Future scope of cement industries in India

The cement industry that has seen a boom in the recent years has gone
forward in making development in all of its possible areas. The scope of
production along with units, installation and the capacity ending in
dispatch, are well seen through. The sector expects to add a
supplementary capacity of 92.3 mt by 2013 which high-rise the capacity
to 383.5 mt in total by March 2013. With certain up coming huge projects
the manufacturers and the company itself are forcefully increasing the
production during the period from 2010-2014.

Production and Installed Capacity of certain cement companies

Net profit
Installed
Company Production (2008-2009)
Capacity
(Rs Lakhs)
ACC 17,902 18,640 41,550.89
151.4 Mil.T. 164.7 Mil.T. (As
Ambuja 31,848
(2006 Est.) of Sep-06)
Ultratech 13,707 17,000 97,700
Grasim 14,649 14,115 1,64,800
India Cements 8,434 8,810 43,218
JK Group 6,174 6,680 14,234.40
Jaypee Group 6,316 6,531 -------
Century 6,636 6,300 -------
Madras Cements 4,550 5,470 49,081
Birla Corp. 5,150 5,113 9,061

Income and the profit incurred by the companies

Total
Company Income in Year Net Profit Year
Name (Rs ending in Rs Ending
Million)
ACC 80742.6 Dec 2010 11200.1 Dec 2010
Ambuja 75948.7 Dec 2010 12636.1 Dec 2010
Ultratech 71723.9 Mar 2010 10932.4 Mar 2010
Grasim 85478.7 Mar 2010 20921 Mar 2010
India
99.67 Mar 2010 32.753 Mar 2010
Cements
JK Group 18538.624 Mar 2010 2259.986 Mar 2010
1729.12583
Jaypee Group Mar 2008 175.396695 Mar 2008
9
Century 46231.3 Mar 2010 3561.6 Mar 2010
Madras 28213.6489 3536.77339
Mar 2010 Mar 2010
Cements 96 5
Birla Corp. 22953.428 Mar 2010 5571.809 Mar 2010
Sales Report of Leading Cement Companies in India
Sales
Company Sales Value
Year Month % of STO
Name Quantity (Rs.Milli
on)
ACC 2010 77173.30
19996513
Ambuja 2010 12 81684.50 98.58
.00
Ultratech 2010 03 177.65 60746.00 78.59
9138421.
Grasim 2010 03 38139.80 43.14
00
India
2010 03
Cements
WhiteCe
ment
300120.0
0
JK Group 2010 03 Portland/ ------ ------
Pozzolana
Cement
4254878.
00
Jaypee
2010 03
Group
7389994.
Century 2010 03 29207.80 59.48
00
Madras
2010 03 21570.28
Cements
5565502.
Birla Corp. 2010 03 22158.12 92.83
00

Factors and causes behind the successful flourishing of the

cement industries in India

Technological change: The government and the industries are upgrading

the quality and the technology that are used in the process of
production.
New investment are in process that are sure to make a change in whole
processing and the output of cement
There are host of companies are merging together to make there capacity
and the produce big and this would lead to a greater development
in the cement production.
The real estate market is much optimistic and hence this helps in the
growth and the enhancement in the field of cement production and
investments.
Companies and the investors are spending more on the infrastructure of
this sector.
Various national programs are taken in like National Rural Employment
Guarantee, Urban Renewal Mission (JNNURM) and Indira Aawas
Yojana.
New projects and investments

Companies and the industries are coming up with certain new projects
which are due to the foreign investment done. The investment has
centered its focus on the cement and gypsum in between the work year of
2000 to 2011.

The following ate companies that will com up or are in the

process to come up

Kesoram Industries of the B.K Birla group is setting up a 2000 ton of a

packaging unit that would cost Rs 8 crore. This Andhra Pradesh
based packaging plant would serve for the cement manufacturing
unit at Sedam in Karnataka.
An investment of Rs450 Crore is proposed to be ventured to set up a
cement plant by the Birla Corporation of the M.P Birla group of a
capacity of 1ton.
The Madras Cement ltd is aiming at increasing the manufacturing capacity
of the Ariyalur Plant to 4.5mt by April 2011.
My home industries Ltd with its partner Irelan's Building Material major
are on the way to increase the cement production capacity to 15mt
pa by 2016.
Everest industry is planning g to set up a new manufacturing facility in
East India. More over the factory is also aiming at setting fiber
cement.
To meet the rising domestic demand a Swiss cement company Holcim is
planning to invest $1 billion for setting up a 2-3 Greenfield
manufacturing plant. This is proposed to be done in next 5 years.
Technological changes to be made to boost up the industry

The growing sectors of the producing and the manufacturing companies

are trying hard to equip themselves with the more and more of modern
and new technologies that enhance the growth of cement. Presently more
that 93 percentage of the total capacity of the cement production is based
on modern technology. The modes that are applied are all eco friendly
and the present rate of emission level is also reduced. Japanese
assistance in the green Aid Plant is been introduced by India where co-
generation of power utilizing waste heat is initiated. This has helped the
industries in conserving the fuel and energy that keeps the ecological
balance stable.

Some of the government initiative in the production and allocation of

cement usage in India
The government is initiating an increased usage of cement in highways
and road construction. The ministry of road transport and highway has
plans to invest US$ 354 billion in road infrastructure by 2012. Moreover
the infrastructure and the housing have also got acceleration. Promising
trend is seen in the investment and the usage of cement undertaken in
the construction of the roads and related projects. The investors are
planning to invest in this sector and this too aims at higher dispatch rate.