Project on Managerial Economics

INDIAN CEMENT INDUSTRY

 
 
 
 

 
 
 
INDIAN CEMENT INDUSTRY 
 
Group‐C6 
 
Members:‐ 
 

Name                   Phone Nos.          E MAIL ID 

Akansha Mishra  9899713450 akansha.mishra.pgdm10@igsm.in 

Ankita Jain  9810232212 ankita.jain.pgdm10@igsm.in 

Ashish Sharma  9210302016 ashish.sharma.pgdm10@igsm.in 

Indranil Bhowmick  9958252785 indranil.bhowmick.pgdm10@igsm.in 

Jyoti Jain  9899619114 jyoti.jain.pgdm10@igsm.in 

Kumari Sweta   9891766934 kumari.sweta.pgdm10@igsm.in 

Smriti Chauhan  9350539385 smiriti.chauhan.pgdm10@igsm.in 

   

CONTENTS 
 

1. ACKNOWLEDGEMENT 

2. EXECUTIVE SUMMARY 

3. LITERATURE REVIEW 

4. INTRODUCTION 

5. OBJECTIVE 

5. METHODOLOGY 

6. ANALYSIS 

7. CONCLUSION 

8. BIBLIOGRAPHY 

 
 ACKNOWLEDGEMENT
We take this opportunity to express our profound sense of gratitude
and respect to all those who helped us throughout this endeavor.

We owe our regards to Mrs. MEGHNAA SHARMA for his

cooperation and valuable support and for giving us the opportunity to
undertake this project and providing the necessary infrastructure.

We would like to express our heartfelt thanks to Minto and

Bisender for helping us in various printouts and photocopies from
time to time at odd hours.

Last but not the least; we owe our overwhelming gratitude to our
families and friends who gave us constant support and motivation
to continue with this endeavor.

 
 Executive Summary
The cement industry is one of the main beneficiaries of the infrastructure boom.
With robust demand and adequate supply, the industry has bright future. The
Indian Cement Industry with total capacity 151.2 million tones 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 L&T and ACC have been quiet successful in
narrowing the gap between demand and supply.

Private housing sector is the major consumer of cement (65%) followed by the
government infrastructure sector. Similarly northern and southern region consume
around 20%-30% cement while the central and western region are consuming only
18%-16%.

The company continues to emphasize on cost cutting through enhanced

productivity, reduction in energy costs and logistics expenses. The cement sector
is expected to witness growth in line with the economic growth because of the
strong co-relation with GDP. Future drivers of cement demand growth in India
would be the road and housing projects. As per the Working Group report on
Cement Industry for the formulation of the 11th Plan, the cement demand is likely
to grow at 11.5 per cent per annum during the 11th Plan and cement production
and capacity by the end of the 11th Plan are estimated to be 269 million tones and
298 million tones, respectively, with capacity utilization of 90 per cent.

In brief we have covered Cement market including market size, composition, and
market growth, latest Trends & Opportunities, different policies adopted by the
government for the Indian cement industry, cement production and capacity
utilization as well as the current scenario of demand and supply.
 CEMENT INDUSTRY
Literature review 
India is the 2nd largest cement producer in world after china .Right from
laying concrete bricks of economy to waving fly over’s cement industry has
shown and shows a great future. The overall outlook for the industry shows
significant growth on the back of robust demand from housing construction,
Phase-II of NHDP (National Highway Development Project) and other
infrastructure development projects. Domestic demand for cement has been
increasing at a fast pace in India. Cement consumption in India is forecasted to
grow by over 22% by 2009-10 from 2007-08.Among the states, Maharashtra has
the highest share in consumption at 12.18%,followed by Uttar Pradesh, In
production terms, Andhra Pradesh is leading with 14.72% of total production
followed by Rajasthan. Cement production grew at the rate of 9.1 per cent during
2006-07 over the previous fiscal's total production of 147.8 mt(million tons). Due
to rising demand of cement the sales volume of cement companies are also
increasing & companies reporting higher production, higher sales and higher
profits. The net profit growth rate of cement firms was 85%.
Cement industry has contributed around 8% to the economic development of
India. Outsiders (foreign players) eyeing India as a major market to invest in the
form of either merger or FDI (Foreign Direct Investment). Cement industry has a
long way to go as Indian economy is poised to grow because of being on verge of
development.

Despite the growth of Indian cement industry India lags behind the per
capita production. Supply for cement is expected to remain tight which, in turn,
will push up prices of cement by more than 50%. The most important factor for
better prices is consolidation of the industry. It has just begun and we will see
more consolidation in the coming years. Other budget measures such as cut in
import duty from 12.5 per cent to nil etc. are all intended to cut costs and boost
availability of cement.

Sadly the adverse effects of global slowdown have not speared this
industry too. Demand is sluggish, the government is keeping an eagle eye on
prizes, domestic coal and pet coke, prizes have increased sharply and utilizations
rates are down. The numbers coming out are a reflection of grim times. ACC the
country’s largest cement company that’s controlled by Swiss giant HOLCIM,
registered 2% fall in august sales. The biggest fall since Feb. 2007. Production fell
by 5%.

To stand against the problematic situation, government as well as cement

industry has taken some steps. Companies are focusing on cost of transportation.

One of the strategy is to decrease dependence on road & opt for sea
logistics as that can cut transportation cost by 30- 50 %. Some plants are adopting
futuristic plan such as setting up captive power plant, moving closer to the
customers by creating clicker, crushing, and capacity in key markets, to be more
customer centric to generate better revenue. India should push for stricter
regulations of market place as to control the prices of big companies and prevent
them from forming cartels and exchanging information. To fight with the high
inflation, government wants to import more cement from Pakistan .However
cement prizes are not very much high as other items but still they are increasing.
And the reason of high prize is surging cost of raw material and transportation
cost. Apart from this government also discussed with cement industry not to have
increase in prizes and keep consumer interest in mind.

Now the question arise in front of the government is whether the demand
by the government is possible to increase through expenditure on infrastructure or
not according to the current state of economy when so many crises are going on or
how the government allocation of US$ 3.23 billion for the National Highway
Development, Project will keep the demand for cement alive?

And to what extent the prizes of cement should be increase so that consumer can’t
affect.
 OBJECTIVES

ƒ To study Cement market including market size and composition,

market growth.

ƒ To analyze latest Trends & Opportunities.

ƒ To Study policies of government related to Cement industry.

ƒ To analyze the Cement production and capacity utilization.

ƒ To trace out current scenario of demand & supply.

 
 
 

METHODOLOGY
The research is based on the information collected from various types of secondary
resources. The method adopted for these findings is secondary method as there was
limitation in collecting primary data about the cement industry. The main aim is to
focus on demand , supply , major players and trends of the cement industry.

The following sources have been taken for the preparation of this research:

• Internet reports
• Books
• Journals
 

 
  

INTRODUCTION

T he cement industry is experiencing a boom on account of the overall growth of the

Indian economy. The demand for cement, being a derived demand, depends primarily on
the industrial activity, real estate business, construction activity, and investment in the
infrastructure sector. India is experiencing growth on all these fronts and hence the cement
market is flourishing like never before. Indian cement industry is globally competitive because
the industry has witnessed healthy trends such as cost control and continuous technology up
gradation. Global rating agency, Fitch Ratings, has commented that cement demand in India is
expected to grow at 10% annually in the medium term buoyed by housing, infrastructure and
corporate capital expenditures.

The constraints faced by the industry are reviewed in the Infrastructure Coordination
Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary
(Coordination). Its performance is also reviewed by the Cabinet Committee on Infrastructure.
Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher
demand of cement in the country. In the same direction, participation of larger companies in the
sector has increased.

After having gone through a period of over-supply and the phase of massive capacity
additions (latter half of the previous decade), the industry is currently in a consolidation phase,
with capacity additions coming up to cater to the increasing demand. Demand has been driven
by a booming housing sector and increased activity in infrastructure development such as state
and national highways. While the demand is growing at a robust pace of 8% to 10% annually,
the paucity of major capacity additions is putting upward pressure on the cement prices. The top
four companies account for almost 40% of the total domestic capacity, while the remaining is
distributed among the large and mini plants in the industry.

CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets
global standards. The cement industry comprises 130 large cement plants and more than 300
mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons
which was 166.73 million tons at the end of the year 2006-07. Cement production during April
to March 2007-08 was 168.31 million tons as compared to 155.66 million tons during the same
period for the year 2006-07.Despatches were 167.67 million tons during April to March 2007-
08 whereas 155.26 during the same period. During April-March 2007-08, cement export was
3.65 million tons as compared to 5.89 during the same period.
MAJOR PLAYERS
Company Installed Capacity Production
ACC 18,640 17,902
Gujarat Ambuja 14,860 15,094
Ultratech 17,000 13,707
Grasim 14,115 14,649
India Cements 8,810 8,434
JK Group 6,680 6,174
Jaypee Group 6,531 6,316
Century Textiles 6,300 6,636
Madras Cements 5,470 4,550
Birla Corp. 5,113 5,150
Lafarge 5,000 4,573
 
With an installed capacity of around 157 million tons per annum (mtpa) at end-March 2006, large
cement plants accounted for 93% of the total installed capacity in India. The installed capacity is
distributed over across approximately 129 large cement plants owned by around 54 companies.
The structure of the industry is fragmented, although, the concentration at the top is increasing.
The fragmented structure is a result of the low entry barriers in the post decontrol period and the
ready availability of technology. However, cement plants are capital intensive and require a
capital investment of over Rs. 3,500 per tonne of cement, which translates into an investment of
Rs. 3,500 million for a 1 mtpa plant.

PRODUCTION

The official data released by the Cement Manufacturers Association that showed that the
monthly production in January-June this year is higher than the previous year.

PRODUCTION FIGURES
2006 2007
January 13.07 14.05
February 12.26 13.00
March 14.15 14.95
April 13.23 13.97
May 12.99 14.26
June 12.91 13.66*
Figures in million tonne
* Provisional figures
Source: Cement Manufacturers’ Association
“Production has been going up for the last two years. Measures have been taken to enhance
production further. The industry will add 80-100 million tonne in the next three or four years.”

In 2004-05, the industry produced 127.57 million tonne, rising to 155.31 million tonne in 2006-
07 — up 21.74 per cent. In the current financial year, production is expected to cross 165
million tonnes, he added.

The chief finance officer of a leading cement company said a price hike took place last year, but
not this year. “Why single out the cement industry? Other sectors, such as steel, have also hiked
prices,” he said, adding that steel companies raised prices by Rs 500-1,000 a ton this month.

The managing director of a multinational cement company said the taxes levied on the cement
industry are one of the highest in the country. “We contribute nearly 67 per cent of our income,
including royalty payment for limestone, to the exchequer. Instead of giving relaxation on the
tax front, the industry is being pressured to go in for price cuts,” he added.

PROCESS TECHNOLOGY

While adding fresh capacities, the cement manufacturers are very conscious of the technology
used. In cement production, raw materials preparation involves primary and secondary crushing
of the quarried material, drying the material (for use in the dry process) or undertaking a further
raw grinding through either wet or dry processes, and blending the materials. Clinker
production is the most energy-intensive step, accounting for about 80% of the energy used in
cement Production. Produced by burning a mixture of materials, mainly limestone, silicon
oxides, aluminum, and iron oxides, clinker is made by one of two production processes: wet or
dry; these terms refer to the grinding
processes although other configurations and mixed forms (semi-wet, semi-dry) exist for both
types. In the dry process, the raw materials are ground, mixed, and fed into the kiln in their dry
state. In the wet process, the crushed and proportioned materials are ground with water, mixed,
and fed into the kiln in the form of slurry.

The choice among different processes is dictated by the characteristics and availability
of raw materials. The dry process is the more modern and energy-efficient configuration. In
general, the dry process is much more energy efficient than the wet process, and the semi-wet
somewhat more energy efficient than the semi-dry process. The semi-dry process has never
played an important role in Indian cement production and accounts for less than 0.2% of total
production. Different types of cement that are produced in India are:
 

• Ordinary Portland Cement (OPC): OPC, popularly known as grey cement

• Portland Pozzolana Cement (PPC)

• White Cement: White cement is basically OPC

• Portland Blast Furnace Slag Cement (PBFSC)

• Specialized Cement

• Rapid Hardening Portland cement

• Water Proof Cement

 

DEMAND & SUPPLY

The demand drivers for the cement sector continue to be housing, infrastructure and
commercial construction, etc. We expect the proportion of infrastructure in total demand to
improve further in future, as the thrust on infrastructure development is on the rise. During
April-November 2007, cement demand grew by 10 per cent year-on-year (y-o-y) propelled
by the growth witnessed in end user segments such as housing, infrastructure etc. CRISIL
Research expects demand to remain strong and grow by over 12 per cent in the next 2 years.

Cement demand is expected to outstrip supply for the next year and a half as no major
capacities are coming on-stream, thus providing enough flexibility to cement manufacturers to
further hike the prices.

Today, cement from Andhra is going all over India, including Assam, Meghalaya,
Jharkhand, Orissa, West Bengal, Chattisgarh, Gujarat and Maharastra. More cement is likely to
flow into Tamil Nadu from the state in view of cut in sales tax. Any further increase in demand
in the South India will benefit the cement industry here. Cement movement from Gujarat to
Mumbai is also coming down due to exports while cement movement from Orissa into Andhra
has stopped and, in fact, cement is flowing into Orissa as well.

Earlier in 2006-07, the housing sector alone consumed 65 per cent of the total domestic
consumption. With the launch of several infrastructure projects, the housing consumption may
come down to 55 per cent as the infrastructure and other sectors are expected to move up to 45
per cent from the present 35 per cent. Still, the main sector of consumption continues to be
housing, including commercial space, occupying more than 60 per cent. The current demand in
the state for 2005-06 is expected to cross 15 million tons (11.5 million tons). We expect the
demand here to go past the 17.5-million mark in 2006-07 in view of irrigation and infrastructure
projects being taken up in the state. Weaker sections’ housing, construction of public toilets,
schools in rural areas apart from several private and public infrastructure projects will also give
tremendous boost to the cement consumption in the state. Most importantly, irrigation projects,
worth nearly Rs 1 lakh crore, will trigger unprecedented demand for the next 5-7 years.

Cement consumptions are as follows:

 
  ZONAL CONSUMPTIONS 
  ZONE  Year 2006‐07  Year 2007‐08 
East  17%  17% 
  South  26%  30% 
  North  21%  20% 
west  20%  18% 
  central  17%  16% 

DEMAND DRIVERS
Indian cement demand skewed towards housing

The demand from the housing sector is ~53% of the total Indian cement demand.

1 

There are fears of a slowdown in the demand from the housing sector due to a drop in
real estate prices in the country. The worry is that builders may postpone construction of new
buildings if the property prices were to correct.
Infrastructure to give demand a big boost
Our analysis shows that Infrastructure should be the biggest growth driver for cement
demand in the country. If we were to look only at order books of the top eight construction and
manufacturing equipment companies in India, we find that their combined order book has
virtually doubled over the last two years from INR1,000bn (USD25bn) to INR1,950bn
(USD48.75bn) for completion over the next 24-30 months.

2 

Assuming 10% cement intensity in structures, the order book of these 8 engineering
companies would incrementally add 4-6m tons of demand annually.

Infrastructure spending to propel the growth in medium term

As seen from Figure 3, India is likely to spend ~USD211bn on infrastructure over the
next five years. These investments are much lower than the government’s estimate of
USD320bn of spends over the same period. Our analysis, based on the bottom-up approach,
suggests that the projects are likely to kick off on time. Therefore, the infrastructure investments
could drive an incremental cement demand of 46m tonnes over FY07-12E.
 3 

Pan-India cement demand to grow at 10% CAGR over FY07-10

Based on our sectoral outlook, we have marginally revised our demand growth assumptions in
India to 10% from 9%. The key reasons are:
(1) Stronger-than-expected order book of Indian construction and engineering companies
(2) No slowdown seen in construction of houses at important consumption centers

4 

COST
Over the past five years, cost of cement production has grown at a CAGR of 8.4%. Also,
the producers have been able to pass on the hike in cost to consumers on the back of increased
demand. Average realizations have increased from Rs. 1,880 per tonne in FY 03 to Rs. 3,133
per tons in FY 07, at a CAGR of 13.6%, which has been reflected in higher profit margins of the
industry.
 To reduce the cost of production, the industry has focused on captive power generation.
Proportion of cement production through captive power route has increased over the years.
Also, cement movement by rail has increased over the years. Freight and energy costs are also
increasing; however, in the current market scenario, manufacturers have the flexibility to pass
on the increase in costs to end-consumers. Let us have a look at the cost factors affecting the
cement industry

Capacity Utilization: Since the industry operates on fixed cost, higher the capacity sold,
the wider the cost distributed on the same base. But one should also keep in mind, that there
have been instances wherein despite a healthy capacity utilization, margins have fallen due to
lower realizations.

Power: The cement industry is energy intensive in nature and thus power costs form the most
critical cost component in cement manufacturing (about 30% to total expenses). Most of the
companies resort to captive power plants in order to reduce power costs, as this source is
cheaper and results in uninterrupted supply of power. Therefore, higher the captive power
consumption of the company, the better it is for the company.

Freight: Since cement is a bulk commodity, transporting is a costly affair (over 15%).
Companies, which have plants located closer to the markets as well as to the source of raw
materials have an advantage over their peers, as this leads to lower freight costs. Also, plants
located in coastal belts find it much cheaper to transport cement by the sea route in order to
cater to the coastal markets such as Mumbai and the states of Gujarat and Tamil Nadu.

On account of sufficient reserves of raw materials such as limestone and gypsum, the raw
material costs are generally lower than freight and power costs in the cement industry. Excise
duties imposed by the government and labor wages are among the other important cost
components involved in the manufacturing of cement.

Operating margins: The company should have a consistent record of outperforming its
peers on the operational performance front i.e. it should have higher operating margins than its
competitors in the industry. Factors such as captive power plants, effective capacity utilisation
results in higher operating margins and therefore these factors should be looked into.

Since cement is a regional play on account of its high freight costs, the company should not
have all its plants concentrated in one region. It should have a geographical spread so that
adverse market conditions in one region can be mitigated by high growth in the other region
PRICING FACTORS

Prices across the country have risen substantially buoyed by the robust demand for
cement. Prices have risen by more than 30 per cent during April-January 2007 on an all India
basis, with the northern and eastern regions witnessing the highest and lowest growth of 32 per
cent and 16 per cent, respectively.

One of the key factors that seem to have a major say on stock price movements of
cement companies are cement prices! Given the volatility and seasonality involved in the same,
should one place such high weightage on cement prices to ascertain investment decision in
cement stocks.

Since cement is essentially a commodity, brand premium is almost non-existent

in the industry. In terms of value-addition, this sector ranks below even steel and aluminium. It
is a highly capital-intensive industry. The Indian cement industry has to be viewed on a regional
basis viz. northern, western, southern and eastern. Since demand is unfavorable in certain
regions, cement companies that focus on these regions are affected if there is a decline in prices.
The Indian cement industry is also highly fragmented with the top six accounting for about 60%
of industry capacity. The rest 40% is distributed among 40 small players. The cement industry
in India has emerged as the second largest in the world, boasting of a total capacity of around
144 m tons (including mini plants). However, on account of low per capita consumption of
cement in the country (110 kgs/year as compared to world average of 260 kgs) there is still a
huge potential for growth of the industry. a retail investor has to keep a tab on demand growth
and capacity expansion plans for players.

The level of fragmentation and competition also play an important role in determining
the prices since the larger the number of players, the more difficult it would be to ensure
stability in prices. Institutional sales or big government contracts are normally won through
bidding and this can also help determine the level of prices for specific projects. Lastly, cement
like any other commodity business is cyclical in nature and hence its realisations also depend
upon the position of industry in the business cycle.

Today, the prices across the country are going up to unprecedented levels and plants
here are able to reach out to faraway places in tune with the demand. As a result, all the cement
plants in the state are operating at 100 per cent capacity utilisation and with improved
bottomlines. The logistic cost for AP companies in meeting the local demand is less compared
to other states since cement plants are scattered all over the state.

Earlier, the local demand was hardly 30 per cent of the capacity and the prices in other
parts of the country were also not attractive due to transport costs. Now, the local demand is
more than 60 per cent of the capacity and the prices elsewhere in the country are reaching the
viable levels of Rs 180 to Rs 200 per bag. So, now the logistic costs are not coming in the way
of AP players to dispatch cement to distant places. Also, as limestone is available only in some
states like AP, we will always enjoy the benefit.

WHERE DOES INDIA STAND?

India's annual per capita cement production of 0.13 tonnes in FY2006 is significantly below the
world average of 0.3 tonnes and China's production of 0.76 tonnes during 2004. It has been
observed that cement consumption increases along with the rise in per capita income in developing
countries. Thereafter, once all the major developmental projects are in place and the country has a
per capita income comparable with that of the developed nations, the demand for cement
stagnates/declines. Accordingly, the per capita cement consumption also stagnates/declines.
Growth in population density is a minor (but steady) driver of demand growth for cement in all
countries. Cement consumption has a strong co-relation with GDP growth. High GDP growth leads
to high cement consumption. The reverse is true when GDP growth declines. The cement intensity
of GDP (i.e. rate of growth of cement consumption relative to GDP growth) is different for
different countries. For a under-developed country, the cement intensity of GDP is very low. It
rises with the progress in economic development, reaches a peak level, and then starts declining
once all the developmental projects are in place and the country has achieved a very high level of
economic growth.

While the Indian cement industry is in a surplus position since a long time, the surplus position is
gradually declining. While limited greenfield capacity is envisaged in the near to medium term, it
is very easy to increase capacity through either brownfield projects or by resorting to
manufacturing blended cements. As per present expansion plans, an additional 6.6 mtpa of
capacity is expected to be operational in FY2008. Considering an expected production and
consumption growth of 10% during FY2008 the demand supply position of the Indian cement
industry is expected to improve

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The cement industry is going through its boom period with full capacity utilization. Powered by
the GDP growth of 8-9%, the annual demand for cement in the country continues to grow at 8-
10%. As per NCAER study, under high growth scenario, the demand for cement (including
exports) is expected to increase to 244.82 million tonnes by 2010-11. As per the study, the
demand is expected to be much higher at 311.37 million tonnes, if the optimistic projections of
the road and the housing sectors are met. The industry has responded to this with substantial
new capacity announcements. The materialization of these capacities, however, is likely to be
delayed due to a number of factors including timely delivery of equipment and construction of
the plant due to the heavy order book position of the suppliers. It is expected that demand
growth will outstrip supply till the materialisation of such new capacities.
However, the current high level of international crude prices and its impact on the domestic
prices of petroleum products is likely to make a dent in the profitability but its impact will have
to be seen depending upon the ability of the economy to pass on such cost increase to the
consumer.
While the freight cost could be optimized on the imported coal through usage of company’s
own ships for part of the quantity, the international prices of imported coal and its volatility
together with the strengthening of the dollar against rupee could derail this. This could impact
the delivery prices of imported coal and also the cost of production. The Government has taken
steps to increase the availability of indigenous coal for its expanded capacity across various
plants which can mitigate the impact of such high cost of imported coal for the plants located
near the coal fields in India.
The Government’s continuing efforts to rein in cement prices by freeing imports and
banning exports could artificially disable the normal market price mechanisms for determining
the price.

CONCLUSION
1. The rise in the price of cement is because of the gap of demand & supply in the market. The
demand for cement is much higher than its actual supply. But with the production maximization,
which can be encountered in next few year, this gap may narrowed down, that may ensure the
market to be in equilibrium.
2. Decreasing per capita consumption doesn’t affect the total consumption for the cement. It means
the infrastructure; contacted housing is using the bulk of the production.
3. In spite of High price of the product, the hick of demand because of the increasing rate of
infrastructural development.
4. Domestic price of cement is rising as well as the imported cement price is lowering. So
altogether the supply of the cement, which is affordable, will increase. This may in decrease the
gap between supply and demand.
5. Major Demand was from the housing sector, which may shift to infrastructure as lots of
infrastructural development processes has already being taken up & due to the increased price,
housing segment started showing a slowdown.
WHERE DOES FUTURE LIES?

The government has till now taken several initiatives to maintain the current level of
demand and to boost it further:

The Planning Commission for the formulation of X Five Year Plan constituted a 'Working
Group on Cement Industry' for the development of cement industry. The Working Group has
identified following thrust areas for improving demand for cement;

• Further push to housing development programmes

• Promotion of concrete Highways and roads

• Use of ready-mix concrete in large infrastructure projects.

Following points also represents some measures that are required for futuristic growth of cement
industry:

• Signs of a revival
• growth in the housing sector
• central road fund established for national highways and railway over bridges to provide
the necessary impetus
• expansion plans, Greenfield projects on the anvil
• Demand - supply balance expected in the next 12 - 15 months
• Higher capacity utilization likely in the future
• Encouraging trend in demand due to pick-up in rural housing demand and industrial
revival

 
 
 
 
 
 

 
 

BIBLIOGRAPHY
 
 
1. www.managementparadise.com 
2. www.zeenews.com/articles 
3. www.economictimes.indiatimes.com 
4. www.researchandmarkets.com/reports 
5. T.R. JAIN & V.K OHRI, Introduction to Economics 
 

REFERENCES
1. www.in.reuters.com/article/businessNews/idINIndia 
2. www.google.com