Presented By

Ankit 1ain
Anoop Singh Rajput
Adarsh Malu
Deepak Dhanothia
Kapil Verma
Micheal Arun
PGDIE40,NITIE
ProIile
Products
Global position
State wise consumption
Exports
Demand Drivers
Demand, Supply ,capacity utilization and price trends
Entry barriers
Government Control
Capacity clusters
Government Policies
Competition
Cartel Iormation
Interpretation oI Demand & Supply
Non price competition
GDP Contribution 1.3
Annual production - Increased Irom 29 MT (1982) to 219 MT (2009)
Employment opportunities - 1, 40,000 people.
No oI Companies 46
No oI Plants
W arge 148 (94 oI total production)
W Small 365
Installed capacity - 252 million tonne per annum
Per capita consumption - 156 kg (India)
Carbon dioxide, emission - 5 oI global emission
FDI - US$ 1708.69 million (April 2000 March 2010)
Demand Type - Cyclic in nature(peak in March and low in August)
Source.www.cma.in
rdinary Portland Cement (PC): - 70 oI the total consumption
Portland Pozolona Cement (PPC): - 18 oI the total Consumption
Portland Blast Furnace Slag Cement (PBFSC): - 10 oI total
consumption
White Cement: - 1 oI total consumption
Specialized Cement: - 1 oI total consumption
W il Well Cement:
W Rapid Hardening Portland Cement
W Water ProoI Cement
Source.www.cma.in
Position - 2
nd
largest Producer in the world
Contribution - 7 oI the world consumption
Competitive Strength Technology & production Cost
Exports - To over 30 countries
Source.www.cma.in
Source.www.cma.in
Exporting countries
W Nepal
W Sri anka
W South AIrica
W Maldives
W Some Middle east and South east Asian countries
Potential Strength Ior exports
W ocational advantage
W arge-scale limestone and coal deposits
W Adequate cement capacity
W World-class quality
W atest technology
Growth oI InIrastructure and real estate sector
W Malls, Multiplexes, Shopping complexes
The Government`s Iocus on inIrastructure spending
W Gram Sadak Yojana Highways
W Indira Aawas Yojana & Rajiv Aawas Yojana, rising - low-
cost housing
Rising income levels
Hovering real estate market
Announcement oI special economic zones
Source.www.icra.in
Administrative
The Mines and Minerals (Development and Regulation)
Act,1957
The Mines Act, 1952
Approval Irom Government oI India is required beIore
sanctioning leases Ior cement grade limestone
More power has been delegated to State Government
Cost oI set up
W Capital cost oI one ton oI cement Rs. 3500
W Capital cost oI 1 Million tonne capacity Rs. 3500 Million.
Taxes and Duty
It occupies around 30 oI sale Price
W Excise - Rs. 408 per tonne
W Royalty on imestone - Rs. 45-55 per tonne
W Royalty on ignite - Rs. 50 per tonne
W Royalty on Non Coking Coal - Rs. 65-165
Factors that primarily control the cost oI cement
W Coal
W Power tariIIs
W Railway
W Freight
W Royalty
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There are 8 clusters in India accounted Ior 81 oI consumption
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W Price and Distribution Controls (1940-1981)
Sluggish growth. The installed capacity reached only 27.9
MT by the year 1980-81.
W Partial Decontrol (1982-1988)
The increase in the installed capacity to 59MT in 1988-89
W Total Decontrol (1989)
In the next two years, the industry enjoyed a boom in
sales and proIits
W Booming demand Ior cement, both in India and abroad, has
attracted global majors to India
W In 2005-06, Iour oI the top-5 cement companies in the world
entered India through mergers, acquisitions
W Regional in nature
W Strong demand and better price realization
W Demand and supply expected to grow neck to neck
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W Consolidation leading to reduction oI players, and emergence
oI major players with an ability to inIluence the market process
W Cement industry is known to be prone to cartelisation
worldwide
W The MRTPC (onopolies and Restrictive Trade Practice
Commission)initiated a suo moto enquiry
W CCI (Competition commission oI India) to take close look
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W Branding and greater expenditure on advertising
W Innovative packaging
W strengthening oI their distribution networks as well as several
customer-Iocused initiatives
W Integrating vertically by moving into the ready-mix concrete
business in an attempt to retain their clients
W Regional players are moving out oI their regions
Brands Advertiser share(adv
expenditure)
Ambuja cement Ambuja cement 27
Ultratech cement Ultratech cement 17
Birla plus Grasim Industries 14
ACC The associated cement co. 10
J K akshmi J K akshmi 5
Shree ultra red oxide
cement
Shree cement 5
J K Wall Putty J K Group 4
Ramco Super Grade Madras Cement td 2
aIarge concerato aIarge India td 2
Dalmiya Vajram Dalmiya cement 2
W www.co.lo
W www.lcro.lo
W www.rrIloooco.co