Cement Industry Analysis
Industry Analysis of- Cement Sector
Prepared by: 1) Ritika Khare 2) Divya Nangia 3) Vidya Rajgopal 4) Pawan Thakare 5) Dhananjay Limaye 6) Mrugen Shah
1) Nature of the Industry
CEMENT
The word Cement has come from the Roman word ‘Opus Caementicium’. In general, the word cement means binder- a substance, which when gets set and hardens, binds itself independently with other substances. Joseph Aspdin, a British stonemason, invented cement way back in 1824.(Portland Cement Association 2010)
INTRODUCTION TO THE INDIAN CEMENT INDUSTRY
In 1914, the first licensed cement-manufacturing unit in India was set-up by the India Cement Company Ltd. With the boom in the economy-growth rate of India, the cement industry is seeing a great future. India has now become the second largest cement producer in the world after China, with a total capacity of 151.2 Million Tones, contributed by around 125 large and 300 mini cement plants. Further growth in the Indian cement industry is expected in the coming years. It is expected that by FY12, the cement production capacity will rise up to 262.61 Million Tones.
The cement industry in India is dominated by around 20 companies, some of the major Cement players in India are Company | Production | Installed Capacity | ACC | 17,902 | 18,640 | Gujarat Ambuja | 15,094 | 14,860 | Ultratech | 13,707 | 17,000 | Grasim | 14,649 | 14,115 | India Cements | 8,434 | 8,810 | JK Group | 6,174 | 6,680 | Jaypee Group | 6,316 | 6,531 | Century | 6,636 | 6,300 | Madras Cements | 4,550 | 5,470 | Birla Corp. | 5,150 | 5,113 |
(Mapsofindia.com 2010) (Tradechakra 2008)
Demand & Supply Analysis
The main demand drivers for the industry are as following, * REAL ESTATE: The boom in the cement industry in India came in 2003, when the real estate rates started rising. Over the past few years (FY03-07), cement demand has grown at a
Prepared by: 1) Ritika Khare 2) Divya Nangia 3) Vidya Rajgopal 4) Pawan Thakare 5) Dhananjay Limaye 6) Mrugen Shah
1) Nature of the Industry
CEMENT
The word Cement has come from the Roman word ‘Opus Caementicium’. In general, the word cement means binder- a substance, which when gets set and hardens, binds itself independently with other substances. Joseph Aspdin, a British stonemason, invented cement way back in 1824.(Portland Cement Association 2010)
INTRODUCTION TO THE INDIAN CEMENT INDUSTRY
In 1914, the first licensed cement-manufacturing unit in India was set-up by the India Cement Company Ltd. With the boom in the economy-growth rate of India, the cement industry is seeing a great future. India has now become the second largest cement producer in the world after China, with a total capacity of 151.2 Million Tones, contributed by around 125 large and 300 mini cement plants. Further growth in the Indian cement industry is expected in the coming years. It is expected that by FY12, the cement production capacity will rise up to 262.61 Million Tones.
The cement industry in India is dominated by around 20 companies, some of the major Cement players in India are Company | Production | Installed Capacity | ACC | 17,902 | 18,640 | Gujarat Ambuja | 15,094 | 14,860 | Ultratech | 13,707 | 17,000 | Grasim | 14,649 | 14,115 | India Cements | 8,434 | 8,810 | JK Group | 6,174 | 6,680 | Jaypee Group | 6,316 | 6,531 | Century | 6,636 | 6,300 | Madras Cements | 4,550 | 5,470 | Birla Corp. | 5,150 | 5,113 |
(Mapsofindia.com 2010) (Tradechakra 2008)
Demand & Supply Analysis
The main demand drivers for the industry are as following, * REAL ESTATE: The boom in the cement industry in India came in 2003, when the real estate rates started rising. Over the past few years (FY03-07), cement demand has grown at a