PRESENTATION ON CEMENT INDUSTRY

CONTENTS:-- History

 Growth

1. Manufacturing method 2. Factors affecting the growth in India

 Major players of industry in India

1. Market shares of big companies in India

 Challenges before the industry in India  Strategies for future in India

INTRODUCTION:--Cement is a material which possesses adhesive and cohesive properties and capable of binding materials like bricks, stones, building blocks etc. Definition:Cement is a crystalline compound of calcium silicates and other calcium compounds having hydraulic properties (Macfadyen, 2006). The fundamental chemical compounds to produce cement clinker are:1.Lime (CaO) 2. Silica (SiO2) 3. Alumina (Al2O3) 4. Iron Oxide (Fe2O3)

HISTORY:--(WORLD)
YEAR 16th century HAPPENINGS
Romans was the first to use pozzolan cement in making of Pantheon. John Smeaton was first to develop best composition of hydrualic cement. Joseph Aspdin was granted a patent (no. 5022) for Portland cement.

1760 1824

(INDIA)
YEAR
1904 1914 1924 1939 1947

HAPPENING
First cement factory was started in Chennai. Manufacture of Portland cement on large scale started by Indian Cement Co.Ltd. 10 cement factories in India with total production of 5.81 lakh tonnes PA. 17 Factories in India with total capacity of 26.15 lakh tonnes PA. After partition 18 factories remained in India of total capacity 21.15 lakh tonnes.

Govt. Policies:--1. Price Distribution & Control (1940-1981) 2. Partial Decontrol (1982-1988) 3. Total Decontrol (1989 onwards)
1961 1965 1970 1975 1985 1995 2005 2011

year

Cement produce in (Mt.)

8.32 10.59 13.95 16.21 43.42 75 115 237

CURRENT SCENERIO IN INDIA:--Indias position worldwide.

Avg. Quantity of comsumption----

In world-260kg

Avg. growth in last 5 years----

nearly 9%

Avg. demand growth in last 5 yrs----

From 5% to 16%

FACTORS RESPONSIBLE FOR THE GROWTH OF THE SECTOR:-- Technological

change-----

1. Dry process 2. Wet & semi dry process 3. Waste heat recovery

 Government Initiatives-----

1.Increased infrastructure spending. 2. increased budgetary allocation for (NHDP). 3. Appointing a coal regulator .

MANUFACTURING PROCESS:Three following methods are used in manufacturing of cement1.WET Process 2.SEMI-DRY Process 3.DRY Process
Raw material

Lime stone

Clay

Crushin g

Washin g

Proportioni ng

Grindin g

Dry method

Wet method

Dry powder

Slurry

Rotary kiln Clinker

Grindin g

Fine clinker Gypsum Portland

Packagin g

Shipmen t

MAN POWER IN CEMENT INDUSTRY:--Avg. total of man power-- 10000 Executive level 600 Middle level 900 Workers 8500 (Data taken from Ambuja cement co.)

MAJOR PLAYERS OF THE INDUSTRY IN INDIA:Company

1. Gracim Ulratech 2. ACC 3. India Cement 4. Lafarge Cement 5. GACL 6. Jaypee 7. JK cement 8. Holcim 9. Century cement 10. Birla cement

Capacity
31 mt 22.4 mt 9 mt 5.5 mt 18.5 mt 14.7 mt 3.65 mt 41 mt 7.8 mt 3.4 mt

1.Grasim-Ultratech cameo:--(capacity- 31 million tonnes)


Chairman :Kumara Mangalam Birla

product portfolio: white cement grey cement chemicals textiles.

With the acquisition of Ultratech, L&Ts cement divison in early 2004, Grasim has now become the worlds seventh largest cement producer. It has plants in MP, CG, Punjab, Rajasthan, TN and Gujarat.

2. Associated Cement Company Ltd. (ACC)

(capacity- 22.4 million tonnes) Largest producer of Cement in india Chairman: N.S.Sekhsaria

Product portfolio-- Portland cement Composite cement Special cement

It has twelve manufacturing plants located throughout the country with exports to SAARC nations

3.India Cements:--- (capacity- 9 million tonnes)

Chairman: N.Srinivasan

Product portfolio-- ordinary Portland cement blended cement

India cement is the largest cement producer in southern India with a total capacity of 8.81 million tones Plants in Andhra Pradesh and Tamilnadu

4. Lafarge India:--- (capaciy- 5.5 million tonnes)

CEO &MD: Mr Uday Khanna

Product portfolio Portland slag cement ordinary Portland cement Portland pozzolana cement

The Indian cement plants are located in CG and Rajasthan. It exports clinker and cement to Bangladesh and Nepal.

Lafarge cement has become the largest cement selling firm in Indian markets of West-Bengal, Bihar. JharKhand and CG.

5. Gujarat Ambuja Cement Ltd. (GACL):--(capacity- 18.5 million tonnes) Managing Director:Onne van der Weijde

GACL was set up in 1986 in Chandrapur, Maharashtra. The group has clinker manufacturing facilities at Himachal Pradesh, Gujarat, Maharashtra,CG, Punjab and Rajasthan. Gujarat Ambuja is Indias largest cement exporter and one of the cost efficient firms.

most

6. Jaiprakash Associates Ltd.:--(capacity-14.70 million tonnes) Chairman :Jai Parkash Gaur

Jaiprakash industries, now known as Jaiprakash Associates Ltd (JAL) is a part of the Jaypee group Plants located in Rewa & Bela (MP) and Sadav Khurd (UP). and the commissioning of a new grinding unit at Tanda (UP) Company manufactures a wide range of world class cement of OPC grades 33, 4, 53, IRST-40 and special blends of pozzolana cement.

7. JK Synthetics:--- (capacity- 3.65 million tonnes) Chairman:Dr Gaur hari Singhania

JK synthetics, a Singhania Group Company, started manufacturing nylon at Kota in 1962. JK Synthetics limited is restructuring its business divisons into two separate entities- JK Cements and JK Synthetics.

Cement plant at Nimbahera in Rajasthan, and manufacturing white cement.

8. Holcim:---

(capacity- 41 million tonnes)

Chairman:Dr Rolf Soiron

Holcim, earlier known as Holder bank, It has a strong market presence in over 70 countries and is a market leader in South America and in a number of European and overseas market. Holcim entered India by means of a long-term strategic alliance with Gujarat Ambuja Cement Ltd (GACL). It is a keyplayer in aggregates, concrete and construction related services

9.Century Textiles and industries Ltd.(CTIL):--- (capacity- 7.8

million tonnes)

Chairman: Mr B.k Birla

product portfolio-- textiles, cement pulp &paper, property Cement is the largest divison of CTIL and contributes to over 40% of the companys revenues. CTIL has four plants that manufacture cement, one in CG, two in MP and one in Mahahrashtra.

10.Birla Corporation Ltd.---(capacity 3.4mt)

Flagship company of M.p Birla Group

Chairman: Mr Harsh V.lodha--

Product portfolio: Casting parts jute goods cement Company has two plants in Madhya pradesh and Rajasthana and one each in westbengal and Tamilnadu Large quantity of cement is exported to Nepal and Bangladesh.

Market Share of Big Companies---

So, ACC being the sector leader contributing a major part of supplies.

New Investments & Mergers and Acquisitions --Shree Cements will invest almost US$ 244.12 million this year, of which half will be invested towards setting up two grinding units at Rajasthan and Uttarakhand to augment its capacity. The other half will be towards the two power plants in Bangur. ACC Ltd will spend US$ 575 million on capacity expansion in 2012 and 2013. ACC is expanding capacity by a third to 39 MT by 2011 .
. . Holcim strengthened its position in India by increasing its holding in Ambuja Cement from 22 per cent to 56 per cent .

Vicat SA, a French cement maker acquired a 6.67 per cent stake in Hyderabad-based Sagar Cement for US$ 14.35 million

CURRENT CHALLENEGS BEFORE CEMENT INDUSTRY:--1. Raw Material Cost---42% jump

Cement Industry Statastics

Q4, FY 08 Raw material cost 45 percent Cement Prices Limestone Prices ire Clay Prices 8.5 percent 13.9 percent 3 percent

2. Absence of specific measures for interest rate reduction

3. Excise structure 4. Exemption limit of income tax on housing loans 5. Service tax on the railway freight

6. Monsoon season
7. Land acquisition, equipment and machinery receipts, labor shortages. 8. Export ban, influx of imported cement, extreme liquidity crunch and slowing demand. 9. Cement is a bulky commodity and cannot be easily transported

STRATEGIES
1. The establishment of mini plants. 2. Govt. has launched schemes of allowing the cement industry or factories to purchase own wagons. 3. Cement industry has been setting up there own captive Diesel Generating Sets. 4. Modernization / expansion plans by investments of the order of 2,800 crores. 5. Conversion of manufacturing process

6. energy conservation. 7. adoption of latest technologies such as pre-heaters& pre calcinations. 8. installation of pollution control devices.

9. setting up of captive power units in order to minimize uncertainty on account of power cuts.

SOME MEGA PROJECTS IN FAVOUR OF CEMENT INDUSTRY:India is a developing country so here development is a long lasting process, some mega projects which is running by the govt. and private sector are 1. New Delhi Indira Gandhi International Airport, Terminal-3 (Cost: Rs 8,990 Crore) 2. New Delhi Airport Express (Cost: 2,885 crore ) 3. Hyderabad Growth Corridor (Outer Ring Road) (Cost: Rs 6900 crore) 4. P.V. Narasimha Rao Elevated Expressway (Costs: 600 cores )

Submitted to : Mr Pankaj Maini

Presented by: Rohit dhall Rohit mohindaro Raj Kumar