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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)
YEAR 16th century 1760 1824 HAPPENINGS
Roman’s 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”.
1904 1914 1924 1939 1947
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) year 1961 1965 1970 1975 1985 1995 2005 Cement produce in (Mt.) 8.32 10.59 13.95 16.21 43.42 75 115
CURRENT SCENERIO IN INDIA:--India’s position worldwide.
Avg. Quantity of comsumption----
Avg. growth in last 5 years----
Avg. demand growth in last 5 yrs---- From 5% to 16%
FACTOR’S RESPONSIBLE FOR THE GROWTH OF THE SECTOR:-- Technological
1. Dry process 2. Wet & semi dry process 3. Waste heat recovery 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
Rotary kiln Clinker
Fine clinker Gypsum Portland
MAN POWER IN CEMENT INDUSTRY:--Avg. total of man power-- 2600 Executive level– 100 Middle level– 150 Workers– 2350 (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
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)
Product portfolio-- viscose staple fibre(VSF),
grey cement, white cement, sponge iron, chemicals taxiles. With the acquisition of Ultratech, L&T’s cement divison in early 2004, Grasim has now become the world’s 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) 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)
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 TN.
Lafarge India:--- (capaciy- 5.5 million tonnes)
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) 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 India’s largest cement exporter and one of the most cost efficient firms.
6. Jaiprakash Associates Ltd.:--(capacity-14.70 million tonnes) 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)
JK synthetics, a Singhania Group Company, started manufacturing nylon at Kota in 1962. into JK Synthetics limited is restructuring its business divisons two separate entities- JK Cements and JK Synthetics. cement plant at Nimbahera in Rajasthan, and manufacturing white cement.
(capacity- 41 million tonnes)
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) product portfolio-- textiles, rayon cement pulp &paper, shipping, builders property & land development. Cement is the largest divison of CTIL and contributes to over 40% of the company’s revenues. CTIL has four plants that manufacture cement, one in CG, two in MP and one in Mahahrashtra.
10.Birla Corporation Ltd.--Product portfolio--acetylene gas parts, casting cement jute goods calcium carbide the company has two plants in Madhya Pradesh and Rajasthan and one each WB and UP Large quantities of its cement are 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 2009 and 2010. ACC is expanding capacity by a third to 30 MT by 2010 .
. . 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 Fire Clay Prices 8.5 percent 13.9 percent 30 percent
2. Absence of specific measures for interest rate reduction
3. Excise structure 4. Exemption limit of income tax on housing 5. Service tax on the railway
6. Monsoon season
7. Land acquisition, equipment and machinery receipts, labor
8. Export ban, influx of imported cement, extreme liquidity crunch and slowing demand. 9. Cement is a bulky commodity and cannot be easily transported
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 (Cost’s: 600 cores )
REFFERENCE:--1.Macfadyen, J.D., cement and cement raw materials, Industrial minerals and rocks, edition 7th 2006, p.p.- 1121 to1136. 2.www.artchive.com/artchive/r/roman/roman_pantheon.jpg 3.www.seekingalpha.com/author/hard-assets-investor/follower 4.Business Today, july2009,p.p.- 106 to110 5.http://www.financialexpress.com/news/cement-industry-happy-with-infraspend/486863 6.http://www.articlesbase.com/business-article/the-indian-cement-industry1042800.html 7.www.scribd.com 8.Dara S., S.Chand, New Delhi 2006, p.p-384,384 9.www.economywatch.com 10. www.businesstoday.com/article/cement -industry-in-India
11 www.lafargeindia.co.in 12. www.indiacement.com 13. www.acccement.com 14.www.centurycement.co.in 15.www.jkcement.com 16.www.ambujacement.com 17. NEWS, Holcim, Number-376, Issue-04/2008, p.p.-12,13 18. www.pdf-search-engine.com/top10-cement-company-in-india-pdf.html .