34 – Harish Pai | 40 – Atul Patel | 43 – Mayank Paua | 49 – Vivek Savargankar

CEMENT INDUSTRIES

Batch : MFM ( 2010 –

2013)
Subject : Financial
Management
 CONTENT
CONTENTS

1
INTRODUCTION TO CEMENT INDUSTRIES

2
CEMENT INDUSTRIES SECTOR STASTICS

3
SNAP SHOT - ACC

7
SNAP SHOT - AMBUJA

10
SNAP SHOT – SHREE CEMENTS

13
SNAP SHOT – J K CEMENTS

14
MICHEAL PORTER’S MODEL

15
IMPACT OF BUDGET ON CEMENT INDUSTRIES.

17
COMPARATIVE ANALYSIS

18
REFERENCES
 PROCESS
INTRODUCTION …. MANUFACTURING
CEMENT TYPES & MAIN INGREDIENTS

CEMENT MANUFACTURING PROCESS

 CEMENT INDUSTRIES
CEMENT INDUSTRIES >> OVER THE YEARS.

Description 1982 1989 2008 2009

Installed 29 MTPA 56 MTPA 207 MTPA 252 MTPA
Capacity
Production 21 MTPA 42 MTPA 177 MTPA 195 MTPA
 Indian cement Industry with total capacity of
240 million tones (2010) is the second largest
after China.

 Cement industry is dominated by 20

companies who account for over 70% of the
market. Individually no company accounts for over
12% of the market.

 The major players like Ultratech and ACC have

been quiet successful in narrowing the gap
between demand and supply.

 Similarly northern and southern region

consume around 20%-30% cement while the
central and western region are consuming only
18%-16%.

 Demand has picked up in East and West,

resulting in lower inventory levels and price hikes
of ~INR 10/bag in the first week of January 2011
 ACC >> SNAPSHOT
>> SNAPSHOT

India's foremost manufacturer of

cement

Mr N. S. Sekhsaria
Chairman 

• Established 1936, as a result of

merger of 10 Companies.
• Only Company with nationwide
presence –capacities in all five
regions.
• Production Capacity 22.63 MTPA
(2009)
• It has a workforce of about 9,000
persons and a countrywide
distribution network of over 9,000
dealers.
• Net Profit of INR 1606 Cr.
• 15 Plants Across India.
 ACC >> SNAPSHOT
FINANCIAL PERFORMANCE OF ACC
 ACC >> SNAPSHOT
MDA FOR ACC

2009 & 2008

 Total consolidated income for the year 2009 was Rs. 8,725 crore, an
increase of 9% as compared to Rs. 7,974 crore in 2008.
 The expansion project of the Bargarh Plant was substantially completed
during the year 1.2MT and Expansion at Wadi completed 3.2MT.
 Investment in building Wind Power projects : 2.5MW, Gross Generation of
Power by CPP up from 1,517 Million KwH to 1733 Million KwH. Increase in Share
of Power from CPP in total Power Consumption from 64% to 70%
 100% equity stake in National Limestone Company Private Limited (NLCPL)
Power :
 In 2009, gross generation of power by our
CPPs was 1733 million kwh which was 14%
higher than the gross generation of 1517
million kwh in 2008.
 AMBUJA CEMENT >> SNAPSHOT
>> SNAPSHOT

•Ambuja Cements is a Joint Venture between

the public sector Gujarat Industrial Investment
Corporation (GIIC) and Narottam Sekhsaria &
Associates. The company was incorporated in
the year 1981 as Ambuja Cements Pvt Ltd and it
was rehabilitated into a public limited company
on 19th March 1983 as Gujarat Ambuja
Cements Ltd.

•The Company has five integrated cement

manufacturing plants and eight cement grinding
units across the country. It also has 3 Bulk
Cement Terminals.

•The company name was changed from Gujarat

Ambuja Cements Limited to Ambuja Cements
Limited on April, 2007, the word Gujarat was
dropped to reflect the true geographical
presence of the company.
 AMBUJA CEMENT >> SNAPSHOT
FINANCIAL PERFORMANCE OF AMBUJA CEMENT.
 AMBUJA CEMENT >> SNAPSHOT
MANAGEMENT DISCUSSION & ANALYSIS (AMBUJA CEMENTS)

2009

 During 2009 a new bulk cement terminal started operation at Kochi, providing access
to new markets in the South, and two new captive power units, each with 15 MW
capacity, were commissioned at Bhatapara (Chhattisgarh) and Maratha (Maharashtra).

The Company has paid an interim dividend of 60% (Rs. 1.20 per share) during the
year.

The Company has built a large network of over 6,000 dealers and 20,000 retailers
across 18 states in India.
 SHREE CEMENT >> SNAPSHOT
>> SNAPSHOT

Shree Cement Ltd is one of India`s premier

cement makers and the largest in North India.

They have three brands under their portfolio,

namely Shree Ultra Jung Rodhak Cement,
Bangur Cement and Rockstrong Cement.

Their manufacturing units are located at

Beawar, and Ras in Rajasthan.

They are also having the grinding units in

Khushkhera in Rajasthan.

The company is headquartered in Kolkata,

India. Shree Cement Ltd was incorporated in
the year 1979. The company was promoted by
Calcutta-based industrialists P D Bangur and B
G Bangur.

It has more than quadrupled its capacity in the

last 5 years to reach present cement capacity of
12 million tons p.a.
 SHREE CEMENT >> SNAPSHOT
FINANCIAL PERFORMANCE OF SHREE CEMENTS
 SHREE CEMENT >> SNAPSHOT
MDA FOR SHREE CEMENTS

2009 & 2010

 Company implemented Performance Management System (PMS)
software to optimize its power consumption.

 R&D cell made a breakthrough by undertaking a unique initiative of producing

synthetic gypsum which will help reduce usage of natural gypsum which is a limited
natural resource. A patent has been applied for this unique achievement

 Implemented the Waste Heat Recovery Project. The project serves the dual purpose
of reducing the emission of waste gases into the atmosphere as well as conserves the
natural resources.

 Installed air cooled condensers at its Beawar Power plants to

conserve water consumption..
 J K CEMENT >> SNAPSHOT
>> SNAPSHOT

LEADING CEMENT PRODUCER WITH

DOMINANT PRESENCE IN NORTH
INDIA

 Cement operations since 1975

 Amongst top ten Grey Cement
Producer
 Second Largest Producer of White
Cement
 Capacity of 7.5 MTPA, across 4
cement plants
 105 Mw installed power capacity
 Net Profit 224.55 Crores 2009-10
 4 Cement Plants
 2000 employees
 Mudhol Plant Commissioned
 J K CEMENT >> SNAPSHOT
FINANCIAL PERFORMANCE OF J K CEMENT
 J K CEMENT >> SNAPSHOT
MDA FOR J K CEMENT

MDA 2008-2010

 Grey cement capacity has grown from 3.55 MT to 7.5 MT in just 5 years
 Increase in installed power capacity to 105 Mw, 7 times increase in 5 years
 Gross Sales in 2009-2010 Rs. 2248 Crores
 The Greenfield Grey Cement Plant at Karnataka with installed capacity of 3 MTPA
was commissioned in September 2009 and commercial dispatches started from
October 2009.
 50 M.W Coal Based Captive power plant has also been commissioned at
Karnataka plant.
 Grey cement production increased to 4.28 MT from 3.79 MT
 Dividend Payout of Rs. 6 per share – highest ever so far.
 BUDGET IMPACT
BUDGET IMPACT (2011-12)

 The basic customs duty on two critical raw materials for this industry viz.
petcoke and gypsum has been reduced to 2.5% from 5%.

Impact
This would result in lower input cost and pressure on operating profit margin
could marginally ease.

 The FII limit for investment in corporate bonds , with residual maturity of
over five years issued by companies in infrastructure sector, is being raised
by an additional limit of US Dollar 20 billion taking the limit to US Dollar 25
billion.

 For Infrastructure development in 2011-12 INR 2,14,000 crore is being

made for this sector, which is 23.3 per cent higher than current year.

 Capital goods imported for the expansion of existing mega or ultra mega
Power projects enjoy a concessional basic customs duty of 2.5 per cent and
full exemption from CVD.
MICHAEL PORTER’ S FIVE FORCE MODEL

PORTER’S FIVE FORCE MODEL

SUPPLIER POWER
BARGAINING POWER –
HIGH
MONOPOLISTIC CONTROL
OF EXTERNAL
COST ELEMENTS ( COAL,
POWER,
TRANSPORTATION
AND TAXES) THREAT OF SUBSTITUTES –
ENTRY BARRIER – •
LOW
LOW
HIGH CAPITAL
• ONLY BITUMEN IN ROADS AND
INVESTIMENT, ENGINEERING PLASTICS IN
BROAD BUILDING, OTHERWISE NO
SUBSTITUTE
DISTRIBUTION
NETWORK,
RIVAL
ECONOMIES OF RY
SCALE, SUPPLY >
DEGREE OF RIVALRY
DEMAND BARGAINING POWER OF
COMPETITION – HIGH
DETER NEW CONSUMER – LOW
ENTRANTS
LARGE NO OF PLAYERS
RISING SHARE OF RETAIL INTERMITTENT OVER
PURCHASE, CAPACITY
DECLINING SHARE OF MARGINAL PRODUCT
BULK PURCHASE BY DIFFERENTIATION
GOVT, HAS TAKEN HIGH EXIT BARRIER IN FORM
AWAY BPC. OF SIGNIFICANT CAPITAL
INVESTMENT
 COMPARATIVE STATISTICS
COMPARATIVE STATISTICS
PLANTS IN INDIA.

COMPARATIVE STATISTICS
ACC
J K Cement
Shree Cement
Ambuja
References :

Websites:

-www.acclimited.com
-www.shreecement.in
-www.jkcement.com
-www.ambujacement.com
-www.moneycontrol.com
-www.nseindia.com
-www.indiabudget.nic.in
-www.edielwiess.in

THANK YOU.