9 4.7 0.0
Kesoram Inds 107.6 119.0 136.5 148.4 118.6 121.6 104.2
Lafarge 85.5 83.1 75.2 87.8 91.5 93.5 99.5
Madras Cements 79.8 69.1 64.6 67.0 83.2 112.1 102.2
Malabar Cements 93.7 97.7 108.8 90.5 110.1 100.2 91.8
Mangalam Cement 136.2 141.6 134.1 136.9 161.0 141.7 150.7
Mawnluh Cherra 52.8 51.8 49.6 46.6 50.1 50.6 42.2
Mysore Cement 84.9 98.8 94.7 88.0 97.6 101.9 105.2
My Home Industries - - - - 101.5 110.2 93.1
OCL India 104.2 115.4 95.0 105.5 124.2 112.3 111.1
Orient Cement 70.3 76.4 85.2 86.3 88.0 90.8 97.1
Panyam Cements 25.2 6.6 19.8 14.3 1.7 0.0 81.5
Penna Cement 77.9 100.5 115.2 80.5 82.3 107.1 112.1
Prism Cement 80.0 77.2 81.1 75.8 84.8 87.6 96.4
Priyadarshini 119.8 116.1 49.3 112.4 96.4 104.8 107.7
Sanghi Industries - - 26.3 46.5 70.3 92.8 96.9
Saurashtra Cement 72.7 65.0 54.2 67.9 91.9 116.9 120.5
Shree Cement 112.5 105.6 109.3 116.0 99.6 106.6 105.5
Shriram Cements 138.5 147.5 147.5 160.3 196.8 184.6 184.5
Sri Vishnu Cement - - - - - - -
Tisco - - - - - - -
Continued….

…continued
(per cent) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Ultratech Cement Ltd 78.7 73.8 71.7 76.0 80.6 86.1 88.1
Zuari Inds 77.5 66.1 70.0 74.4 83.5 94.0 96.5
Total 78.5 80.1 80.2 82.2 88.9 93.0 95.4
G: Grinding unit
Notes
1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja Cement
Eastern and India Cements as Raasi Cement, respectively.
2) Figures for Indian Rayon, Narmada Cement, Shree Digvijay, Sri Vishnu Cement and Tisco from 1999-2000 have been
included with those of Grasim, Ultratech Cement, Grasim, India Cements and Lafarge, respectively.
3) Raymond Woollens has been acquired by Lafarge in 2000.
5) Khalari, HMP, UP Cement have been excluded owing to nil production for the last 6 years.
Source: CMA
Table 7: Cement - Variety-wise production

(million tonnes) OPC Percentage PPC Percentage PBFS Percentage Others1 Percentage Total
of total of total of total of total
Seventh Plan
1985-86 13.1 40.7 14.4 45.1 4.4 13.6 0.2 0.6 32.1
1986-87 18.0 51.8 12.5 35.9 4.1 11.7 0.2 0.6 34.8
1987-88 23.0 61.6 9.7 25.9 4.4 11.8 0.3 0.7 37.4
1988-89 27.9 66.7 8.8 21.1 4.8 11.5 0.3 0.7 41.8
1989-90 30.6 71.3 7.5 17.4 4.6 10.8 0.3 0.6 42.9
Annual plan
1990-91 31.9 69.7 8.9 19.4 4.8 10.4 0.2 0.5 45.8
1991-92 35.4 70.0 9.2 18.2 5.6 11.0 0.4 0.7 50.6
Eighth Plan
1992-93 36.5 71.9 8.3 16.4 5.4 10.6 0.6 1.1 50.7
1993-94 38.7 71.5 9.2 17.1 5.3 9.8 0.9 1.6 54.1
1994-95 41.2 70.6 10.7 18.3 5.8 10.0 0.7 1.1 58.4
1995-96 45.0 69.8 11.8 18.2 7.1 11.0 0.6 1.0 64.5
1996-97 48.5 69.2 13.6 19.4 7.3 10.5 0.6 0.8 70.0
Ninth Plan
1997-98 54.3 70.8 14.5 18.9 7.5 9.7 0.5 0.7 76.7
1998-99 57.4 70.3 15.6 19.1 8.2 10.1 0.5 0.6 81.7
1999-2000 62.8 67.0 21.3 22.0 9.4 10.0 0.8 0.8 94.2
2000-01 58.1 62.0 24.5 26.2 10.3 11.1 0.7 0.8 93.6
2001-02 57.7 56.3 32.3 31.5 11.9 11.6 0.5 0.5 102.4
Tenth Plan
2002-03 56.1 50.3 43.1 38.7 11.6 10.4 0.6 0.5 111.3
2003-04 53.5 45.5 52.1 44.4 11.3 9.6 0.6 0.5 117.5
2004-05 56.0 43.9 60.2 47.2 10.7 8.4 0.6 0.5 127.6
2005-06 55.3 39.5 73.4 52.5 11.2 8.0 0.1 0.1 139.9
2006-07 48.6 31.2 93.6 60.1 12.9 8.3 0.7 0.4 155.7
Eleventh Plan
2007-08 43.8 26.0 111.1 66.0 13.5 8.0 0.0 0.0 168.3
1
Others includes sulphate resistant cement; Indian railway standard-40; low heat and special cement
Source: CMA

Table 8: Cement - Company-wise changes in product mix
(per cent) 2001-02 2002-03 2003-04
1 1
OPC PPC PBFSC Others OPC PPC PBFSC Others OPC PPC PBFSC Others1
ACC 20.2 59.2 20.5 0.1 18.1 65.2 16.5 0.2 16.1 68.1 15.6 0.2
Andhra Cements 66.1 14.9 18.9 - 53.7 22.5 23.8 - 35.6 27.3 37.0 -
Binani Cement 100.0 - - - 83.5 16.5 - - 78.3 21.7 - -
Birla Corp 50.5 36.3 12.6 0.6 43.9 44.0 12.1 - 37.3 49.8 12.9 -
CCI 94.3 5.7 - - 91.9 8.1 - - 85.3 9.4 - 5.3
Century Textiles 32.8 58.6 8.5 - 25.9 63.3 10.8 - 25.1 67.6 7.3 -
Chettinad Cement 31.4 64.7 2.1 1.9 33.6 62.3 2.3 1.8 34.4 62.6 0.7 2.4
Dalmia Cement 46.9 48.3 1.0 3.8 53.1 41.7 0.4 4.8 51.3 42.6 0.2 5.9
DLF Cement - - - - - - - - - - - -
Grasim 79.9 9.9 8.0 2.1 65.5 24.9 7.0 2.5 54.9 36.2 6.5 2.4
Ambuja Cement Ltd 60.0 33.8 6.0 0.2 63.4 32.8 3.7 0.1 61.1 35.6 3.3 0.1
Gujarat Sidhee Cement 98.6 1.4 - - 92.0 8.0 - - 89.3 10.7 - -
Idcol Cement 31.5 1.0 67.5 - 27.3 1.1 71.6 - 23.1 9.0 67.9 -
India Cements 65.5 34.5 - 0.04 64.5 35.5 - - 60.4 39.6 - -
Indo Rama Cement - - 100.0 - - - 100.0 - - - 100.0 -
J and K 100.0 - - - 100.0 - - - 100.0 - - -
Jaiprakash Inds 40.2 58.4 - 1.4 30.9 67.3 - 1.8 25.8 72.4 - 1.8
JK Corp 82.0 18.0 - - 80.3 19.7 - - 64.8 35.2 - -
JK Synthetics 87.2 10.9 - 1.9 85.7 14.3 - - 68.6 31.4 - -
JK Udaipur Udyog 100.0 - - - 100.0 - - - - - - -
Kalyanpur Cement 10.5 - 89.5 - 10.7 - 89.3 - 9.1 - 90.9 -
Kanoria Inds 4.5 - 95.5 - 5.4 - 94.6 - 9.1 - 90.9 -
KCP 92.3 7.7 - - 71.5 28.5 - - 51.2 48.8 - -
Kesoram Inds 95.4 4.6 - - 86.9 13.1 - - 69.7 30.3 - -
Lafarge 11.4 45.3 43.2 - 11.4 48.2 40.4 - 12.5 46.4 41.1 -
Continued…

…continued
(per cent) 2004-05 2005-06 2006-07

OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1
ACC 17.6 63.9 18.4 0.1 16.9 64.4 18.7 0.0 11.9 68.0 20.2 0.0
Andhra Cements 31.1 30.6 38.3 - 33.3 33.3 33.3 0.0 38.0 35.6 26.4 0.0
Binani Cement 71.3 28.7 - - 60.9 39.1 0.0 0.0 51.2 48.8 0.0 0.0
Birla Corp 36.4 50.0 13.6 - 30.7 55.9 13.8 0.0 19.2 69.6 11.0 0.2
CCI 88.7 7.3 - 4.0 94.3 6.8 0.0 0.0 85.6 6.9 0.0 7.5
Century Textiles 11.1 83.5 5.4 - 8.5 85.2 6.3 0.0 5.0 87.4 7.6 0.0
Chettinad Cement 24.3 74.6 - 1.0 12.7 84.1 3.6 0.0 8.8 80.6 10.2 0.5
Dalmia Cement 44.3 48.6 0.2 6.9 32.8 57.3 6.0 1.4 29.3 65.8 0.0 4.9
DLF Cement - - - -
Grasim 54.3 41.6 2.1 2.0 50.6 46.2 3.1 0.3 38.6 56.1 3.8 1.4
Ambuja Cement Ltd 59.9 38.5 1.6 - 38.2 61.6 0.0 0.0 24.4 75.4 0.0 0.3
Gujarat Sidhee Cement 91.8 8.2 - - 88.6 12.8 0.0 0.0 80.5 19.5 0.0 0.0
Idcol Cement - - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
India Cements 53.7 46.2 - - 54.4 46.0 0.0 0.0 47.3 52.7 0.0 0.0
Indo Rama Cement - - 100.0 - 0.0 0.0 100.0 0.0 0.0 0.0 100.0 0.0
J and K 100.0 - - - 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0
Jaiprakash Inds 29.1 69.5 - 1.5 30.0 69.2 0.0 0.0 23.5 74.8 0.0 1.7
JK Corp 66.8 33.2 - - 54.5 46.1 0.0 0.0 38.0 62.1 0.0 0.0
JK Synthetics 76.0 24.0 - - 61.5 38.7 0.0 0.0 0.0 0.0 0.0 0.0
JK Udaipur Udyog - - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Kalyanpur Cement 7.7 0.0 92.3 - 0.0 0.0 100.0 0.0 1.6 34.6 63.9 0.0
Kanoria Inds 3.3 0.0 96.7 - 0.0 0.0 100.0 0.0 0.0 0.0 100.0 0.0
KCP 54.3 45.7 - - 51.0 49.0 0.0 0.0 96.8 3.2 0.0 0.0
Kesoram Inds 55.9 44.1 - - 53.5 46.3 0.0 0.0 49.7 50.3 0.0 0.0
Lafarge 11.5 52.4 36.1 0.0 10.5 56.9 32.4 0.0 5.2 62.1 32.7 0.0
continued…

…continued
(per cent) 2001-02 2002-03 2003-04

1 1
OPC PPC PBFSC Others OPC PPC PBFSC Others OPC PPC PBFSC Others1
Madras Cements 13.0 77.4 9.6 - 5.0 92.6 2.4 - 8.7 89.8 1.5 -
Malabar Cements 10.3 89.7 - - 6.3 93.6 0.2 - 9.5 80.5 10.0 -
Mangalam Cement 86.2 13.8 - - 88.0 12.0 - - 76.0 24.0 - -
Mawnluh Cherra 100.0 - - - 100.0 - - - 100.0 - - -
Mysore Cement 14.4 69.8 15.8 - 10.6 72.8 16.6 - 1.4 80.4 18.1 -
Narmada Cement - - - - - - - - - - - -
OCL India 3.0 2.9 90.7 3.4 6.8 12.2 80.9 0.2 7.3 13.7 78.7 0.3
Orient Cement 99.7 0.3 - - 91.7 8.3 - - 72.2 27.8 - -
Panyam Cements 100.0 - - - 85.5 1.2 13.3 - 100.0 - - -
Penna Cement 96.8 - 3.2 - 96.8 - 3.2 - 78.5 - 21.5 -
Prism Cement 76.5 23.5 - - 61.5 38.5 - - 51.0 49.0 - -
Priyadarshini 94.1 0.3 5.5 - 74.7 15.1 10.2 - 92.8 5.9 1.3 -
Raymond Woollens - - - - - - - - - - - -
Sanghi Industries Ltd - - - - - - - - 100.0 - - -
Saurashtra Cement 96.6 0.4 0.1 3.0 96.0 0.3 0.3 3.4 92.5 0.9 0.8 5.8
Shree Cement 74.9 25.1 - - 72.7 27.3 - - 62.6 37.4 - -
Shree Digvijay - - - - - - - - - - - -
Shriram Cement 68.9 29.3 - 1.8 63.4 31.6 - 5.0 60.1 36.6 - 3.3
Sri Vishnu Cement - - - - - - - - - - - -
Tamil Nadu Cement 63.4 36.6 0.0 - 79.8 20.2 0.1 - 77.1 22.8 0.0 0.0
Ultratech Cement Ltd 68.3 15.9 15.4 0.4 56.6 27.8 15.3 0.3 53.7 33.1 13.1 0.1
Zuari Inds. 87.1 12.9 - - 73.1 26.9 - - 63.2 36.8 - -
continued…

continued…
(per cent) 2004-05 2005-06 2006-07

OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1
Madras Cements 9.8 89.4 0.9 - 13.6 87.3 0.1 0 17.3 81.8 0.9 0.0
Malabar Cements 5.1 94.0 0.9 - 0.0 100.0 0.0 0.0 1.0 98.4 0.6 0.0
Mangalam Cement 64.0 36.0 - - 59.4 41.4 0.0 0.0 47.2 52.8 0.0 0.0
Mawnluh Cherra 100.0 - - - 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0
Mysore Cement 0.5 81.8 17.7 - 0.0 85.0 15.0 0.0 0.3 85.9 13.9 0.0
Narmada Cement - - - - - - - - - - - -
OCL India 1.4 19.3 73.8 5.5 0.1 22.2 81.0 0.0 0.1 0.0 97.8 2.1
Orient Cement 66.5 33.5 - - 66.7 33.1 0.0 0.0 41.4 58.6 0.0 0.0
Panyam Cements 100.0 - - - 0.0 0.0 0.0 0.0 73.1 26.9 0.0 0.0
Penna Cement 78.9 2.6 17.5 0.9 46.7 7.5 45.6 0.0 37.7 12.8 49.5 0.0
Prism Cement 47.2 52.8 - - 41.0 58.9 0.0 0.0 13.0 87.0 0.0 0.0
Priyadarshini 77.8 22.2 - - 40.0 60.0 0.0 0.0 36.1 63.9 0.0 0.0
Raymond Woollens - - - - - - - - - - - -
Sanghi Industries Ltd 100.0 - - 4.4 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0
Saurashtra Cement 91.7 3.2 0.6 - 100.0 0.0 0.0 0.0 91.4 8.6 0.0 0.0
Shree Cement 59.6 40.4 - - 46.0 54.0 0.0 0.0 23.5 76.5 0.0 0.0
Shree Digvijay - - - - - - - - - - - -
Shriram Cement 27.5 69.7 - 2.7 25.0 75.0 0.0 0.0 25.2 74.8 0.0 0.0
Sri Vishnu Cement - - - - - - - - - - - -
Tamil Nadu Cement 76.6 23.4 - - 76.9 19.0 4.00 0.00 74.4 25.6 0.0 0.0
Ultratech Cement Ltd 50.5 38.3 11.2 - 53.6 39.5 7.1 0.0 45.2 47.9 6.9 0.0
Zuari Inds. 70.2 29.7 0.1 - 71.3 25.4 2.6 0.0 64.1 35.9 0.0 0.0
My Home Industries - - - - 59.9 39.9 0.0 0.0 47.0 53.0 0.0 0.0
Meghalaya Cement - - - - - - - - 6.9 93.1 0.0 0.0
OPC: Ordinary Porland Cement, PPC: Portland Pozzolana Cement, PBFSC: Portland Blast Furnace Slag Cement
1
Others includes sulphate resistant cement, Indian railway standard-40, low heat and special cement
Notes
1) Since 1999-2000, figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco have been included with those of Grasim,
Ultratech Cement and Lafarge, respectively.
Source: CMA
Table 9: Cement - Trends in rail lead distance and proportion of rail despatches
Rail lead Proportion of rail to total
(kms) (per cent)
2000-01 581 39.0
2001-02 563 35.0
2002-03 537 33.0
2003-04 537 34.0
2004-05 537 33.0
2005-06 562 36.0
2006-07 567 38.0
Source: CMA

Table 10: Company-wise cement despatches by rail and road
1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
(per cent) Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road
ACC 51 49 47 53 46 54 49 51 47 53 47 53 46 54 50 50
Andhra Cements 16 84 7 93 9 91 12 88 18 82 21 79 10 90 9 91
Binani Cement 9 91 6 94 3 97 5 95 11 89 6 94 10 90 15 85
Birla Corp 36 64 37 63 35 65 36 64 34 66 29 71 31 69 32 68
Century Textiles 69 31 70 30 71 29 72 28 67 33 65 35 66 34 67 33
Chettinad Cement 27 73 29 71 17 83 23 77 28 72 18 82 23 77 29 71
Dalmia Cement 20 80 26 74 24 76 15 85 19 81 16 84 22 78 20 80
Grasim 47 53 39 61 33 67 33 67 34 66 34 65 35 65 44 56
Ambuja Cement Ltd 19 81 22 78 12 88 11 89 12 88 12 88 20 80 25 55
Gujarat Sidhee Cement 19 81 8 92 17 83 - 100 - 100 0 94 0 100 6 65
Idcol Cements 54 46 53 47 59 41 66 34 68 32 - -
India Cements 31 69 30 70 23 77 18 82 21 79 22 78 29 71 30 70
Jaiprakash Inds 32 68 33 67 34 66 26 74 31 69 34 66 41 59 46 54
Kesoram Inds 56 44 57 43 52 48 65 35 67 33 63 37 63 37 64 36
Lafarge 60 40 78 22 80 20 77 23 77 23 79 21 76 24 79 21
Madras Cements 6 94 8 92 6 94 2 98 5 95 6 94 16 84 23 77
Mangalam Cement 63 37 63 37 59 41 59 41 56 44 54 46 57 43 65 35
Mysore Cement 54 46 58 42 64 36 63 37 65 35 69 31 68 32 75 25
OCL India 50 50 47 53 45 55 34 66 49 51 57 43 61 39 67 33
Panyam Cements - 100 - 100 - 100 - 100 - 100 0 100 0 100 0 100
Sanghi Industries - - - - - - - - 4 96 18 77 16 84 9 47
Saurashtra Cement 11 89 11 89 6 94 1 99 7 93 4 59 1 99 18 35
Shree Cement 66 34 60 40 60 40 46 54 24 76 15 85 12 88 28 72
Shree Digvijay - - - - - - - - - - - -
Shriram Cement 70 30 41 59 39 61 43 57 39 61 30 70 31 69 36 64
Tamil Nadu Cement 7 93 5 95 4 96 - 100 2 98 3 97 2 98 9 91
Ultratech Cement Ltd 40 60 41 59 38 62 33 67 35 65 38 50 51 49 41 45
Zuari Inds 65 35 54 46 42 58 37 63 48 52 36 64 31 69 39 61
Total 41 59 39 61 35 65 33 67 34 66 33 66 36 64 38 57
Note
Despatches by road include those by sea.
Source: CMA

Table 11: Cement - Aggregate demand-supply
(million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Opening stocks 4.4 6.3 6.6 5.4 5.9 6.1 5.6 5.9 6.7
(Cement and clinker)
Production 94.2 93.4 102.0 111.4 117.4 127.6 140.5 155.7 168.3
North 21.3 21.1 23.8 26.6 28.7 30.9 34.5 37.2 41.5
South 28.9 27.3 29.5 33.4 36.1 36.8 43.6 49.9 53.6
East 6.2 6.6 16.7 16.7 16.7 18.7 20.0 21.8 22.7
West 37.8 38.4 32.1 34.7 36.0 38.9 42.3 46.7 50.5
Demand (domestic) 91.9 90.0 99.0 107.6 113.8 121.1 135.6 149.0 164.0
North 28.7 28.1 31.5 34.1 36.3 38.4 34.6 45.8 49.8
South 25.7 23.8 26.1 29.7 31.5 30.8 44.4 44.0 48.7
East 12.0 12.9 16.3 17.0 17.5 20.3 19.8 24.0 25.3
West 25.5 25.2 25.1 26.9 28.6 31.6 36.8 35.2 40.2
Exports 3.1 5.1 5.0 6.9 8.1 9.9 9.2 5.9 3.7
Closing stocks 6.3 6.6 5.4 5.9 6.1 5.6 5.9 6.7 7.4
Capacity (available)1 109.7 115.9 130.0 139.0 146.4 153.6 158.1 167.1 175.7
North 24.8 26.0 28.4 31.0 32.4 35.1 37.0 40.6 43.6
South 31.6 33.5 41.3 44.6 46.3 46.9 49.8 53.2 55.8
East 8.8 8.9 21.8 22.3 23.0 23.4 24.0 25.2 26.5
West 44.6 47.4 38.5 41.0 44.8 47.0 47.3 48.1 49.8
Capacity utilisation (per cent) 85.9 80.6 78.5 80.1 80.2 83.1 88.9 93.1 95.8
1
Available capacity is the monthly add-up capacity
Notes
1) Operating rate has been calculated as cement production divided by available capacity.
2) Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence,
figures for the regions (East and West) for 2001-02 are not comparable with earlier years with respect to capacity, demand
and production.
Source: CMA

Table 12: Cement - State-wise demand-supply
2000-01 2001-02 2002-03 2003-04
1 1 1
(million tonnes) Capacity Demand Capacity Demand Capacity Demand Capacity1 Demand
North 26.04 28.05 28.42 31.48 31.00 34.06 32.38 36.26
Chandigarh - 0.35 - 0.32 - 0.22 - 0.19
Delhi 0.50 2.67 0.50 2.94 0.50 2.97 0.50 3.39
Haryana 0.17 2.85 0.17 3.26 0.17 3.45 0.17 3.72
Himachal Pradesh 3.76 1.06 4.06 1.25 4.06 1.43 4.06 1.38
Jammu and Kashmir 0.20 0.73 0.20 0.79 0.20 0.71 0.20 0.81
Punjab 1.29 4.08 2.17 4.89 2.84 5.25 3.04 5.40
Rajasthan 16.07 4.74 17.07 5.21 18.43 6.16 18.89 6.61
Uttar Pradesh 4.05 11.58 4.25 12.00 4.80 12.74 5.52 13.40
Uttaranchal - - - 0.83 - 1.13 - 1.36
West 47.44 25.23 38.50 25.15 41.01 26.91 44.78 28.58
Goa - 0.29 - 0.34 - 0.36 - 0.49
Gujarat 12.49 6.34 13.43 7.53 14.01 7.38 17.12 7.84
Madhya Pradesh 26.67 5.50 15.98 4.05 16.19 5.01 16.19 5.57
Maharashtra 8.27 13.10 9.10 13.23 10.82 14.16 11.47 14.68
East 8.90 12.90 21.80 16.30 22.34 16.96 22.98 17.47
Assam 0.20 0.93 0.20 0.83 0.20 0.87 0.20 1.02
Bihar 4.63 4.15 1.62 3.28 1.62 3.20 1.62 3.13
Chhattisgarh - - 11.25 1.47 10.95 1.37 10.25 1.42
Jharkhand - - 3.47 1.40 3.47 1.77 4.58 2.03
Orissa 2.75 2.63 2.76 2.93 2.76 3.45 3.01 3.38
West Bengal 1.13 4.66 2.29 5.94 3.12 5.63 3.12 5.78
Meghalaya 0.20 0.52 0.20 0.45 0.20 0.67 0.20 0.72
South 33.53 23.80 41.27 26.08 44.61 29.66 46.25 31.47
Andhra Pradesh 17.59 5.87 19.54 6.75 20.02 7.75 21.10 8.01
Karnataka 6.92 4.98 9.74 6.16 9.89 7.13 10.19 8.23
Kerala 0.42 4.66 0.42 4.56 0.42 5.36 0.42 5.82
Tamil Nadu 8.60 8.12 11.57 8.32 14.28 9.07 14.55 9.10
2
Others - 0.17 - 0.29 - 0.35 - 0.31
Total 115.92 89.98 130.00 99.00 138.96 107.59 146.39 113.8
Continued….

…continued
2004-05 2005-06 2006-07 2007-08

(million tonnes) Capacity1 Demand Capacity1 Demand Capacity1 Demand Capacity1 Demand
North 35.12 38.37 37.05 41.26 40.59 45.78 43.61 49.79
Chandigarh - 0.19 - 0.26 - 0.37 - 0.42
Delhi 0.50 3.75 0.50 3.50 0.50 2.97 0.50 3.52
Haryana 0.17 4.25 0.17 4.93 0.17 5.59 0.28 6.96
Jammu and Kashmir 0.20 0.95 0.20 1.01 0.20 1.24 0.20 1.26
Punjab 3.91 5.23 4.20 5.66 4.20 6.50 4.25 6.60
Rajasthan 19.52 6.97 20.33 8.27 22.07 9.13 24.82 10.33
Uttar Pradesh 6.76 14.12 7.32 14.20 7.32 15.90 7.37 16.28
Uttaranchal - 1.47 - 1.83 - 2.22 - 2.54
West 47.05 31.62 47.31 32.76 47.81 35.20 48.29 40.21
Goa - 0.76 - 0.49 - 0.43 - 0.49
Gujarat 17.63 8.71 17.63 9.12 17.63 10.07 17.76 11.68
Madhya Pradesh 17.44 6.29 17.69 6.37 18.19 6.51 18.42 7.48
Maharashtra 11.98 15.85 12.00 16.78 12.00 18.19 12.11 20.56
East 23.43 20.33 24.00 22.66 25.23 23.99 26.55 25.33
Assam 0.20 1.12 0.20 1.09 0.20 1.04 0.20 1.08
Bihar 1.62 3.80 1.62 4.36 1.62 4.49 1.62 4.54
Chhattisgarh 10.67 2.06 10.82 3.08 10.82 3.52 10.97 3.81
Jharkhand 4.58 2.31 4.66 2.63 4.83 2.63 4.83 2.68
Orissa 3.04 3.86 0.20 0.77 0.20 0.94 0.29 1.24
West Bengal 3.12 6.22 3.04 4.15 3.43 4.43 3.58 4.72
Meghalaya 0.20 0.95 3.46 6.59 4.12 6.93 5.06 7.27
South 46.85 30.75 49.77 38.88 53.17 44.02 55.80 48.67
Andhra Pradesh 21.48 7.77 23.87 0.08 24.73 12.59 25.86 14.74
Karnataka 10.19 7.64 10.72 11.46 10.99 11.12 12.41 11.80
Kerala 0.62 6.07 0.62 9.38 0.62 6.97 0.62 7.13
Tamil Nadu 14.56 8.97 14.56 6.50 16.83 12.84 16.91 14.46
Others2 - 0.30 - 0.33 - 0.50 - 0.53
Total 153.59 121.07 158.13 135.56 166.80 148.99 174.25 164.00
Notes
1
Capacity is available cement capacity, which is the monthly add-up of capacity
2
Includes Pondicherry, and the Andaman and Nicobar Islands
Source: CMA

Table 13: Cement - State-wise trends in demand
(million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
North 28.7 28.1 31.5 34.1 36.3 38.4 41.3 45.8 49.8
Chandigarh 0.3 0.3 0.4 0.2 0.2 0.2 0.3 0.4 0.4
Delhi 2.8 2.7 2.9 3.0 3.4 3.7 3.5 3.0 3.5
Haryana 2.8 2.8 3.3 3.4 3.7 4.2 4.9 5.6 7.0
Himachal Pradesh 0.9 1.1 1.2 1.4 1.4 1.5 1.6 1.9 1.9
Jammu and Kashmir 0.6 0.7 0.8 0.7 0.8 0.9 1.0 1.2 1.3
Punjab 4.3 4.1 4.9 5.3 5.4 5.2 5.7 6.5 6.6
Rajasthan 5.2 4.7 5.2 6.2 6.6 7.0 8.3 9.1 10.3
Uttar Pradesh 11.8 11.6 12.0 12.7 13.4 14.1 14.2 15.9 16.3
Uttaranchal - - 0.8 1.1 1.4 1.5 1.8 2.2 2.5
West 25.5 25.2 25.1 26.9 28.6 31.6 32.8 35.2 40.2
Goa 0.3 0.3 0.3 0.4 0.5 0.8 0.5 0.4 0.5
Gujarat 7.5 6.3 7.5 7.4 7.8 8.7 9.1 10.1 11.7
Maharashtra 5.6 5.5 4.0 5.0 5.6 6.3 6.4 6.5 7.5
Madhya Pradesh 12.1 13.1 13.2 14.2 14.7 15.9 16.8 18.2 20.6
East 12.0 12.9 16.3 17.0 17.5 20.3 22.7 24.0 25.3
Assam 0.9 0.9 0.8 0.9 1.0 1.1 1.1 1.0 1.1
Bihar 3.9 4.2 3.3 3.2 3.1 3.8 4.4 4.5 4.5
Chhattisgarh - - 1.5 1.4 1.4 2.1 3.1 3.5 3.8
Jharkhand - - 1.4 1.8 2.0 2.3 2.6 2.6 2.7
Meghalaya 0.4 0.5 0.5 0.7 0.7 0.9 0.8 0.9 1.2
Orissa 2.1 2.6 2.9 3.5 3.4 3.9 4.1 4.4 4.7
West Bengal 4.7 4.7 5.9 5.6 5.8 6.2 6.6 6.9 7.3
South 25.6 23.8 26.1 29.7 31.5 30.8 38.9 44.0 48.7
Andaman and Nicobar 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Andhra Pradesh 7.7 5.9 6.7 7.7 8.0 7.8 11.5 12.6 14.7
Karnataka 4.9 5.0 6.2 7.1 8.2 7.6 9.4 11.1 11.8
Kerala 4.8 4.7 4.6 5.4 5.8 6.1 6.5 7.0 7.1
Pondicherry 0.1 0.1 0.2 0.2 0.2 0.3 0.3 0.4 0.4
Tamil Nadu 8.1 8.1 8.3 9.1 9.1 9.0 11.1 12.8 14.5
Total 91.7 90.0 99.0 107.6 113.8 121.1 135.6 149.0 164.0
Note
Regional classification of states has changed from 2001-02, due to the formation of the new state of
Chattisgarh. Hence, figures for the regions (east and west) for 2001-02 are not comparable with the
earlier years with respect to capacity, demand and production.
Source: CMA

Table 14: Cement - State-wise trends in demand growth
(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
North 20.8 -2.3 12.2 8.2 6.5 5.8 7.5 10.9 8.8
Chandigarh -5.5 16.9 1.2 -36.9 -12.7 -2.1 39.9 38.3 15.6
Delhi 11.1 -5.1 10.3 0.8 14.1 10.7 -6.6 -15.2 18.5
Haryana 20.8 3.2 14.3 5.9 8.0 14.1 16.0 13.4 24.6
Himachal Pradesh 26.7 12.6 14.7 17.7 -3.4 5.0 9.6 17.4 1.0
Jammu and Kashmir -4.3 15.4 8.1 -10.3 14.6 17.1 7.0 22.3 1.4
Punjab 14.8 -5.0 19.8 7.5 2.8 -3.0 8.0 14.9 1.5
Rajasthan 14.8 -8.0 9.9 18.3 7.2 5.4 18.7 10.3 13.1
Uttar Pradesh 31.2 -2.1 3.6 6.1 5.2 5.3 0.6 11.9 2.4
Uttaranchal - - - 35.8 20.4 8.4 24.4 21.6 14.3
West 6.3 -0.9 -0.3 7.0 6.2 10.6 3.6 7.5 14.2
Goa -4.9 15.4 15.6 5.9 37.4 55.0 -36.4 -11.4 14.3
Gujarat -9.4 -15.6 18.8 -2.0 6.3 11.0 4.7 10.4 15.9
Maharashtra 17.1 -1.4 -26.4 23.8 11.1 13.0 1.3 2.2 15.0
Madhya Pradesh 10.8 8.1 1.0 7.0 3.7 8.0 5.9 8.4 13.0
East 22.3 7.9 26.4 4.1 3.0 16.3 11.5 5.9 5.6
Assam 37.0 9.5 -11.1 5.0 17.1 9.7 -2.9 -4.3 3.9
Bihar 19.8 5.1 -20.9 -2.4 -2.4 21.5 14.7 3.1 1.0
Chhattisgarh - - - -6.7 3.9 44.6 49.6 14.3 8.2
Jharkhand - - - 26.1 14.9 14.1 13.7 0.1 1.8
Meghalaya 38.2 40.8 -13.9 48.1 7.7 32.3 -19.1 22.9 31.1
Orissa 9.3 27.6 11.6 17.8 -2.2 14.4 7.4 6.9 6.5
West Bengal 27.4 -1.4 27.2 -5.1 2.7 7.6 5.9 5.1 5.0
South 15.6 -7.0 9.6 13.7 6.1 -2.3 26.4 13.2 10.6
Andaman and Nicobar -2.9 187.4 61.6 -5.0 -37.2 -26.1 51.5 44.8 -3.0
Andhra Pradesh 21.4 -23.8 14.9 14.8 3.4 -2.9 47.5 9.8 17.1
Karnataka 14.0 2.1 23.8 15.8 15.4 -7.2 22.8 18.5 6.2
Kerala 17.0 -2.3 -2.3 17.7 8.6 4.3 7.0 7.3 2.2
Pondicherry -6.1 26.8 80.9 37.6 -1.1 3.3 31.3 18.1 8.9
Tamil Nadu 11.1 -0.1 2.5 8.9 0.3 -1.4 24.1 15.4 12.6
Total 15.2 -1.9 10.0 8.7 5.8 12.1 12.0 9.9 10.1
Note
Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence,
figures for the regions (East and West) for 2001-02 are not comparable with the earlier years with respect to capacity,
demand and production.
Source: CMA

Table 15: Housing segment - Budget allocation
(Rs million) Housing, urban and Per cent of total
regional development plan outlay
Third plan (1961-66) 1,276 1.5
Annual plans (1966-69) 733 1.1
Fourth plan (1969-74) 2,702 1.7
Fifth plan (1974-79) 11,500 2.9
Annual plan (1979-80) 3,688 3.0
Sixth plan (1980-85) 28,391 2.6
Seventh plan (1985-90) 48,362 2.3
Annual plans (1990-92) 30,323 2.5
Eighth plan (1992-97) 138,043 2.7
Annual plan (1997-98) 21,175 1.6
Annual plan (1998-99) 31,435 2.1
Annual plan (1999-2000) 35,164 2.2
Annual plan (2000-01) 35,884 1.9
Annual plan (2001-02) 66,745 3.6
Annual plan (2002-03) 76,457 3.7
1
Annual plan (2003-04) 86,292 3.5
1
Annual plan (2004-05) 65,961 4.0
Tenth Plan (2002-06) 405,000 n.a.
1
Revised estimates
Source: Economic survey and Ministry of Housing and Urban Poverty Alleviation

Table 16: Cement - State-wise trends in per capita consumption
(kilograms) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Andhra Pradesh 106 127 125 134 164 179 181
Assam 36 31 40 38 42 36 37
Bihar 38 40 37 42 50 49 40
Chandigarh 387 269 200 185 228 314 396
Chhattisgarh 67 66 65 80 127 154 n.a
Delhi 204 213 211 248 217 196 199
Goa 203 191 230 413 288 211 259
Gujarat 149 156 160 177 173 188 219
Haryana 149 162 162 195 205 233 315
Himachal Pradesh 214 237 221 245 246 292 246
Jammu and Kashmir 80 73 71 89 92 106 112
Jharkhand 45 62 68 81 87 92 n.a
Karnataka 112 131 153 149 164 196 207
Kerala 141 160 178 187 193 205 207
Madhya Pradesh 74 87 95 112 108 110 83
Maharashtra 139 144 149 155 166 170 209
Orissa 81 94 95 108 114 117 124
Pondicherry 227 218 222 205 241 296 318
Punjab 185 219 214 215 214 240 258
Rajasthan 98 117 125 129 145 154 170
Tamil Nadu 136 146 147 152 172 195 221
Uttranchal 91 119 147 159 182 233 n.a
Uttar Pradesh 71 74 77 80 77 86 13
West Bengal 68 70 69 73 79 79 84
Others 39 45 59 66 60 67 n.a
Total 97 106 110 118 125 136 148
Note
Others include other north-eastern states.
Source: CMA and CRISIL Research
Figure 1: Cement - Capacity and production trends
18.0
16.0
14.0
12.0
(Million to nnes)
10.0
8.0
6.0
4.0
2.0
0.0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan F eb Mar
Capacity 2005-06 Capacity 2006-07 Capacity 2007-08

Production 2005-06 Production 2006-07 Production 2007-08
Source: CMA

Figure 2: Cement - Production and consumption trends
18.00
16.00
14.00
12.00
(Million tonnes)
10.00
8.00
6.00
4.00
2.00
0.00
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2005-06 Production 2005-06 Consumption 2006-07 Production
2006-07 Consumption 2007-08 Production 2007-08 Consumption
Source: CMA

2.0 State profile
Table 1: State profile - Andhra Pradesh

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 19.5 20.0 21.1 21.5 23.9 24.7 25.9
Production 13.2 13.3 14.0 14.3 18.6 22.0 24.4
Consumption 6.7 7.7 8.0 7.8 11.5 12.6 14.7
Growth (per cent) 14.9 14.8 3.4 -2.9 47.5 9.8 17.1
Gross surplus/(deficit) 6.4 5.5 6.0 6.5 7.2 9.4 9.6
Inflows
From other states (excluding Andhra Pradesh) 0.9 1.2 1.4 1.4 1.9 1.8 2.0
- Maharashtra 0.4 0.6 0.6 0.6 0.8 0.9 0.9
- Karnataka 0.4 0.5 0.7 0.7 1.0 1.0 1.0
- Madhya Pradesh 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Chhattisgarh 0.1 0.1 0.1 0.1 0.0 0.0 0.0
Andhra Pradesh 5.8 6.5 6.6 6.3 9.6 10.4 12.5
Outflows
To other states (excluding Andhra Pradesh) 7.7 6.8 7.3 7.8 10.1 11.3 11.8
- Tamil Nadu 2.3 1.8 1.7 1.6 2.3 2.7 3.1
- Karnataka 2.4 2.7 3.0 2.7 4.2 5.2 5.4
- Maharashtra 1.7 1.1 1.1 1.6 1.8 1.9 1.8
- Kerala 0.8 0.7 0.8 0.7 0.7 0.8 0.8
- Others 0.5 0.5 0.7 1.3 1.0 0.7 0.7
Andhra Pradesh 5.8 6.5 6.6 6.3 9.6 10.4 12.5
Adjusted surplus/(deficit) (0.4) (0.1) 0.1 (0.0) (1.4)
Market shares of key players
India Cements 23.3% 19.6% 18.8% 19.5% 20.3% 17.3% 14.6%
My Home Industries 0.0% 0.0% 0.0% 0.0% 10.2% 9.5% 10.9%
Zuari Inds. 6.0% 9.9% 10.9% 10.3% 9.0% 9.2% 8.5%
Penna Cement 4.4% 4.4% 5.0% 0%* 8.8% 9.6% 8.8%
Ultratech Cement 11.3% 10.3% 11.2% 11.3% 7.4% 6.9% 6.4%
Kesoram Inds. 7.0% 7.4% 7.5% 6.8% 5.9% 6.3% 7.6%
Orient Cement 6.7% 6.6% 7.0% 6.5% 5.3% 5.8% 6.0%
Madras Cements 9.8% 8.7% 7.9% 8.0% 6.4% 6.7% 6.6%
ACC 5.3% 6.9% 8.0% 8.4% 6.0% 4.5% 4.0%
Priyadarshini 6.2% 5.0% 2.8% 5.7% 4.9% 7.4% 6.5%
Prices in key centres in the state (Rs/bag)
Hyderabad 143 119 117 130 132 184 226
Note
Prices are wholesale prices for OPC-53 grade and are inclusive of excise, sales tax and octroi.
* In 2004-05, Details of penna cement were Not Available.
Source: CRISIL Research, CMA and Industry

Table 2: State profile - Chhattisgarh
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 11.3 11.0 10.2 10.7 10.8 10.8 11.0
Production 8.6 7.1 7.3 8.3 8.6 9.4 9.9
Consumption 1.5 1.4 1.4 2.1 3.1 3.5 3.8
Growth (per cent) - -6.7 3.9 44.6 49.6 14.3 8.2
Inflows
From other states (excluding Chhattisgarh) 0.0 0.0 0.0 0.0 0.1 3.2 3.5
- Chhattisgarh 1.5 1.4 1.4 2.0 3.0 0.4 0.3
Outflows
To other states (excluding Chhattisgarh) 7.0 5.6 5.8 6.3 5.5 6.0 5.7
-Madhya Pradesh 0.6 0.5 0.6 0.8 0.4 0.4 0.3
- West Bengal 2.7 1.5 1.6 1.7 1.4 1.6 1.7
- Bihar 0.7 0.5 0.6 0.6 0.5 0.7 0.8
- Maharashtra 0.6 0.4 0.3 0.2 0.1 0.1 0.2
- Assam 0.5 0.4 0.4 0.4 0.4 0.4 0.2
- Delhi 0.1 0.0 0.1 0.1 0.1 0.1 0.1
- Orissa 0.9 1.1 1.0 1.1 1.3 1.4 1.6
- Others 1.0 1.2 1.3 1.5 1.3 1.3 0.8
Chhattisgarh 1.5 1.4 1.4 2.0 3.0 3.4 3.7
Adjusted surplus/deficit 0.1 0.2 0.1 0.0 0.1 0.1 0.5
Century Textiles 15% 18% 20% 22% 24% 23% 22%
Grasim 16% 15% 15% 17% 30% 19% 18%
Lafarge 21% 22% 22% 21% 19% 18% 18%
Ultratech Cement 23% 20% 20% 19% 4% 18% 17%
ACC 14% 14% 12% 11% 11% 11% 12%
Gujarat Ambuja 12% 12% 10% 11% 9% 9% 10%
Notes
1) Prices are wholesale prices for OPC-53 grade and include excise, sales tax and octroi.
2) Regional classification of states has changed from 2001-02, due to the formation of a new state of Chattisgarh. Hence,
figures for the regions (East and West) for 2001-02 are not comparable with the earlier years, with respect to
capacity, demand and production.

Table 3: State profile - Delhi
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Production 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Consumption 2.9 3.0 3.4 3.7 3.5 3.0 3.5
Growth (per cent) 10.3 0.8 14.1 10.7 -6.6 -15.2 18.5
Gross surplus/(deficit) (2.9) (3.0) (3.4) (3.7) (3.5) (3.0) (3.5)
Inflows
From other states (excluding Delhi) 2.9 3.0 3.4 3.7 3.5 3.0 3.5
- Rajasthan 2.3 2.4 2.7 2.7 2.4 2.0 2.3
- Madhya Pradesh 0.5 0.4 0.4 0.7 0.7 0.7 0.8
- Others 0.1 0.2 0.3 0.3 0.5 0.3 0.4
Delhi 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Shree Cement 15% 18% 18% 16% 18% 18% 18%
Ambuja Cement Ltd 12% 11% 12% 14% 14% 12% 13%
JK Synthetics 8% 12% 13% 13% 13% 15% 15%
Grasim 12% 13% 15% 16% 10% 13% 14%
ACC 5% 7% 9% 8% 8% 5% 7%
Jaiprakash Inds. 6% 3% 1% 3% 6% 6% 6%
Birla Corp. 6% 6% 5% 5% 6% 5% 6%
Mangalam Cement 5% 6% 5% 4% 6% 6% 4%
Shriram Cement 6% 7% 5% 4% 5% 5% 4%
JK Corp. 11% 9% 8% 7% 5% 4% 4%
Binani Cement 4% 4% 4% 3% 3% 4% 4%
Mysore Cement 2% 2% 1% 1% 2% 2% 1%
Lafarge 1% 0% 0% 1% 2% 1% 1%
Prices in the key centre in the state (Rs/bag)
Delhi 136 130 134 150 170 215 236
Note

Table 4: State profile - Gujarat
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 13.4 14.0 17.1 17.6 17.6 17.6 17.8
Production 10.5 10.1 10.3 11.7 13.6 15.2 15.4
Consumption 7.5 7.4 7.8 8.7 9.1 10.1 11.7
Growth (per cent) - -2.0 6.3 11.0 4.7 10.4 15.9
Inflows
From other states (excluding Gujarat) 1.9 2.0 1.7 2.0 2.0 1.9 2.1
- Rajasthan 1.6 1.8 1.5 1.6 2.0 1.8 2.1
- Madhya Pradesh 0.2 0.2 0.1 0.1 0.0 0.0 0.0
Gujarat 5.6 5.4 6.2 6.7 6.6 7.8 9.2
Outflows
To other states (excluding Gujarat) 4.9 4.7 4.2 4.9 6.9 2.3 2.8
- Maharashtra 2.0 1.7 1.3 1.5 1.9 2.0 2.6
- Rajasthan 0.2 0.2 0.1 0.1 0.1 0.0 0.0
- Kerala 0.3 0.1 0.0 0.0 0.0 0.0 0.0
- Karnataka 0.4 0.2 0.1 0.2 0.2 0.2 0.2
-Others 0.0 0.2 0.1 0.1 0.0 0.0 0.0
Gujarat 5.6 5.4 6.2 6.7 6.6 7.8 9.2
Adjusted surplus/(deficit) (0.0) (0.0) (0.0) 0.0 (0.5) 4.7 3.0
Gujarat Ambuja 25% 24% 23% 21% 20% 20% 20%
Sanghi Industries Ltd. 0% 0% 9% 13% 12% 14% 15%
JK Corp. 5% 8% 7% 7% 9% 9% 8%
Grasim 11% 11% 10% 9% 9% 9% 7%
Binani Cement 7% 9% 8% 7% 7% 6% 7%
Gujarat Sidhee Cement 8% 7% 8% 6% 7% 9% 7%
Saurashtra Cement 9% 10% 7% 6% 4% 5% 8%
JK Synthetics 3% 4% 2% 3% 2% 2% 1%
Ahmedabad 145 134 126 141 162 202 221
Surat 146 134 126 146 170 202 222
Note

Table 5: State profile - Haryana
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 0.2 0.2 0.2 0.2 0.2 0.2 0.3
Production 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Consumption 3.3 3.4 3.7 4.2 4.9 5.6 7.0
Growth (per cent) - 5.9 8.0 14.1 16.0 13.4 24.6
Inflows
From other states (excluding Haryana) 3.3 3.4 3.7 4.2 4.9 5.6 6.9
-Madhya Pradesh 0.3 0.3 0.4 0.6 0.8 1.0 1.1
- Rajasthan 2.6 2.6 2.7 3.0 3.3 3.8 4.8
- Punjab 0.1 0.1 0.2 0.3 0.4 0.4 0.6
-Himachal Pradesh 0.4 0.4 0.3 0.3 0.5 0.4 0.5
Haryana - - - - - - -
Grasim 14% 15% 16% 17% 19% 18% 17%
JK Synthetics 14% 17% 16% 18% 18% 20% 18%
Shree Cement 14% 16% 17% 17% 16% 19% 24%
Ambuja Cement Ltd 17% 15% 17% 15% 15% 14% 12%
ACC 5% 6% 7% 8% 9% 6% 7%
Birla Corp. 10% 10% 10% 9% 8% 8% 7%
Binani Cement 8% 8% 7% 6% 6% 6% 5%
JK Corp. 9% 8% 6% 6% 3% 3% 5%
Karnal 142 135 138 155 166 214 230
Notes

Table 6: State profile - Karnataka
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 9.7 9.9 10.2 10.2 10.7 11.0 12.4
Production 6.8 8.1 9.3 9.3 10.0 10.1 10.8
Consumption 6.2 7.1 8.2 7.6 9.4 11.1 11.8
Growth (per cent) - 15.8 15.4 -7.2 22.8 18.5 6.2
Gross surplus/(deficit) 0.6 1.0 1.0 1.7 0.6 -1.0 -1.0
Inflows
From other states (excluding Karnataka) 2.9 3.1 3.7 3.2 4.9 6.3 6.6
- Andhra Pradesh 2.4 2.7 3.0 2.7 4.2 5.2 5.4
- Tamil Nadu 0.2 0.3 0.5 0.6 0.5 0.7 0.8
- Others 0.4 0.2 0.1 0.0 0.3 0.4 0.4
Karnataka 3.2 4.0 4.6 4.3 4.5 4.8 5.2
Outflows
To other states (excluding Karnataka) 3.5 4.1 4.7 5.3 5.4 5.3 5.5
- Maharashtra 2.7 3.0 3.2 3.5 3.5 3.8 4.0
- Andhra Pradesh 0.4 0.5 0.7 0.7 1.0 1.0 1.0
- Kerala 0.1 0.2 0.2 0.3 0.3 0.2 0.2
- Tamil Nadu 0.1 0.2 0.3 0.4 0.3 0.2 0.1
- Goa 0.1 0.2 0.2 0.4 0.2 0.2 0.2
- Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Karnataka 3.2 4.0 4.6 4.3 4.5 4.8 5.2
Adjusted surplus/(deficit) (0.0) 0.0 (0.0) (0.4) 0.1 (0.0) 0.0
ACC 21% 23% 22% 22% 19% 16% 16%
Grasim 18% 20% 21% 20% 18% 18% 18%
India Cements 12% 11% 12% 12% 13% 14% 13%
Kesoram Inds. 8% 8% 9% 9% 8% 8% 9%
Zuari Inds. 7% 7% 7% 7% 7% 8% 8%
Penna Cement 4% 5% 5% 0% 6% 5% 5%
CCI 2% 2% 2% 3% 3% 3% 3%
Madras Cements 3% 2% 2% 3% 3% 4% 4%
Mysore Cement 3% 3% 3% 3% 3% 2% 2%
Bangalore 156 139 151 159 169 224 251
Note

Table 7: State profile - Kerala
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 0.4 0.4 0.4 0.6 0.6 0.6 0.6
Production 0.4 0.4 0.5 0.6 0.7 0.6 0.6
Consumption 4.6 5.4 5.8 6.1 6.5 7.0 7.1
Growth (per cent) - 17.7 8.6 4.3 7.0 7.3 2.2
Inflows
From other states (excluding Kerala) 4.2 5.0 5.4 5.5 5.8 6.4 6.6
- Tamil Nadu 2.9 4.0 4.3 4.6 4.8 5.4 5.5
- Andhra Pradesh 0.8 0.7 0.8 0.7 0.7 0.8 0.8
- Gujarat 0.3 0.1 0.0 0.0 0.0 0.0 0.0
- Karnataka 0.1 0.2 0.2 0.3 0.3 0.2 0.2
Kerala 0.4 0.4 0.5 0.6 0.7 0.6 0.6
Outflows
Kerala 0.4 0.4 0.5 0.6 0.7 0.6 0.6
Adjusted surplus/deficit 0.0 0.0 0.0 0.0 (0.0) (0.6) (0.6)
India Cements 23% 21% 21% 20% 20% 19% 20%
Madras Cements 15% 17% 18% 17% 16% 19% 19%
Chettinad Cement 6% 11% 11% 13% 13% 15% 16%
ACC 13% 15% 16% 15% 13% 12% 11%
Malabar Cements 9% 8% 8% 9% 11% 9% 8%
Dalmia Cement 7% 7% 7% 7% 8% 12% 12%
Grasim 3% 4% 3% 3% 3% 4% 4%
Zuari Inds. 3% 3% 3% 3% 3% 3% 3%
Calicut 175 152 162 172 185 222 254
Note

Table 8: State profile - Madhya Pradesh
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 16.0 16.2 16.2 17.4 17.7 18.2 18.4
Production 14.8 15.4 15.0 16.2 17.4 18.9 19.7
Consumption 4.0 5.0 5.6 6.3 6.4 6.5 7.5
Growth (per cent) - 23.8 11.1 13.0 1.3 2.2 15.0
Gross surplus/deficit 10.8 10.4 9.5 9.9 11.0 12.4 12.2
Inflows
From other states (excluding Madhya Pradesh) 1.3 1.6 2.1 2.6 1.8 1.5 1.6
- Rajasthan 0.5 0.5 0.6 0.6 0.7 0.6 0.8
- Gujarat 0.0 0.2 0.1 0.1 0.0 0.0 0.0
- Chhattisgarh 0.6 0.5 0.6 0.8 0.4 0.4 0.3
- Maharashtra 0.1 0.5 0.8 1.0 0.6 0.5 0.4
Madhya Pradesh 2.8 3.4 3.5 3.7 4.5 4.9 5.9
Outflows
To other states (excluding Madhya Pradesh) 11.1 11.0 10.6 11.6 12.0 13.2 13.0
- Uttar Pradesh 7.4 7.3 6.9 6.6 6.0 6.9 6.9
- Uttaranchal 0.4 0.6 0.7 0.7 0.9 1.3 1.2
- West Bengal 0.2 0.2 0.2 0.3 0.6 0.3 0.2
- Bihar 0.9 1.1 1.1 1.6 1.9 1.7 1.7
- Maharashtra 0.1 0.0 0.0 0.0 0.0 0.0 0.0
- Assam 0.2 0.2 0.3 0.3 0.4 0.3 0.1
- Delhi 0.5 0.4 0.4 0.7 0.7 0.7 0.8
- Orissa 0.0 - - - 0.0 0.0 0.0
- Punjab 0.4 0.0 0.0 0.0 0.0 0.2 0.2
- Haryana 0.3 0.3 0.4 0.6 0.8 1.0 1.1
- Gujarat 0.2 0.2 0.1 0.1 0.0 0.0 0.0
- Others 0.6 0.5 0.5 0.5 0.6 0.9 0.8
Madhya Pradesh 2.8 3.4 3.5 3.7 4.5 4.9 5.9
Adjusted surplus/deficit 0.9 1.1 0.9 0.9 0.8 0.7 0.8
Grasim 20% 19% 17% 18% 19% 16% 18%
Jaiprakash Inds. 15% 14% 14% 14% 16% 18% 17%
ACC 9% 11% 11% 11% 11% 12% 12%
Prism Cement 9% 9% 10% 8% 10% 10% 11%
Mysore Cement 11% 11% 8% 7% 7% 7% 9%
Birla Corp. 6% 6% 6% 5% 5% 4% 5%
JK Synthetics 4% 4% 4% 4% 4% 3% 4%
Lafarge 3% 3% 3% 3% 3% 2% 1%
Ambuja cement Ltd 1% 3% 5% 5% 3% 3% 2%
Bhopal 129 118 116 130 145 194 216
Notes

Table 9: State profile - Maharashtra
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 9.1 10.8 11.5 12.0 12.0 12.0 12.1
Production 6.7 9.2 10.6 11.0 11.4 12.1 13.4
Consumption 13.2 14.2 14.7 15.9 16.8 18.2 20.6
Growth (per cent) 7.0 3.7 8.0 5.9 8.4 13.0
Inflows
From other states (excluding Maharashtra) 7.3 6.4 6.1 7.1 7.6 8.1 9.0
- Karnataka 2.7 3.0 3.2 3.5 3.5 3.8 4.0
- Andhra Pradesh 1.7 1.1 1.1 1.6 1.8 1.9 1.8
- Gujarat 2.0 1.7 1.3 1.5 1.9 2.0 2.6
- Madhya Pradesh 0.1 0.0 0.0 0.0 0.0 0.0 0.0
- Rajasthan 0.3 0.1 0.2 0.2 0.2 0.2 0.4
- Chhattisgarh 0.6 0.4 0.3 0.2 0.1 0.1 0.2
Maharashtra 6.0 7.8 8.6 8.8 9.2 10.1 11.6
Outflows
To other states (excluding Maharashtra) 0.7 1.4 2.1 2.3 1.2 2.0 1.8
- Andhra Pradesh 0.4 0.6 0.6 0.6 0.8 0.9 0.9
- Tamil Nadu 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Madhya Pradesh 0.1 0.5 0.8 1.0 0.6 0.5 0.4
- Others 0.2 0.3 0.7 0.7 0.8 0.6 0.4
Maharashtra 6.0 7.8 8.6 8.8 9.2 10.1 11.6
Adjusted surplus/(deficit) (0.0) 0.0 (0.0) (0.0) 1.0 (0.0) 0.0
ACC 14% 15% 15% 14% 15% 14% 13%
Grasim 15% 15% 14% 13% 14% 13% 11%
Kesoram Inds. 9% 9% 9% 9% 8% 10% 11%
Orient Cement 7% 7% 7% 7% 7% 7% 7%
India Cements 5% 3% 3% 4% 4% 4% 3%
Indo Rama Cement 4% 4% 4% 4% 3% 3% 3%
Mumbai 170 156 162 172 188 261 271
Nagpur 137 118 126 142 151 216 234
Pune 145 125 135 150 166 268 276
Note

Table 10: State profile - Orissa
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 2.8 2.8 3.0 3.0 3.0 3.4 3.6
Production 2.4 2.6 2.5 2.9 3.3 3.6 3.9
Consumption 2.9 3.5 3.4 3.9 4.1 4.4 4.7
Growth (per cent) - 17.8 -2.2 14.4 7.4 6.9 6.5
Inflows
From other states (excluding Orissa) 1.1 1.4 1.5 1.8 1.7 1.8 1.9
- Madhya Pradesh 0.0 - - - 0.0 - -
- Andhra Pradesh 0.2 0.2 0.4 0.6 0.4 0.3 0.3
- Chhattisgarh 0.9 1.1 1.0 1.1 1.3 1.4 1.6
Orissa 1.8 2.0 1.8 2.1 2.3 2.5 2.6
Outflows
To other states (excluding Orissa) 0.6 0.6 0.6 0.8 1.0 1.2 1.0
- West Bengal 0.3 0.3 0.4 0.3 0.4 0.4 0.5
- Bihar 0.1 0.1 0.1 0.1 0.2 0.2 0.2
- Others 0.2 0.2 0.2 0.3 0.4 0.5 0.3
Orissa 1.8 2.0 1.8 2.1 2.3 2.5 2.6
Adjusted surplus/(deficit) 0.0 0.0 (0.0) (0.0) (0.2) (0.2) 0.0
OCL India 26% 25% 26% 25% 25% 27% 25%
ACC 4% 4% 9% 17% 19% 19% 19%
Lafarge 6% 7% 8% 8% 10% 10% 12%
Grasim 5% 5% 5% 5% 5% 6% 5%
India Cements 1% 0% 2% 3% 3% 1% 1%
My Home Industries 0% 0% 0% 0% 2% 2% 2%
Bhubaneshwar 134 141 141 150 158 216 229
Note
Prices are retail prices and are inclusive of excise, sales tax and octroi.

Table 11: State profile - Punjab
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 2.2 2.8 3.0 3.9 4.2 4.2 4.2
Production 1.9 2.9 3.3 3.8 4.5 4.7 4.7
Consumption 4.9 5.3 5.4 5.2 5.7 6.5 6.6
Growth (per cent) - 7.5 2.8 -3.0 8.0 14.9 1.5
Inflows
From other states (excluding Punjab) 3.4 3.0 3.2 3.0 2.9 3.6 3.8
-Madhya Pradesh 0.4 0.0 0.0 0.0 0.0 0.2 0.2
- Rajasthan 1.3 1.3 1.4 1.3 1.0 1.4 1.4
Punjab 1.5 2.2 2.2 2.2 2.7 2.9 2.8
Outflows
To other states (excluding Punjab) 0.4 0.7 1.1 1.6 1.1 1.7 1.9
- Uttaranchal 0.0 0.1 0.1 0.2 0.1 0.1 0.1
- Delhi 0.0 0.0 0.1 0.2 0.3 0.2 0.2
- Jammu and Kashmir 0.2 0.2 0.2 0.3 0.4 0.5 0.5
-Haryana 0.1 0.1 0.2 0.3 0.4 0.4 0.6
- Chandigarh 0.0 0.1 0.1 0.1 0.1 0.1 0.1
- Uttar Pradesh 0.1 0.1 0.4 0.4 0.3 0.4 0.4
- Others 0.0 0.0 0.1 0.1 0.1 0.0 0.0
Punjab 1.5 2.2 2.2 2.2 2.7 2.9 2.8
Adjusted surplus/(deficit) (0.0) 0.0 (0.0) 0.0 0.7 (0.0) 0.1
ACC 33% 31% 31% 31% 33% 31% 33%
Grasim 10% 16% 17% 17% 18% 18% 18%
Shree Cement 8% 7% 7% 7% 5% 7% 8%
Birla Corp. 5% 5% 5% 5% 5% 4% 2%
Bhatinda 151 139 147 162 166 225 231
Notes

Table 12: State profile - Rajasthan
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 17.1 18.4 18.9 19.5 20.3 22.1 24.8
Production 16.0 17.3 17.8 18.7 20.2 22.1 25.7
Consumption 5.2 6.2 6.6 7.0 8.3 9.1 10.3
Growth (per cent) - 18.3 7.2 5.4 18.7 10.3 13.1
Gross surplus/deficit 10.8 11.1 11.2 11.7 12.0 13.0 15.4
Inflows
From other states(excluding Rajasthan) 0.3 0.2 0.3 0.2 0.2 0.3 0.3
- Gujarat 0.2 0.2 0.1 0.1 0.1 0.0 0.0
- Madhya Pradesh 0.1 0.1 0.1 0.1 0.1 0.3 0.3
Rajasthan 4.9 5.9 6.3 6.7 8.1 8.9 10.0
Outflows
To other states (excluding Rajasthan) 11.1 11.3 11.5 11.9 12.2 13.2 15.8
- Delhi 2.3 2.4 2.7 2.7 2.4 2.0 2.3
- Uttar Pradesh 2.4 2.3 2.1 2.2 2.4 3.0 3.2
- Haryana 2.6 2.6 2.7 3.0 3.3 3.8 4.8
- Gujarat 1.6 1.8 1.5 1.6 2.0 1.8 2.1
- Punjab 1.3 1.3 1.4 1.3 1.0 1.4 1.4
- Madhya Pradesh 0.5 0.5 0.6 0.6 0.7 0.6 0.8
- Maharashtra 0.3 0.1 0.2 0.2 0.2 0.2 0.4
-Others 0.2 0.3 0.3 0.3 0.3 0.4 0.6
Rajasthan 4.9 5.9 6.3 6.7 8.1 8.9 10.0
Adjusted surplus/(deficit) (0.1) 0.0 (0.0) 0.0 (0.1) 0.0 (0.0)
Grasim 16% 16% 15% 15% 16% 17% 17%
Binani Cement 15% 14% 15% 14% 13% 12% 12%
JK Corp. 7% 9% 9% 10% 12% 10% 10%
Shree Cement 11% 13% 12% 13% 12% 20% 22%
JK Synthetics 12% 12% 13% 12% 11% 9% 8%
Birla Corp. 12% 11% 11% 11% 11% 10% 10%
Mangalam Cement 8% 7% 7% 7% 7% 5% 5%
Jaipur 130 118 125 148 156 213 219
Note
Prices are retail prices and are inclusive of excise, sales tax and octroi.

Table 13: State profile - Tamil Nadu
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 11.6 14.3 14.5 14.6 14.6 16.8 16.9
Production 9.2 11.7 12.3 12.6 14.3 17.2 17.9
Consumption 8.3 9.1 9.1 9.0 11.1 12.8 14.5
Growth (per cent) - 8.9 0.3 -1.4 24.1 15.4 12.6
Inflows
From other states(excluding Tamil Nadu) 2.5 2.0 2.0 2.0 2.6 2.9 3.2
- Andhra Pradesh 2.3 1.8 1.7 1.6 2.3 2.7 3.1
- Maharashtra 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Karnataka 0.1 0.2 0.3 0.4 0.3 0.2 0.1
Tamil Nadu 5.8 7.0 7.1 7.0 8.5 9.9 11.1
Outflows
To other states (excluding Tamil Nadu) 3.3 4.6 5.1 5.4 5.5 6.5 6.8
- Kerala 2.9 4.0 4.3 4.6 4.8 5.4 5.5
- Karnataka 0.2 0.3 0.5 0.6 0.5 0.7 0.8
- Pondicherry 0.1 0.2 0.2 0.2 0.3 0.3 0.4
- Others 9.1 11.6 12.2 12.4 8.6 0.1 0.1
Tamil Nadu 5.8 7.0 7.1 7.0 5.0 9.9 11.1
Adjusted surplus/deficit 0.0 0.1 0.1 0.2 0.3 0.8 (0.1)
India Cements 26% 22% 21% 21% 21% 20% 22%
Madras Cements 17% 17% 17% 17% 19% 19% 18%
Dalmia Cement 7% 8% 8% 8% 8% 12% 14%
Chettinad Cement 8% 11% 10% 12% 12% 11% 11%
Grasim 7% 7% 8% 7% 8% 7% 7%
Penna Cement 3% 3% 4% 0% 6% 6% 5%
Zuari Inds. 6% 7% 6% 6% 5% 5% 5%
Tamil Nadu Cement 7% 8% 9% 8% 6% 5% 5%
Chennai 161 143 153 160 163 223 258
Note
Prices are wholesale prices and are inclusive of excise, sales tax and octroi.

Table 14: State profile - Uttar Pradesh
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 4.2 4.8 5.5 6.8 7.3 7.3 7.4
Production 1.8 2.4 3.5 4.2 4.9 5.1 5.3
Consumption 12.0 12.7 13.4 14.1 14.2 15.9 16.3
Growth (per cent) - 6.1 5.2 5.3 0.6 11.9 2.4
Inflows
From other states (excluding Uttar Pradesh) 10.2 10.4 10.0 10.0 9.0 10.3 10.5
-Madhya Pradesh 7.4 7.3 6.9 6.6 6.0 6.9 6.9
- Rajasthan 2.4 2.3 2.1 2.2 2.4 3.0 3.2
- Chhattisgarh 0.3 0.4 0.4 0.5 0.5 0.3 0.2
Uttar Pradesh 1.8 2.3 3.4 4.1 4.8 5.1 5.3
Outflows
To other states (excluding Uttar Pradesh) 0.0 0.1 0.1 0.1 0.0 0.0 0.0
- Uttaranchal 0.0 - 0.1 0.1 0.1 0.0 0.0
- Others 0.0 0.1 0.0 0.0 0.0 0.0 0.0
Uttar Pradesh 1.8 2.3 3.4 4.1 4.8 5.1 5.3
Adjusted surplus/(deficit) 0.0 0.0 (0.0) 0.0 (0.4) (0.5) (0.5)
Jaiprakash Inds. 20% 20% 19% 19% 21% 21% 21%
ACC 15% 16% 18% 19% 19% 20% 21%
Birla Corp. 11% 11% 11% 11% 11% 11% 10%
Prism Cement 10% 9% 8% 7% 7% 7% 7%
Mysore Cement 7% 8% 7% 7% 7% 7% 7%
Grasim 6% 6% 7% 6% 6% 6% 6%
Lucknow 138 129 131 152 159 197 213
Notes

Table 15: State profile - West Bengal
(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Capacity 2.3 3.1 3.1 3.1 3.5 4.1 5.1
Production 1.7 2.5 2.7 3.1 3.2 3.5 3.6
Consumption 5.9 5.6 5.8 6.2 6.6 6.9 7.3
Growth (per cent) - -5.1 2.7 7.6 5.9 5.1 5.0
Inflows
From other states (excluding West Bengal) 4.4 3.3 3.4 3.6 3.4 3.4 3.7
- Jharkhand 1.1 1.2 1.2 1.1 1.1 1.1 1.3
- Chhattisgarh 2.7 1.5 1.6 1.7 1.4 1.6 1.7
- Madhya Pradesh 0.2 0.2 0.2 0.3 0.6 0.3 0.2
- Bihar 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Orissa 0.3 0.3 0.4 0.3 0.4 0.4 0.5
West Bengal 1.6 2.3 2.4 2.6 2.8 3.4 3.5
Outflows
To other states (excluding West Bengal) 0.1 0.2 0.4 0.5 0.3 0.1 0.1
- Bihar 0.0 0.0 0.1 0.1 0.1 0.0 0.0
- Others 0.0 0.2 0.4 0.4 0.2 0.1 0.1
West Bengal 1.6 2.3 2.4 2.6 2.8 3.4 3.5
Adjusted surplus/(deficit) 0.1 (0.0) (0.0) 0.1 (0.2) (0.1) (0.1)
ACC 19% 18% 19% 19% 18% 16% 17%
Lafarge 24% 21% 20% 19% 17% 17% 17%
Birla Corp. 8% 9% 9% 10% 9% 9% 8%
OCL India 3% 3% 3% 3% 4% 5% 6%
Grasim 7% 8% 7% 7% 4% 6% 6%
Jaiprakash Inds. 1% 1% 1% 2% 3% 2% 2%
Kolkata 138 150 158 174 174 224 232
Note
Prices are wholesale prices and are inclusive of excise, sales tax and octroi.

3.0 Raw material
Table 1: Fuel receipts

Coal linkage Coal receipts1 Other receipts Lignite Total receipts
Open market coal Coal
(million tonnes) purchases imports
1992-93 15.62 10.50 1.27 0.09 0.80 12.66
1993-94 15.68 10.34 0.86 0.12 0.70 12.02
1994-95 17.03 10.28 2.32 0.71 0.80 14.11
1995-96 18.03 10.06 2.80 1.30 0.80 14.96
1996-97 16.94 10.45 2.48 1.65 0.70 15.28
1997-98 17.10 9.61 1.62 3.52 0.42 15.17
1998-99 14.11 8.24 0.77 4.66 0.20 13.87
1999-2000 13.80 9.01 0.63 6.04 0.05 15.73
2
2000-01 13.50 9.74 0.79 4.40 0.42 15.35
2
2001-02 15.11 11.09 0.87 3.37 0.96 16.29
2002-03 15.74 12.35 0.77 3.66 1.09 17.87
2003-04 16.09 13.34 1.03 3.18 1.41 18.96
2
2004-05 17.14 14.84 1.27 3.63 1.87 21.61
2005-06 17.10 14.81 1.55 3.40 2.16 21.92
2006-07 15.48 14.43 2.94 4.96 0.83 23.16
1
Receipts against linkage
2
Includes receipts of lignite and pet coke
Note
Receipts include captive power plants.
Source: CMA
Table 2: Fuel consumption

(million tonnes) Process Captive power Total
Coal Lignite
1992-93 11.0 0.6 0.5 12.1
1993-94 11.2 0.7 0.8 12.8
1994-95 11.7 0.7 0.8 13.3
1995-96 12.5 0.8 1.0 14.2
1996-97 13.3 0.6 1.1 15.0
1997-98 13.4 0.4 1.2 15.0
1998-99 12.5 0.2 1.4 14.0
1999-2000 13.6 0.1 1.8 15.4
2000-01 13.1 0.4 1 1.9 15.4
1
2001-02 12.8 1.0 2.0 15.8
2002-03 14.2 1.1 1 2.6 17.8
2003-04 14.2 1.4 1 3.2 18.8
1
2004-05 15.0 1.87 3.6 21.2
2005-06 15.1 2.98 1 4.3 22.4
2006-07 16.8 0.83 5.3 22.9
1
Includes lignite and pet coke
Source: CMA

Table 3: Coal - Receipts to cement industry to total coal production
(million tonnes) Coal Coal receipts to the Percentage of Percentage of coal Average wagon
production cement industry coal receipts to receipts to cement loading (FW/day)
the cement industry by rail
industry, to coal
production
1989-90 201.0 8.9 4.4 81.0 850.0
1990-91 211.4 10.0 4.7 76.0 914.0
1991-92 229.3 10.5 4.6 72.0 895.0
1992-93 238.3 10.5 4.4 75.0 941.0
1993-94 246.0 10.3 4.2 78.0 963.0
1994-95 253.8 10.3 4.1 76.0 934.0
1995-96 270.1 10.1 3.7 69.0 825.0
1996-97 285.7 10.5 3.7 64.0 799.0
1997-98 296.1 9.6 3.2 66.0 731.0
1998-99 290.8 8.2 2.8 59.0 525.0
1999-2000 299.3 9.0 3.0 62.0 605.0
2000-01 309.8 9.7 3.1 65.0 670.0
2001-02 323.0 11.1 3.4 70.0 809.0
2002-03 324.2 12.4 3.8 68.0 787.0
2003-04 356.2 13.3 3.7 67.0 891.0
2004-05 376.6 14.8 3.9 68.0 1,055.0
2005-06 407.0 14.8 3.6 71.0 1,100.0
2006-07 430.9 14.4 3.3 72.0 1,079.0
FW: Four-wheeler wagon
Source: CMA

Table 4: Coal - Royalty
(Rs/tonne of coal) Coal royalty
1991 (August 1)1 70
19921 70
19931 70
2
1994 (October 11) 75
1995'2 75
1996'2 75
2
1997' 75
1998 (March 31)2 75
1999 75
2000 75
2001 75
2002 (August 16) 90
2003 90
2004 90
2005 90
2006 90
2007 90
1
The royalty on D grade coal other than the coal from Singareni mines is Rs 45 per tonne
2
The royalty on D grade coal other than the coal from Singareni mines, which is produced in Assam,
is Rs 70 per tonne; while the run of mine excluding cess surcharge and other levies, coal produced in
Assam is Rs 120 per tonne. In West Bengal, the royalty is Rs 4.5 per tonne.
The coal royalty rates provided are for D grade slack coal from Singareni mines.
Source: CMA
Table 5: Coal - Change in pithead prices

(Rs/tonne of coal) Pithead price
December 28, 1991 458
February 17, 1993 512
June 19, 1993 533
June 17, 1994 563
January 9, 1996 590
March 15, 1997 857
October 29, 1998 1,069
March 31, 2000 937
April 10, 2001 983
March 31, 2003 983
March 31, 2004 983
March 31, 2005 983
March 31, 2006 983
March 31, 2007 1,130
Notes
1) Coal prices are for D-grade coal from Singareni Collieries.
2) Coal prices are as on March 31, effective from April 10, 2001.
Source: CMA

Figure 1: Coal - International prices and landed cost of imports
140.0 7,000
120.0 6,000
100.0 5,000
(Rs/tonne)
($/tonne)
80.0 4,000
60.0 3,000
40.0 2,000
20.0 1,000
0.0 0
Nov-97
Sep-98
Jul-99
May-00
Mar-01
Jan-02
Nov-02
Sep-03
Jul-04
May-05
Mar-06
Jan-07
Nov-07
Australia Landed cost
Prices are average fob monthly prices of coal imported from Australia.
Source: World Bank
Table 6: Gypsum - Domestic prices

(Rs/tonne) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Atul 68 81 55 n.a. n.a. n.a.
Fertilizer Corporation of India 406 269 n.a. n.a. n.a. n.a.
SRF 121 125 250 285 233 335
Tata Chemicals 475 424 439 561 456 424
n.a.: Not available
Table 7: Lignite - Domestic prices

(Rs/tonne) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
GMDC 446 483 498 489 541 602 637
NLC 765 864 1,028 1,063 1,201 1,082 1097
GMDC: Gujarat Mineral Development Corporation; NLC: Neyveli Lignite Corporation

Table 8: Company-wise coal consumption
Units 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC kCals per kg of clinker 794 783 765 765 759 736 736 752
Ambuja Cement Eastern kCals per kg of clinker 831 857 823 851 849 841 n.a. n.a.
Andhra Cements per cent of clinker 22 20 20 19 22 23 25 25
Binani Cement tonnes per tonne of cement 0.11 0.11 0.11 0.10 0.10 0.10 n.a. 0.1
Birla Corp tonnes per tonne of cement 0.13 0.13 n.a. n.a. n.a. n.a. n.a. 0.11
Century Textiles tonnes per tonne of cement 0.19 0.18 0.15 0.14 0.13 0.13 0.13 0.13
Chettinad Cement1 tonnes per tonne of cement 11.08 10.98 12.81 10.89 9.65 10.18 10.18 10.42
Dalmia Cement tonnes per tonne of cement 0.12 0.12 0.11 0.10 0.10 0.10 0.10 0.11
DLF Cement kCals per kg of clinker 733 724 735 720 - - - -
Grasim tonnes per tonne of cement 0.13 0.12 0.13 0.12 0.13 0.12 0.12 0.13
Ambuja Cement Ltd kCals per kg of clinker 753 730 742 729 728 715 730 742
Gujarat Sidhee Cement kCals per kg of clinker 789 815 808 813 815 813 792 798
India Cements tonnes per tonne of cement 0.16 0.14 0.14 0.14 14.51 14.6 14.6 n.a.
.2
JK Corp tonnes per tonne of cement 0.12 0.11 0.10 - 0.09 0.09 0.08 0.08
JK Synthetics kCals per kg of clinker 846 840 832 - 803 787 n.a. n.a.
JK Udaipur Udyog tonnes per tonne of cement 0.15 - 0.15 - n.a. n.a. n.a. n.a.
3
Kanoria Inds kCals per kg of clinker 18.07 16.83 26.03 - - - - -
KCP tonnes per tonne of cement 0.16 0.14 0.14 0.16 0.15 0.16 0.16 0.16
Madras Cements per cent of clinker 14.23 14.19 14.62 11.34 12.47 11.46 11.46 0.01
Mangalam Cement4 tonnes per tonne of cement 0.15 0.16 0.18 0.35 0.34 0.32 0.34 0.34
5
Narmada Cement kCals per kg of clinker 806 787 750 810 804 0.13 0.13 n.a.
OCL India tonnes per tonne of cement 0.14 0.14 0.12 0.11 0.10 0.11 0.11 0.1
Panyam Cements tonnes per tonne of cement 0.21 0.21 0.21 0.20 0.25 0.22 0.25 0.28
Prism Cement per cent of clinker 16.13 16.31 15.54 14.8 15.97 16.89 16.54 n.a.
Priyadarshini tonnes per tonne of cement 0.18 0.17 0.17 0.18 0.18 n.a. n.a. n.a.
Saurashtra Cement tonnes per tonne of cement 0.14 0.16 0.14 - - - - -
Shree Cement per cent of clinker 12.34 9.47 9.47 8.26 8.84 9.02 10.37 11.73
6
Shree Digvijay KCals per kg of clinker 769 1,072 1,097 2,206 815 786 779 781
Sri Vishnu Cement tonnes per tonne of cement 0.19 0.17 0.17 0.16 0.17 0.18 0.19 0.21
Ultratech Cement Ltd tonnes per tonne of cement 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.13
Zuari Inds tonnes per tonne of cement 0.14 n.a. n.a. n.a. n.a. n.a. n.a. n.a.
n.a.: Not available
1
From 2000-01, the figures are a percentage of coal per unit of clinker
2
Figures for 1999-2000 are for a period of 18 months with year ending September
3
From 1997-98, figures are a percentage of coal per unit of clinker
4
Figures for 2000-01 are for the October 2000 to September 2001 period
5
Figures for 2003-04, are for the March 2002 to September 2004 period
6
Figures for 2004-05, are for the period of 6 months with year ending March.
ACC: From 2005-06 figures are as of December 2006, Andhra Cements: Figures are of September 2006

Table 9: State-wise trends in power tariffs
(paise/kWh) Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Andhra Pradesh 412.1 435.0 435.0 416.0 405.0 395.0 370.0 336.0
Assam 327.0 327.0 327.0 327.0 327.0 369.0 369.0 369.0
Bihar-BSEB 359.3 397.4 397.4 445.2 445.2 445.2 445.2 445.2
Bihar-DVC 362.9 270.8 300.8 n.a. n.a. n.a. n.a. n.a.
Chhattisgarh - 434.6 434.6 434.6 434.6 438.6 451.8 446.2
Delhi 375.2 413.8 413.8 453.8 453.8 579.0 562.1 562.1
Gujarat 535.2 581.6 581.6 584.0 584.0 584.0 606.9 543.6
Haryana 442.2 482.0 482.0 515.9 515.9 464.0 515.9 515.9
Karnataka 420.0 450.0 450.0 456.0 489.3 489.3 487.2 487.2
Kerala 241.7 241.7 301.5 351.5 351.5 351.5 351.5 351.5
Jharkhand - 441.0 443.0 443.0 443.0 432.0 432.0 432.0
Madhya Pradesh 434.6 434.6 458.8 480.2 480.2 437.4 450.3 444.7
Maharashtra 401.1 400.1 388.5 364.4 346.0 361.0 410.0 548.0
Meghayala 200.0 200.0 200.0 200.0 244.0 266.0 266.0 266.0
Orissa 310.0 350.0 350.0 350.0 350.0 350.0 353.2 353.2
Punjab 286.0 286.6 286.6 286.6 372.8 364.7 406.8 388.7
Rajasthan 395.0 430.0 444.0 445.0 444.0 459.0 459.0 459.0
Tamil Nadu 406.4 406.4 415.8 433.7 427.5 427.5 437.4 445.5
Uttar Pradesh 429.0 487.4 487.4 487.4 433.0 409.6 386.3 395.6
West Bengal 262.9 295.5 299.4 302.7 303.0 311.7 335.3 323.7
Note
BSEB: Bihar State Electricity Board; CAGR: Compounded annual growth rate; DVC: Damodar Valley Corporation
Source: CMA

Table 10: Company-wise captive power generating capacity
(MW) March 31, 2001 December 31, 2002 December 31, 2003
DG Thermal Total DG Thermal Total DG Thermal Total
ACC 55.7 79.8 135.4 50.3 80.0 130.3 50.3 125.0 175.3
Andhra Cement 12.6 - 12.6 12.6 - 12.6 12.6 - 12.6
Binani Cement - 25.6 25.6 - 25.6 25.6 - 25.6 25.6
Birla Corp 26.7 34.0 60.7 30.9 34.0 64.9 30.9 34.0 64.9
CCI 37.4 - 37.4 37.4 - 37.4 37.8 - 37.8
Century Cement 20.9 45.4 66.3 20.6 41.4 62.0 20.6 45.4 66.0
Chettinad Cement 12.2 - 12.2 12.2 - 12.2 12.2 - 12.2
Dalmia Cement 12.8 - 12.8 12.8 - 12.8 12.8 - 12.8
DLF Cement 31.0 - 31.0 - - 0.0 - - 0.0
Grasim 128.2 38.2 166.4 147.0 38.2 185.2 147.0 61.2 208.2
Ambuja cement Ltd 96.1 - 96.1 116.9 15.0 131.9 118.1 55.0 173.1
Gujarat Sidhee 0.2 - 0.2 0.2 - 0.2 0.2 - 0.2
HMP Cements - 10.5 10.5 - 10.5 10.5 - 10.5 10.5
India Cements 103.5 - 103.5 87.8 - 87.8 87.8 - 87.8
Jaiprakash Inds 63.9 - 63.9 - - 0.0 59.4 - 59.4
Jaipur Udyog - - - - - 0.0 - - -
J K Corp - - - -- - - 23.5 - 23.5
JK Synthetics 11.5 19.0 30.5 18.5 23.0 41.5 18.5 23.0 41.5
JK Udaipur Udyog 13.0 - 13.0 13.0 - 13.0 13.0 - 13.0
Kalyanpur Cement 2.5 - 2.4 3.2 - 3.2 2.4 - 2.4
Kanoria Inds 8.0 - 8.0 8.0 - 8.0 8.0 - 8.0
KCP 9.9 - 9.9 9.9 - 9.9 9.9 - 9.9
Kesoram Inds 26.3 30.7 57.0 26.3 30.7 57.0 26.3 30.7 57.0
Kistna - 4.0 4.0 - 4.0 4.0 - 4.0 4.0
Lafarge 16.0 - 16.0 43.0 - 43.0 43.4 - 43.4
Madras Cements 45.1 - 45.1 42.0 - 42.0 50.7 - 50.7
Continued…

…continued
(MW) December 31, 2005 December 31, 2006

DG Thermal Total DG Thermal Total
ACC 48.4 140.0 188.4 46.2 140.0 186.2
Andhra Cement 12.6 - 12.6 12.6 - 12.6
Binani Cement - 25.6 25.6 - 25.6 25.6
Birla Corp 31.5 34.0 65.5 31.7 57.0 88.7
CCI 38.8 0.0 38.8 38.8 - 38.8
Century Cement 20.6 55.4 76.0 20.6 64.7 85.3
Chettinad Cement 9.4 15.0 24.4 9.4 15.0 24.4
Dalmia Cement 12.8 - 12.8 12.8 27.0 39.8
DLF Cement - - 0.0 - - 0.0
Grasim 108.4 73.7 182.1 126.4 73.7 200.1
Gujarat Ambuja 118.1 85.0 203.1 129.2 195.0 324.2
Gujarat Sidhee 0.2 - 0.2 30.0 - 30.0
HMP Cements - 10.5 10.5 - 10.5 10.5
India Cements 79.4 - 79.4 79.4 - 79.4
Jaiprakash Inds 59.4 - 59.4 59.4 - 59.4
Jaipur Udyog - - - - - 0.0
J K Corp 23.5 - 23.5 23.5 - 23.5
JK Synthetics 24.0 15.5 39.5 24.0 15.5 39.5
JK Udaipur Udyog 13.0 - 13.0 13.0 - 13.0
Kalyanpur Cement - - - 2.4 - 2.4
Kanoria Inds 8.0 - 8.0 - - 0.0
KCP 10.3 - 10.3 10.3 - 10.3
Kesoram Inds 20.0 40.2 60.2 12.0 40.2 52.2
Kistna - 4.0 4.0 - 4.0 4.0
Lafarge 34.0 - 34.0 34.0 - 34.0
Madras Cements 44.7 36.0 80.7 44.7 36.0 80.7
continued…

…continued
(MW) March 31, 2001 December 31, 2002 December 31, 2003
DG Thermal Total DG Thermal Total DG Thermal Total
Malabar Cements 2.5 - 2.5 2.5 - 2.5 2.5 - 2.5
Mangalam Cement 11.7 - 11.7 11.7 - 11.7 11.7 - 11.7
Modi Cement - - - - - 0.0 - - -
Mysore Cement 39.5 29.2 68.7 39.6 29.2 68.8 39.6 29.2 68.8
Narmada Cement - - - - - 0.0 - - -
Orient Cement 22.9 - 22.9 22.9 - 22.9 23.5 - 23.5
Orissa Cement 20.9 - 20.9 20.9 - 20.9 20.9 - 20.9
Panyam Cements 12.4 - 12.4 12.4 - 12.4 12.4 - 12.4
Prism Cement 30.0 - 30.0 36.0 - 36.0 36.0 - 36.0
Priyadarshini 13.0 - 13.0 12.0 - 12.0 13.0 - 13.0
Raasi Cement - - - - - 0.0 - - -
Raymond Cement 27.0 - 27.0 - - 0.0 - - -
Saurashtra Cement 11.7 - 11.7 11.7 - 11.7 11.7 - 11.7
Sevalia - - - - - 0.0 - - -
Shree Cement 21.1 - 21.1 25.1 25.1 25.1 38.5 63.6
Shree Digvijay - - - - - 0.0 - - -
Sone Valley - 12.5 - - 12.5 12.5 - 12.5 12.5
Sri Vishnu Cement - - - - - 0.0 - - -
Tamil Nadu Cement 10.0 - 10.0 10.0 - 10.0 10.0 - 10.0
Tisco - - - - - 0.0 - - -
Ultratech Cement Ltd 84.1 100.0 184.1 85.7 100.0 185.7 85.7 100.0 185.7
Zuari Cement 25.0 - - 44.9 - 44.9 44.9 - 44.9
Total 1,065.3 428.9 1,456.5 1,027.9 444.1 1,472.0 1,122.3 594.6 1,716.9
continued…

…continued
(MW) December 31, 2005 December 31, 2006

DG Thermal Total DG Thermal Total
Malabar Cements 2.5 - 2.5 2.5 - 2.5
Mangalam Cement 11.7 - 11.7 11.7 - 11.7
Modi Cement - - - - - 0.0
Mysore Cement 33.8 29.2 63.0 34.0 29.2 63.2
Narmada Cement - - - - - 0.0
Orient Cement 23.5 - 23.5 23.5 - 23.5
Orissa Cement 20.9 - 20.9 20.9 - 20.9
Panyam Cements 12.4 - 12.4 12.4 - 12.4
Prism Cement 36.0 - 36.0 36.0 - 36.0
Priyadarshini 12.5 - 12.5 13.9 - 13.9
Raasi Cement - - - - - 0.0
Raymond Cement - - - - - 0.0
Saurashtra Cement 11.7 - 11.7 11.7 - 11.7
Sevalia - - - - - 0.0
Shree Cement 21.1 38.5 59.6 20.3 44.5 64.8
Shree Digvijay - - - - - 0.0
Sone Valley - 12.5 12.5 - 12.5 12.5
Sri Vishnu Cement - - - - - 0.0
Tamil Nadu Cement 4.0 - 4.0 4.0 - 4.0
Tisco - - - - - 0.0
Ultratech Cement Ltd 79.7 97.2 176.9 80.5 97.2 177.7
Zuari Cement 44.2 - 44.2 45.5 - 45.5
Total 1,090.6 716.3 1,806.9 1,077.1 887.6 1,964.7
DG: Diesel generation
Source: CMA

Table 11: Cement - Production by use of captive power
Units produced by Cement production from Proportion of cement manufactured
captive sets (million kWh) captive power (million tonnes) using captive power (per cent)
1982-83 94.0 0.8 3.4
1983-84 251.9 2.1 7.9
1984-85 391.2 3.3 11.0
Seventh plan
1985-86 634.9 5.3 16.5
1886-87 646.2 5.4 15.5
1878-88 795.7 6.6 17.7
1988-89 756.1 6.3 15.1
1989-90 854.1 7.1 16.6
Annual plan
1990-91 930.1 7.8 16.9
1991-92 1,166.3 9.7 19.2
Eighth plan
1992-93 1,100.0 9.2 18.1
1993-94 1,248.6 10.5 19.2
1994-95 1,481.2 12.3 21.2
1995-96 2,109.1 17.6 27.2
1996-97 2,346.5 19.6 27.9
Ninth plan
1997-98 2,575.9 21.5 26.6
1998-99 3,192.9 26.6 32.6
1999-2000 4,298.7 37.4 39.7
2000-01 4,881.0 42.4 45.3
2001-02 4,866.5 42.3 41.3
Tenth plan
2002-03 5,363.9 46.6 41.9
2003-04 5,298.1 46.1 39.2
2004-05 6,396.7 60.9 47.8
2005-06 7,835.6 74.6 52.6
2006-07 P 8,636.1 82.3 52.8
P : Provisional
Source: CMA

4.0 Tariffs
Table 1: Cement - Excise duty

(Rs/tonne) Rate Large cement plants Mini cement plants White cement (per cent)
1993-94 Specific 330 n.a 40
1994-95 Specific 330 180 40
1995-96 Specific 350 180 40
1996-97 Specific 350 180 30
1997-98 Specific 350 200 25
1998-99 Specific 350 200 25
1
1999-2000 Specific 350 200 24
2000-01 Specific 3501 200 242
2001-02 Specific 3501 200 322
2002-03 Specific 4003 200 162
3
2003-04 Specific 400 250 162
2004-05 Specific 4084 250 16.3
4
2005-06 Specific 408 350 16.3
4
2006-07 Specific 408 350 16.3
2007-08 (Retail prices <= Rs190/- per 50 kg bag) Specific 360.55 226.65 16.5
5 5
2007-08 (Retail prices > Rs190/- per 50 kg bag) Specific 618 381 16.5
5 5
2008-09 (Retail prices <= Rs190/- per 50 kg bag) Specific 360.5 226.6 16.5
2008-09(Retail prices > Rs190/- per 50 kg bag) Specific 6185 3815 16.5
1
Excise duty is Rs 332 per tonne of portland cement, bagged outside the factory premise
2
The abatement rate is 40 per cent
3
Excise duty is Rs 382 per tonne of portland cement, bagged outside the factory premises
4
Education cess of 2 per cent has been added to the excise duty for 2004-05 as per the
Budget provisions
5
In the Union Budget 2007-08, the cess has been increased to 3 per cent which has been added to the excise duty for 2007-08

Table 2: Cement - Customs duty
(per cent) BD SD AD Surcharge SACD
1994-95 65 - - - -
1995-96 50 - - - -
1996-97 40 2 - - -
1997-98 40 2 - - -
1998-99 40 2 3 - 4
1999-2000 40 - - - 4
2000-01 35 - - 10 4
2001-02 25 - - - 4
2002-03 20 - - - 4
2003-04 30 - - - 5
2004-05 20 - - 2 5
2005-06 15 - - 2 4
2006-07 0 - - 0 4
2007-08 0 - - 0 0
AD: Additional duty; BD: Basic duty; SACD: Special additional customs duty; SD: Special duty
Note
Education cess of 2 per cent has been added to the excise duty for 2004-05 and 2005-06, as per the Budget
provisions.
Table 3: Cement - State-wise sales tax

(per cent) 1993-94 1995-96 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Andhra Pradesh 15.2 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 12.5 12.5
Delhi 8.0 8.0 10.0 10.0 8.0 8.0 8.8 8.0 8.0 12.5 12.5
Gujarat 15.0 17.0 15.0 15.0 8.8 8.8 8.8 8.8 8.0 8.0 12.5
Karnataka 17.8 16.6 18.8 18.8 18.8 18.8 15.0 15.0 20.0 12.5 12.5
Kerala 13.8 13.8 13.8 13.8 15.0 17.3 17.3 17.3 17.3 12.5 12.5
Maharashtra 12.7 13.0 13.0 15.3 15.3 15.3 15.8 15.8 15.8 12.5 12.5
Madhya Pradesh 12.0 10.0 11.5 11.5 13.8 13.8 13.8 13.8 13.8 13.8 12.5
Orissa 13.2 13.2 13.8 13.8 13.8 13.8 13.2 13.2 13.2 12.5 12.5
Rajasthan 16.0 16.0 17.9 17.9 18.4 18.4 18.4 18.4 19.0 28.0 12.5
1
Tamil Nadu 16.3 16.1 18.5 18.5 18.5 18.5 19.3 19.3 16.8 14.0 12.5
West Bengal 11.2 16.5 17.3 17.3 15.0 15.0 17.3 20.7 20.3 12.5 12.5
1
For 2003-04 and 2004-05, the rate applies to the selling price of upto Rs 135 PPC and Rs 145 OPC per bag.
Notes
1) The sales tax is the total tax payable (including surcharge).
2) For a selling price of above Rs 135 PPC and Rs 145 OPC per bag, the rate is 27.7 per cent.
Source: CMA

5.0 Market share and financials
Table 1: Cement - Aggregate producer market shares

(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ACC 11.08 11.41 12.21 12.78 13.47 13.65 13.20 12.42 11.94
Grasim 10.04 10.89 10.26 10.90 10.95 10.84 10.75 10.28 9.65
Ambuja Cement Ltd 7.17 8.36 8.74 9.51 10.10 10.36 9.96 9.88 10.30
India Cements 7.94 7.61 6.30 5.39 5.44 5.23 6.04 5.82 5.51
Century Textiles 5.18 5.48 5.05 4.78 4.77 5.04 4.89 4.51 4.11
Jaiprakash Inds 3.89 3.90 3.94 3.83 3.63 3.95 4.18 4.30 4.26
Birla Corp. 3.95 4.08 4.01 4.06 4.09 4.02 3.74 3.50 3.14
Lafarge 0.87 2.30 3.76 3.39 3.24 3.57 3.32 3.11 2.98
Madras Cements 2.91 2.89 3.07 3.14 3.04 2.93 3.20 3.59 3.34
JK Synthetics 2.17 2.10 2.35 2.69 2.63 2.75 2.59 2.44 2.25
Shree Cement 2.45 2.55 2.44 2.54 2.52 2.51 2.36 3.22 3.78
Kesoram Inds 2.49 2.58 2.29 2.30 2.53 2.58 2.28 2.36 2.67
Zuari Inds 1.56 1.56 1.71 2.11 2.10 2.09 2.06 2.08 1.96
JK Corp 2.00 1.94 1.92 2.01 1.98 2.02 1.97 1.89 2.04
Chettinad Cement 0.91 0.86 0.92 1.56 1.69 1.82 1.75 1.79 1.73
Binani Cement 1.80 2.02 1.95 1.96 1.94 1.85 1.72 1.62 1.77
Penna Cement - - 0.82 0.94 1.01 0.00 1.72 1.79 1.67
Orient Cement 1.38 1.32 1.44 1.41 1.50 1.66 1.57 1.46 1.44
Prism Cement 1.87 1.86 1.87 1.71 1.68 1.51 1.52 1.47 1.44
Mysore Cement 2.01 1.88 1.80 1.91 1.75 1.68 1.52 1.43 1.32
My Home Industries - - - - - - 1.2 1.15 1.50
Mangalam Cement 1.43 1.30 1.38 1.31 1.18 1.13 1.19 0.95 0.89
Dalmia Cement 1.08 1.08 1.01 1.11 1.11 1.06 1.16 1.82 1.97
OCL India 0.92 1.05 1.06 1.06 1.04 1.12 1.16 1.27 1.19
Sanghi Industries - - - - 0.62 0.97 0.81 0.93 1.50
Priyadarshini 0.85 0.78 0.73 0.64 0.26 0.65 0.71 1.08 0.96
CCI 0.72 0.32 0.60 0.49 0.52 0.67 0.70 0.69 0.54
Tamil Nadu Cement 0.80 0.84 0.71 0.73 0.76 0.67 0.57 0.49 0.40
Malabar Cements 0.47 0.49 0.40 0.38 0.41 0.46 0.51 0.42 0.34
Gujarat Sidhee Cement 0.85 0.68 0.75 0.50 0.52 0.43 0.48 0.60 0.75
KCP 0.52 0.40 0.37 0.46 0.41 0.40 0.39 0.41 0.43
Andhra Cements 0.68 0.73 0.81 0.68 0.57 0.62 0.24 0.41 0.67
Indo Rama Cement - 0.37 0.50 0.51 0.52 0.51 0.36 0.37 0.40
Kalyanpur Cement 0.61 0.65 0.62 0.52 0.30 0.30 0.33 0.39 0.32
Shriram Cements 0.30 0.31 0.28 0.27 0.26 0.27 0.29 0.25 0.22
Saurashtra Cement 1.02 0.73 0.85 0.68 0.50 0.42 0.29 0.43 0.83
J and K 0.11 0.13 0.14 0.11 0.10 0.12 0.12 0.10 0.09
Kanoria Inds 0.27 0.19 0.19 0.15 0.17 0.11 0.08 0.01 0.00
Mawnluh Cherra 0.13 0.13 0.10 0.10 0.09 0.08 0.07 0.07 0.05
Panyam Cements 0.23 0.12 0.14 0.03 0.09 0.06 0.01 0.00 0.25
Idcol Cement 0.58 0.78 0.71 0.79 0.45 - - - -
DLF Cement 1.41 - - - - - - - -
JK Udaipur Udyog 0.63 0.48 0.72 0.00 - - - - -
Raymond Woollens 1.77 1.39 - - - - - - -
Sri Vishnu Cement 0.41 - - - - - - - -
Tisco 0.95 - - - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note
Market share is calculated based on consumption.
Source: CMA

Table 2: Cement - Region-wise market shares
(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
North 31.3 31.2 31.8 31.7 31.9 31.7 30.4 30.7 30.4
ACC 14.5 15.6 15.4 15.4 16.2 16.3 16.9 16.5 17.0
Ambuja cement Ltd 8.7 13.2 13.0 12.9 13.5 14.2 15.0 14.1 13.5
Grasim 9.9 9.9 10.4 12.0 12.1 12.1 12.1 12.1 12.4
Birla Corp 9.0 9.2 8.7 8.5 8.7 8.6 8.4 8.1 7.3
Jaiprakash Inds 8.6 8.7 9.1 8.6 7.8 8.0 8.6 9.4 9.0
Shree Cement 7.6 7.9 7.4 8.0 7.9 7.9 7.8 10.5 12.6
West 27.8 28.0 25.4 25.0 25.1 26.1 24.2 23.6 24.5
Grasim 16.3 16.7 14.7 14.6 13.6 13.7 13.3 12.5 10.9
ACC 7.9 8.2 9.1 10.4 10.0 9.7 10.1 9.8 9.1
East 13.0 14.3 16.5 15.8 15.4 16.8 16.7 16.1 15.4
Lafarge 5.7 12.8 20.4 18.7 18.9 18.3 17.3 18.0 18.7
ACC 17.2 15.3 15.4 14.3 16.2 17.3 17.2 16.7 16.9
Grasim 5.7 6.2 6.8 6.9 7.2 7.2 8.3 7.7 7.1
South 27.9 26.5 26.3 27.6 27.7 25.4 28.7 29.5 29.7
India Cements 25.9 25.4 21.4 18.3 18.1 18.1 18.8 17.7 17.3
ACC 7.5 7.7 9.4 11.0 11.9 12.0 9.6 8.0 7.3
Madras Cements 10.3 10.8 11.5 11.3 10.8 11.2 10.9 11.7 11.3
Grasim 6.0 8.4 8.0 8.6 9.2 8.8 8.6 8.1 7.8

Table 3: Cement - Net sales of companies
(Rs million) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC 23,058 25,579 27,847 27,878 31,912 37,860 41,953 56,631
Andhra Cement 961 1,289 1,491 1,158 1,072 1,362 n.a. 1,028
Ambuja Cement Rajasthan1* 1,519 2,535 2,363 2,532 n.a. n.a. n.a. n.a.
Binani Cement 2,756 3,399 3,664 3,662 3,743 4,383 4,903 6,781
Birla Corp 8,684 8,768 9,587 9,427 10,461 12,298 12,088 16,212
Century Textiles 21,499 22,119 22,431 22,412 22,953 25,915 26,165 32,160
Chettinad Cement 1,950 1,901 2,071 2,695 3,265 4,020 5,214 7,724
Dalmia Cement 3,173 3,603 3,649 3,844 3,649 4,460 5,683 9,816
Grasim 42,743 44,615 43,740 45,960 52,111 61,821 65,977 85,789
Ambuja cement Ltd 11,159 12,685 13,828 17,391 19,607 25,955 25,965 62,262
India Cements 11,684 12,316 9,967 8,388 10,029 11,480 15,279 22,519
JK Corp3 n.a. 8,428 3,561 3,746 5,618 4,893 5,843 8,433
JK Synthetics 4,170 4,119 5,059 5,983 6,267 4,579 n.a. n.a.
4
Jaiprakash Industries 12,280 16,246 15,539 25,015 24,248 n.a. n.a. n.a.
KCP 1,073 1,146 1,123 1,137 1,187 1,439 1,748 2,621
Kanoria Inds5 249 274 321 213 274 n.a. 172 44
Kesoram Inds 6,083 11,164 11,225 11,622 13,144 14,324 16,246 22,174
Madras Cements 5,053 6,075 6,947 6,174 6,860 7,287 9,989 15,730
Mangalam Cement6 2,235 945 2,563 2,089 2,734 3,008 3,010 2,253
7
Mysore Cement 2,512 3,567 3,959 4,352 3,437 4,064 4,337 3,952
OCL India 2,677 2,772 2,577 3,106 3,830 4,845 5,962 8,074
Panyam Cements 827 619 677 457 507 n.a. 109 944
Prism Cement8 2,840 3,990 3,512 3,162 3,667 4,248 4,249 7,555
Priyadarshini 1,587 1,978 2,111 n.a. 1,711 6 n.a. n.a.
Raasi Cement 3 - - - - - n.a. n.a.
Shree Cement9 4,093 4,661 3,328 4,833 4,934 6,013 6,933 13,995
Shree Digvijay10 2,045 2,271 1,749 1,893 1,401 898 2,165 2,555
Sri Vishnu Cement 1,081 1,206 1,022 968 1,023 1,287 2,054 2,123
Ultratech Cement Ltd. 68,869 70,395 - - 22,564 26,676 32,944 48,943
Zuari Inds. 13,221 12,101 12,290 11,740 12,121 17,796 21,913 24,036
n.a.: Not available
1
Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended June
3
Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended
September 2001
4
Jaiprakash Industries has been merged with Jaiprakash Associates from 2002-03
5
Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9-month period from
July 1999 to March 2000
6
Financials for 2000-01 are for the year ended September 2001
7
Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999.
Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000
8
Financials are for a 15-month period, from April 2000 to June 2001
9
Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June.
The figures for 2001-02 figures are for 9 months, from July 2001 to March 2002.
10
Financials for 1998-99, are for an 18-month period from April 1998 to September 1999.
*
Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd.
Note
Net sales excludes indirect taxes.

Table 4: Cement - Operating profit margins of companies
(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC 9.8 14.6 16.6 15.0 17.0 19.2 18.0 29.3
Andhra Cement -9.5 9.2 33.5 6.8 -9.3 16.3 n.a. n.a.
Ambuja Cement Rajasthan1* -5.5 9.04 19.4 17.7 n.a. n.a. n.a. n.a.
Binani Cement 24.9 26.3 30.0 26.8 29.7 25.3 27.6 34.7
Birla Corp 5.4 7.5 7.4 7.8 9.9 11.8 14.9 30.7
Century Textiles 14.7 14.8 13.8 14.6 12.8 11.8 12.0 18.9
Chettinad Cement 32.0 28.5 24.7 25.0 25.3 23.6 22.6 30.8
Dalmia Cement 23.5 24.5 23.4 19.5 21.9 17.9 15.0 25.7
Grasim 17.3 20.6 19.5 21.4 28.9 28.5 21.3 27.8
Ambuja cement Ltd2 63.2 37.7 34.5 31.9 33.9 31.0 27.9 34.3
India Cements 22.9 26.3 29.2 16.5 14.7 18.9 17.1 32.6
JK Corp3 n.a. 20.8 7.8 19.8 14.3 16.8 20.8 30.2
JK Synthetics 9.5 4.5 9.7 10.1 6.9 99.2 n.a. n.a.
KCP 11.6 22.4 25.0 11.9 12.5 17.3 15.0 30.8
Kanoria Inds4 -12.4 -9.6 -0.7 -40.2 -13.9 -30.6 n.a. -86.2
Kesoram Inds 18.9 16.2 13.2 11.5 13.0 8.8 8.2 18.5
Madras Cements 30.1 29.0 26.0 25.1 24.6 22.6 21.5 35.7
Mangalam Cement5 10.7 -26.4 10.2 5.8 -1.8 63.7 11.6 30.0
Mysore Cement6 -1.8 3.2 7.7 6.3 5.9 9.0 3.7 13.5
Narmada Cement 3.3 3.5 5.9 n.a. 3.3 -3.5 n.a. n.a.
OCL India 14.0 12.2 12.9 15.9 18.1 15.9 14.6 20.1
Panyam Cements 8.5 -0.8 -24.5 -9.3 -34.0 -41.2 -222.2 18.7
Prism Cement7 20.7 25.2 23.2 17.4 21.3 23.8 22.8 43.6
Priyadarshini 19.9 25.3 14.1 n.a. 52.1 -125.8 n.a. n.a.
8
Shree Cement 22.0 21.5 25.1 22.5 26.0 29.1 28.6 42.4
Shree Digvijay9 -38.0 7.4 5.6 12.5 6.9 2.2 19.0 22.3
Sri Vishnu Cement 5.7 15.8 12.6 0.9 4.5 5.4 10.9 25.5
Ultratech Cement Ltd. - - - - 18.4 13.6 17.1 29.1
Zuari Inds. 8.8 6.5 5.7 7.6 7.3 5.7 3.8 3.8
n.a.: Not available
1
Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year
ended in June
2
Financials are for the year ended in June
3
September 2001
4
Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 month period
from July 1999 to March 2000
5
6
Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended
June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000
7
8
Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year
ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002.
9
Financials for 1998-99, are for an 18 month period from April 1998 to September 1999.
*
Note
Operating profit margin has been calculated as profit before depreciation, interest and tax divided by net sales.

Table 5: Cement - Net profit margins of companies
(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC -2.7 2.2 4.7 3.7 6.3 10.0 17.3 16.9
Andhra Cement -29.9 -5.3 24.11 -7.0 -26.2 1.77 n.a. -55.2
Ambuja Cement Rajasthan1* -44.3 -23.5 -13.2 -10.1 n.a. n.a. n.a. n.a.
Binani Cement -13.1 -4.3 1.7 0.3 1.1 1.47 10.8 14.4
Birla Corp -4.4 -1.6 -0.1 0.4 4.1 7.06 10.4 18.8
Chettinad Cement 3.3 3.9 -5.6 -2.6 4.3 6.96 7.68 13.9
Dalmia Cement 6.7 8.0 7.0 5.2 6.4 7.23 14.93 7.7
Grasim 5.5 8.5 6.9 8.0 15.0 14.3 13.1 14.7
India Cements 1.7 3.9 -0.3 -24.0 -9.6 0.4 2.97 20.8
JK Corp3 n.a. -22.0 -20.6 -5.5 -5.6 5.3 9.5 19.7
JK Synthetics -11.8 -16.1 -7.3 2.5 -0.9 91.0 n.a. n.a.
KCP -8.5 5.0 7.0 -1.6 1.0 6.7 10.0 17.1
Kesoram Inds 2.6 4.2 3.7 2.5 4.8 2.3 2.8 10.9
Madras Cements 7.5 7.3 3.7 2.1 4.9 7.7 7.9 19.3
Mangalam Cement4 -7.0 -48.8 -8.3 -12.1 -26.8 54.6 5.6 20.5
5
Mysore Cement -23.4 -17.1 -5.1 -5.6 -10.5 -6.1 -20.7 -3.3
Narmada Cement -12.8 -10.1 -7.4 n.a. -22.9 -32.8 n.a. n.a.
OCL India 2.2 2.2 2.6 5.9 5.9 5.8 6.3 6.8
Panyam Cements -8.4 -17.9 -40.0 -27.8 -54.5 -70.6 -311.9 10.7
Prism Cement6 -9.8 -4.2 -2.5 -9.9 -1.6 6.1 6.1 25.1
Priyadarshini -5.5 1.3 -5.7 28.8 -175.8 n.a. n.a.
Shree Cement7 3.8 5.6 0.4 1.6 2.6 4.8 2.7 4.5
Shree Digvijay8 -55.4 -10.0 -18.5 -11.3 -24.3 -11.1 22.5 18.7
Sri Vishnu Cement -6.7 5.7 0.2 -13.4 -7.8 -3.5 6.4 17.3
Ultratech Cement Ltd - - - - 1.8 0.1 7.0 14.4
Zuari Inds -1.6 2.0 1.0 1.8 1.6 1.5 1.2 -1.9
n.a.: Not available
1
Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year
ended in June
2
3
September 2001
4
5
6
7
Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year
ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002.
8
Financials for 1998-99, are for an 18 month period from April 1998 to September 1999.
*
Note
Net profit margin has been calculated as profit after tax divided by net sales.

Table 6: Cement - Debt-equity ratio
(times) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC 1.4 1.6 1.7 1.5 1.1 1.0 0.5 0.25
Andhra Cement -0.9 -0.9 -0.9 -1.1 -1.0 n.a. n.a. n.a.
Binani Cement 1.1 1.2 1.1 1.8 1.8 2.2 2.2 2.29
Birla Corp 1.6 1.2 1.3 1.3 0.9 0.8 0.6 0.34
Dalmia Cement 1.2 1.1 1.3 1.2 1.1 1.9 2.0 1.5
Grasim 0.8 0.6 0.8 0.7 0.6 0.5 0.4 0.47
India Cements 2.2 2.4 3.0 4.4 5.6 5.8 1.9 1.48
JK Corp3 3.6 5.4 6.4 n.a. 7.5 5.6 3.8 1.84
JK Synthetics -1.8 -1.2 -1.4 -1.4 -1.3 n.a. n.a. n.a.
Jaiprakash Industries 1.4 1.4 1.4 n.a. n.a. n.a. n.a. n.a.
KCP 1.0 0.7 0.6 0.6 0.6 0.5 0.6 0.5
4
Kanoria Inds 0.8 -1.4 -1.0 -0.8 -0.7 n.a. n.a. n.a.
Kesoram Inds 1.2 1.8 1.5 1.4 1.3 1.4 1.4 1.22
Madras Cements 1.5 1.8 2.8 2.7 2.2 2.1 1.5 1.02
5
Mangalam Cement 5.8 -6.6 -3.4 -2.0 2.2 5.4 2.5 0.48
Mysore Cement6 3.3 13.3 7.5 17.3 n.a. n.a. -2.8 n.a.
OCL India 0.9 0.9 1.0 1.3 1.4 2.0 1.9 1.17
Panyam Cements 3.6 -12.4 -1.5 -1.0 1.4 n.a. -0.4 n.a.
Prism Cement7 3.0 2.4 1.8 2.1 1.9 1.3 1.3 0
Priyadarshini 3.1 3.3 3.6 4.0 n.a. n.a. n.a. n.a.
Shree Cement8 1.6 1.3 1.4 1.8 1.4 1.1 1.4 2.5
Shree Digvijay9 -1.7 -1.4 -1.5 -1.2 1.6 -1.3 -1.5 1.7
Zuari Inds 1.8 0.8 1.0 1.5 1.7 1.6 2.1 1.1
n.a.: Not available
1
Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended
in June
2
3
September 2001
4
Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 month period from
July 1999 to March 2000
5
6
Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999.
Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000
7
8
Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended
in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002.
9
Financials for 1998-99, are for an 18-month period from April 1998 to September 1999
Note
Debt-equity ratio has been calculated as total borrowings divided by networth.

Table 7: Cement - Return on capital employed
1999-
(per cent) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
2000
ACC 9.1 13.3 18.3 16.6 19.7 23.6 21.02 42.34
Andhra Cement 36.5 -32.2 -19.4 44.0 89.2 -89.8 n.a. n.a.
Ambuja Cement Rajasthan1* -2.1 5.7 12.3 12.6 n.a. n.a. n.a. n.a.
Binani Cement 11.9 15.4 18.1 15.5 17.3 15.0 11.14 22.04
Birla Corp 9.7 13.3 14.9 15.5 23.1 27.0 23.14 72.17
Dalmia Cement 15.3 17.2 17.6 14.8 15.1 10.5 12.04 16.63
Grasim 14.6 18.5 17.9 19.5 26.5 27.8 17.56 28.5
India Cements 11.3 12.6 12.2 6.4 6.1 9.4 7.71 23.8
JK Corp3 n.a. 11.6 3.0 8.2 6.4 10.0 8.18 22.41
Jaiprakash Industries n.a. 18.6 14.3 23.2 20.6 17.2 n.a. n.a.
KCP 6.4 15.0 17.8 8.9 9.9 17.0 17.63 45.93
Kesoram Inds 15.3 18.9 18.3 17.5 21.9 14.4 10.7 39.51
Madras Cements 16.5 15.6 18.1 16.0 18.7 16.1 12.56 44.25
Mangalam Cement5 14.6 -40.8 23.5 21.3 -30.0 128.3 20.63 36.77
Mysore Cement6 -1.6 3.2 8.7 8.6 6.9 13.1 -24.66 19.16
Narmada Cement 5.3 6.3 13.4 n.a. 4.1 -12.8 n.a. n.a.
OCL India 14.1 12.5 13.9 16.2 20.1 15.2 11.35 25.3
Panyam Cements 13.2 -1.1 n.m. n.m. 72.2 37.3 47.53 n.a.
Prism Cement7 11.2 15.7 16.0 11.6 17.8 24.1 13.82 78.75
Priyadarshini 15.1 24.3 14.7 n.a. 76.5 -0.7 0.47 1.25
Saurashtra Cements 0.9 2.8 -1.0 8.1 -0.2 5.5 5.3 16.95
Shree Digvijay8 -63.0 19.3 16.8 33.7 24.3 6.0 n.a. 18.72
Shree Cement 16.2 17.8 21.4 17.7 21.4 28.7 5.28 58.5
Tamil Nadu Cements -12.8 -2.5 5.5 8.5 n.a. n.a. 29.48 12.59
Zuari Inds 12.4 12.2 9.5 10.5 9.6 10.5 7.39 8.91
n.a.: Not available
n.m.: Not meaningful
1
Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended June
2
3
Financials are for a 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended
September 2001
4
Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9-month
period from July 1999 to March 2000
5
6
7
8
Financials for 1993-94 and 1994-95 period, are for year ended in June. Financials for 1995-96 are for a 9-month
period from June 1995 to March 1996. Financials for 1998-99, are for an 18-month period from April 1998 to September 1999
*
Notes
1) Return on capital employed has been calculated as profit before depreciation, interest and tax divided by capital employed.
2) Capital employed is networth plustotal debt.

6.0 Exports
Table 1: Cement - Company-wise exports

('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Ambuja cement Ltd 493 929 1195 1644 1756 1908 1522 1586 1006
Ultratech Cement Ltd 318 737 1013 706 719 868 1505 1132 601
Jaiprakash Inds 269 330 335 343 257 255 278 225 145
Birla Corp 218 268 200 191 121 112 95 36 44
ACC 163 210 195 128 73 70 52 59 30
Prism Cement 58 86 116 104 91 77 81 11 16
Lafarge 22 97 109 100 65 76 74 22 10
Century Textiles 99 140 134 86 16 27 13 23 19
Grasim 52 105 29 80 71 29 79 12 -
Madras Cements - 0 32 44 85 85 228 78 -
Saurashtra Cement - 15 4 28 61 285 657 632 286
OCL India 52 32 4 7 - - - - -
Dalmia Cement 8 3 7 4 7 12 6 8 5
India Cements 3 1 2 2 37 161 267 93 3
Mysore Cement 2 - - 2 2 12 0 - 2
Sanghi Industries Ltd - - - - 2 54 694 1032 700
Kalyanpur Cement 54 30 2 1 0 - - - -
Chettinad Cement - 1 7 - - 3 - - -
Gujarat Sidhee Cement 0 32 - - - 31 291 376 256
Zuari Inds - - - - - 7 149 85 -
Indo Rama Cement - - - - - - 22 - -
Idcol Cement 4 - - - - - - -
5
Raymond Woollens 129 115 - - - - - - -
Shree Digvijay 15 21 - - - - - - -
Tisco 22 - - - - - - - -
Total 1,984 3,157 3,383 3,470 3,363 4,072 6015 5409 3124
Source: CMA

Table 2: Cement - Country-wise exports
('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Nepal 817 1,114 1,166 1,050 701 665 558 377 266
Africa - - 726 - - - - - -
Sri Lanka 0.4 24 44 45 86 102 101 106 -
Bhutan - 26 5 20 23 4 7 4 -
Maldives 11 4 10 7 21 38 43 31 8
Iraq - - - - 28 3 1,028 1,426 787
Bangladesh 528 485 59 - - - - - -
Myanmar - - - - - 4- - -
Spain - 29 - - - - - - -
UAE 5 - - - 16 55 183 81 30
Yemen - - - - - - 103 173 29
Somalia - - - - 7 3 8 - -
Madagascar - - - - - 11 41 5 -
Mozambique - - - - - 14 - 14 -
Kuwait - - - - - 15 85 45 -
Qatar - - - - - 47 281 154 125
South Africa 475 700 465 274 21 105 56 31 42
Seychelles - - - - 3 2 9 - -
Others 112 754 909 2,072 2,456 3,002 3,512 2,976 1,837
Total 1,949 3,136 3,383 3,470 3,363 4,072 6,015 5,424 3,124
Source: CMA
Table 3: Clinker - Company-wise exports

('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Ultratech Cement Ltd 1,134.7 1,628.5 1,258.1 2,065.5 2,777.7 2,638.0 1,118.1 2,194.4 1,572.5
Gujarat Sidhee Cement - - 11.3 522.9 457.7 477.9 221.9 74.6 -
Sanghi Industries Ltd - - - - 266.1 782.4 739.7 378.4 45.6
Grasim 7.4 87.2 48.2 262.6 194.8 279.6 138.7 - 31.6
Saurashtra Cement - - - 166.8 425.3 223.7 42.0 8.5 29.6
Jaiprakash Inds 0.4 62.7 79.0 141.2 152.9 89.4 59.1 36.6 -
Lafarge - 4.4 114.2 129.9 27.1 23.6 - - -
Mysore Cement - - - 37.0 37.3 112.6 112.3 3.5 -
Madras Cements - - - 17.5 0.8 88.0 288.8 - -
Prism Cement 5.3 8.4 24.0 12.8 86.1 209.9 250.8 191.0 223.7
Zuari Inds - - - - - 14.8 28.4 - -
Birla Corp - 2.7 5.3 11.2 - 0.3 21.5 - 7.4
Ambuja cement Ltd - 83.9 13.2 11.1 9.0 7.2 - - -
Priyadarshini - - - - - 2.7 - - -
ACC 0.3 - 4.1 4.3 17.2 - 3.0 2.0 -
OCL India 1.9 - 8.6 2.3 - - - - -
Raymond Woollens 33.7 77.0 - - - - - - -
India Cements - - - - 229.5 799.4 155.7 - -
Mangalam Cement - - - - 3.5 - - 118.3 91.0
Penna Cement - - - - - - - 6.9 -
Shree Cement - - - - - - - 23.3 59.5
Meghalaya Cement - - - - - - - 5.5 8.0
Total 1,192 1,974 1,603 3,455 4,749 5,812 3,225 3,047 2,121
Source: CMA

Table 4: Clinker - Country-wise exports
('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
UAE - - - 516 641 727 428 148 46
Nepal 11 67 169 312 394 489 487 406 485
57 211 196 151 222 581 91 68 -

Bangladesh
Bhutan 5 2 9 26 18 7 - 3 8
Sri Lanka - - - 18 74 220 97 - -
Africa - 84 - - - - - - -
Bahrain - - - - - - 20 - -
South Africa - 36 - - - 51 - - -
Spain - - - 109 - 135 191 - -
Kuwait - - - - 41 94 - - -
Oman - - - - 34 67 108 174 32
Jordan - - - - - 36 - - -
Tanzania - - - - - 28 - - -
Iran - - - - 50 25 138 40 -
Mozambique - - - - - 24 57 - -
Others 1,119 1,659 1,229 2,298 3,083 3,067 1,665 2,227 1,600
Total 1,192 2,058 1,603 3,429 4,558 5,550 3,225 3,067 2,169
Source: CMA

7.0 Cost
Table 1: Company-wise limestone cost

(Rs/tonne of limestone) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC 114 113 116 29 31 35 43 46
1
Ambuja Cement Eastern 69 85 81 67 75 n.a. n.a. n.a.
Andhra Cements 58 67 72 72 74 78 99 109
Binani Cement 46 59 53 54 59 75 80 91
Birla Corp 106 110 119 112 109 116 126 131
Century Textiles 85 97 104 113 110 117 127 132
Chettinad Cement 109 116 133 124 126 144 181 235
Dalmia Cement 103 114 132 126 138 143 155 145
Grasim 62 75 78 77 79 80 82 130
1
Ambuja cement Ltd n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
India Cements 113 122 121 128 119 122 135 140
2
Jaiprakash Inds 77 84 80 86 91 90 99 106
3
JK Corp 78 95 90 90 90 94 105 109
JK Synthetics 82 95 97 98 100 98 98 n.a.
JK Udaipur Udyog n.a. n.a. 148 - n.a. n.a. n.a. n.a.
Kesoram Inds 84 88 100 97 94 100 114 126
KCP 96 116 118 119 110 118 138 174
Madras Cements 102 104 99 107 110 114 141 158
Mangalam Cement3 102 117 125 125 125 134 170 191
Mysore Cement 159 168 149 148 158 160 191 212
Narmada Cement 61 60 63 63 42 67 n.a. n.a.
OCL India 176 172 145 162 151 155 163 207
Panyam Cements 33 39 69 48 49 72 99 84
Priyadarshini 17 17 20 18 18 n.a. n.a. n.a.
Saurashtra Cement1 63 78 65 65 67 72 83 105
1
Shree Cement 109 122 117 125 135 122 126 132
Sri Vishnu Cement 59 75 80 43 135 42 48 49
Ultratech Cement Ltd - - - - 38 39 78 85
n.a.: Not available
1
Figures provided are for the financial year ending June
2
Figures for 1995-96 are for the financial year ending June
3
Figures for 1999-2000, 2000-01, 2001-02 are for the financial year ending September

Table 2: Company-wise coal costs
(Rs/tonne of cement) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
ACC 267 253 225 259 255 268 276 334
Andhra Cements 329 353 289 339 292 300 381 319
Binani Cement 327 373 392 n.a 330 408 n.a 391
Birla Corp 225 - - 332 333 353 364 430
Dalmia Cement 243 300 293 272 264 364 457 486
DLF Cement 231 354 349 301 - - - -
Grasim 390 466 445 423 485 556 515 470
Ambuja cement Ltd 234 253 240 243 245 303 274 315
Gujarat Sidhee Cement 273 320 312 522 525 824 506 452
India Cements 286 341 362 317 281 482 395 381
Jaiprakash Inds 210 218 233 231 232 319 342 940
1
JK Corp 359 555 272 272 246 369 307 299
JK Synthetics 465 431 354 413 384 470 n.a n.a
Kanoria Inds 292 309 315 262 291 328 186 n.a
KCP 292 309 265 262 291 330 406 n.a
Madras Cements 231 249 208 205 219 294 281 288
Mangalam Cement 338 335 161 347 388 465 476 261
Narmada Cement 260 318 271 273 409 403 403 n.a
OCL India 121 122 113 122 137 153 201 194
Panyam Cements 349 449 351 470 599 448 385 n.a
1
Prism Cement 233 224 243 251 251 339 370 398
Priyadarshini 270 289 272 301 446 n.a n.a n.a
Shree Cement 290 219 172 154 198 288 253 302
Sri Vishnu Cement 323 367 272 284 250 345 400 n.a
Ultratech Cement Ltd - - - - 283 357 328 396
n.a.: Not available
1
The financial year ending of JK Corp, Prism Cement is June.

Table 3: Company-wise power consumption
(kWh/tonne) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1, 5
ACC 96 97 92 90 90 86 88 89
Ambuja Cement Eastern 87 91 93 98 99 92 n.a. n.a
Binani Cement 84 80 79 78 77 77 n.a. 75
Birla Corp 98 94 92 87 84 85 84 83
Dalmia Cement 93 87 84 75 71 75 76 77
DLF Cement 104 99 100 91 - - - -
Grasim 90 90 91 85 85 85 80 70
Ambuja cement Ltd 89 86 86 86 86 84 86 84
1
India Cements 101 97 92 94 127 125 130 130
Jai Prakash Inds 104 99 95 90 89 86 87 86
2
JK Corp 87 88 88 88 86 84 82 83
JK Synthetics 103 103 103 103 96 93 n.a. n.a
JK Udaipur Udyog 113 - 115 n.a. n.a. n.a. n.a. n.a
Kanoria Inds 123 133 122 111 110 127 122 0
Kesoram Inds 94 88 88 86 79 76 78 77
KCP 100 98 94 89 84 83 85 89
Madras Cements 82 82 77 74 72 72 72 73
3,4
Mangalam Cement 86 86 91 0 182 182 179 91
Mysore Cement 103 96 92 86 84 88 93 n.a
Narmada Cement 103 97 98 99 92 94 n.a. n.a
OCL India 87 84 82 94 94 91 85 87
Panyam Cements 133 124 127 131 145 133 105 155
Prism Cement 90 86 81 81 79 79 76 72
Priyadarshini 97 95 93 93 93 93 n.a. n.a
Raasi Cement - - - - -
Raymond Woollens 79 80 - - - - - -
Saurashtra Cement n.a. 104 97 97 98 101 106 104
Shree Cement n.a. 78 79 76 77 75 73 74
Sri Vishnu Cement 110 108 102 100 97 99 94 n.a
Ultratech Cement Ltd 94 91 91 88 84 87 89 87
n.a.: Not available
1
Figures are with respect to the dry process
2
Figures are with respect to grey cement.
2
Figures for 1999-2000 are for 18 months, with a September year-ending
4
Figures for 1999-2000 are for the 9 month period, with the year ending June.
3
Figures are with respect to the new unit
4
5
From 2005-06, Figures are as of December

Table 4: Company-wise coal cost
(Rs/tonne of coal) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
6
ACC 1,716 1,652 1,675 1,768 1,810 1,953 2,181 2,178
1
Ambuja Cement Eastern 287 301 313 313 318 n.a. n.a. n.a.
Ambuja Cement Rajasthan1,5 401 461 450 447 n.a. n.a. n.a. n.a.
Andhra Cements 1,777 1,897 1,767 2,027 2,029 2,073 2,004 2,004
Binani Cement 2,141 2,597 2,597 5,308 5,407 3,639 n.a. 3,440
Birla Corp 1,707 n.a. n.a. 1,890 1,915 2,204 2,068 2,268
Century Textiles 1,430 1,588 1,705 1,703 n.a. 1,928 2,024 2,142
Chettinad Cement 2,439 3,009 2,989 3,114 2,913 3,674 3,533 4,076
Dalmia Cement 2,089 2,412 2,658 2,620 2,579 3,528 3,431 3,551
Deccan Cement1 350 345 381 402 413 522 474 504
DLF Cement 401 461 450 447 n.a n.a n.a 3,183
Grasim 2,031 2,049 2,049 2,049 2,104 2,325 2,400 2,410
Ambuja cement Ltd1, 6 353 395 387 357 394 505 503 503
1
India Cements 1,947 2,411 2,534 2,568 2,644 3,073 3,192 3,183
Jaiprakash Inds 1,581 1,579 1,674 1,774 1,822 2,081 2,071 2,230
JK Corp4 2,204 1,761 2,699 2,366 2,569 3,472 3,308 4,000
JK Synthetics 2,506 2,675 2,724 n.a 2,722 3,308 n.a. n.a.
Kanoria Inds 2,039 2,014 2,266 2,359 2,586 2,529 2,742 n.a.
Kesoram Inds 1,887 1,673 1,498 1,588 1,581 1,624 1,815 1,876
KCP 1,899 1,934 1,887 1,880 1,908 2,104 2,479 2,742
Madras Cements 1,966 2,360 2,517 2,295 2,541 3,341 3,159 3,393
3
Mangalam Cement 2,414 2,414 1,994 2,130 2,310 2,543 2,652 2,635
Mysore Cement1 401 401 417 412 442 511 570 638
Narmada Cement 1,783 2,146 2,533 2,010 2,462 3,390 n.a. n.a.
OCL India 761 756 875 965 945 1,208 1,488 1,617
Orient Cement 1,236 n.a. n.a. n.a n.a n.a n.a n.a
Panyam Cements 1,836 1,797 1,788 1,809 n.a. n.a. 1,819 2,354
Prism Cement 1,421 1,461 1,669 1,701 1,838 2,006 2,198 2,382
Priyadarshini 1,614 1,778 2,127 n.a n.a n.a n.a n.a
Raymond Woollens 1,147 1,223 - - - - - -
Shree Cement 2,380 2,334 2,016 1,861 2,242 3,189 3,118 3,610
Sri Vishnu Cement 1,638 2,079 1,817 1,805 1,669 1,976 2,158 2,256
Ultratech Cement Ltd - - - - 1,587 1,904 1,888 2,396
Zuari Inds. 2,003 - - - - - - -
n.a.: Not available
1
Figures denote average rate in Rs per million kCal
2
Figures includes cost of lignite
3
4
Figures for 1999-2000 are for 18 months with the year ending in September
5
Figures for 1999-2000 are for 9 months with the year ending in June
6
Figures for ACC from 2005-06 are as of December

Cement AR 0708

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Cement

Annual Review July 2008

CRISIL Research expects

About CRISIL Limited

About CRISIL Research

Executive summary A-1

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-i

2.0 Excess capacity will lead to a fall in prices

A-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

3.0 Cement companies will lack pricing flexibility

2.0 Excess capacity will lead to a fall in prices

3.0 Cement companies will lack pricing flexibility

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-iii

Figure 1: Demand-supply scenario in cement industry

Cement Capacity Cement Consumption

Cement prices to take a beating

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-1

Figure 2: Operating Margins on downward trend

A-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Figure 1: Growth in cement consumption

North East South West Central All-India

Box 1: Demand forecasting methodology

G FCF - Cons truc tion

Domes tic c ement c ons umption

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-3

NORTH 2002-03 2007-08

CENTRAL 2002-03 2007-08

WEST Cement production 16.7 22.7

SOUTH 2002-03 2007-08

Note: All numbers are in million tonnes, except where stated.

Housing sector to be the key demand driver

Table 1: Housing demand forecast

A-4 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Infrastructure investments to continue to boost cement consumption

Figure 2: Comparison of infrastructure investments - 2001-02 to 2006-07 and 2006-07 to 2011-12

2001-02 to 2006-07 2006-07 to 2011-12 Growth multiple

Source: CRISIL Research

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-5

Northern region - real estate and infrastructure to drive demand

Figure 3: Cement consumption and production – North

A-6 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Chart 2: Net outbound movement (domestic) in the northern region in 2007-08

(mn tonnes) 2002-03 2007-08

Eastern region dependent on industrial projects

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-7

Figure 4: Cement consumption and production – East

Southern region - growth momentum to continue

Figure 5: Cement consumption and production – South

A-8 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Chart 3: Net outbound movement (domestic) in southern region in 2007-08

(mn tonnes) 2002-03 2007-08

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-9

Central region - cement consumption to be sustained

A-10 CRISIL RESEARCH CEMENT ANNUAL REVIEW

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-11

Figure 1: Incremental cement capacity and consumption

2002-03 to 2007-08 2008-09 to 2012-13P

Large capacity additions to pull down operating rates

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-13

Cement capacity addition (mn tonnes) Utilisation rates (%)

Cement prices to decline by Rs 15-20 per bag in the next 2 years

Figure 3: Clinker operating rates and cement prices