Analysis on Cement Industry and Ultratech Cement
[pic]
TABLE OF CONTENTS
Page No 1. Introduction 3 2. Indian Cement Industry Analysis 4 3. Aditya Birla Group 9 4. Ultra Tech Cement 14 5. Conclusion 19 6. Bibliography 20 Figures 1. Cement Demand Drivers 5 2. Hindalco Net Sales 11 3. Birla Nuvo Consolidated Revenues 12 4. Birla Nuvo Revenue Mix 12 5. Ultra Tech Net Earnings 16 6. Ultra Tech Net Worth 16 7. Movement of Share Prices of Ultra Tech 17 Tables 1. Cement Dispatch Growth 5 2. Ultra Tech Sales Volume 14 3. Ultra Tech Sales Realisation 15 4. Financial Highlights of Ultra Tech 17 5. Ultra Tech and its Competitors 18
[pic]
INTRODUCTION
The Indian cement industry is on a roll. Driven by a booming housing sector, global demand and increased activity in infrastructure development such as state and national highways, the cement industry has outpaced itself, ramping up production capacity, attracting the top cement companies in the world, and sparking off a spate of mergers and acquisitions to spur growth. The recent boom in the housing and construction industry in India has worked wonders for cement manufacturing companies with capacity utilization crossing the 100 per cent mark for the first time in January 2007.
Globally, India is the second largest producer of cement. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscals’ total production of 147.8 mt. Of this, 9.3 million tone of cement was exported. The Indian cement industry comprises 130 large cement plants and 365 mini-cement plants, with installed capacities of 165 million tones per annum (tap). Large cement plants accounted for over 94 per cent of the total installed capacity.
The booming demand for cement, both in India and abroad, have attracted global majors to India. In 2005-06, four of the
TABLE OF CONTENTS
Page No 1. Introduction 3 2. Indian Cement Industry Analysis 4 3. Aditya Birla Group 9 4. Ultra Tech Cement 14 5. Conclusion 19 6. Bibliography 20 Figures 1. Cement Demand Drivers 5 2. Hindalco Net Sales 11 3. Birla Nuvo Consolidated Revenues 12 4. Birla Nuvo Revenue Mix 12 5. Ultra Tech Net Earnings 16 6. Ultra Tech Net Worth 16 7. Movement of Share Prices of Ultra Tech 17 Tables 1. Cement Dispatch Growth 5 2. Ultra Tech Sales Volume 14 3. Ultra Tech Sales Realisation 15 4. Financial Highlights of Ultra Tech 17 5. Ultra Tech and its Competitors 18
[pic]
INTRODUCTION
The Indian cement industry is on a roll. Driven by a booming housing sector, global demand and increased activity in infrastructure development such as state and national highways, the cement industry has outpaced itself, ramping up production capacity, attracting the top cement companies in the world, and sparking off a spate of mergers and acquisitions to spur growth. The recent boom in the housing and construction industry in India has worked wonders for cement manufacturing companies with capacity utilization crossing the 100 per cent mark for the first time in January 2007.
Globally, India is the second largest producer of cement. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscals’ total production of 147.8 mt. Of this, 9.3 million tone of cement was exported. The Indian cement industry comprises 130 large cement plants and 365 mini-cement plants, with installed capacities of 165 million tones per annum (tap). Large cement plants accounted for over 94 per cent of the total installed capacity.
The booming demand for cement, both in India and abroad, have attracted global majors to India. In 2005-06, four of the