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 HAPPENINGS

16th century Roman’s was the first to use pozzolan

cement in making of Pantheon.

1760 John Smeaton was first to develop best

composition of hydrualic cement.

1824 Joseph Aspdin was granted a patent (no.

5022) for “Portland cement”.
(INDIA)
YEAR HAPPENING
1904 First cement factory was started in Chennai.

1914 Manufacture of Portland cement on large scale

started by Indian Cement Co.Ltd.

1924 10 cement factories in India with total production of

5.81 lakh tonnes PA.

1939 17 Factories in India with total capacity of 26.15

lakh tonnes PA.

1947 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 Cement produce in
(Mt.)
1961 8.32
1965 10.59
1970 13.95
1975 16.21
1985 43.42
1995 75
2005 115
CURRENT SCENERIO IN INDIA:---

India’s 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%

FACTOR’S 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 cement-
1.WET Process
2.SEMI-DRY Process
3.DRY Process
Raw material

Lime stone Clay

Crushin Washin
g g

Proportioni
ng

Grindin
g
Dry method Wet method

Dry powder Slurry

Rotary
kiln

Clinker

Grindin
g

Fine clinker
Gypsum

Portland

Packagi
ng

Shipmen
t
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 Capacity

1. Gracim Ulratech 31 mt
2. ACC 22.4 mt
3. India Cement 9 mt
4. Lafarge Cement 5.5 mt
5. GACL 18.5 mt
6. Jaypee 14.7 mt
7. JK cement 3.65 mt
8. Holcim 41 mt
9. Century cement 7.8 mt
10. Birla cement 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.
. 4. 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.
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)
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 .
.
. by increasing its holding in
Holcim strengthened its position in India
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 8.5 percent

Limestone Prices 13.9 percent

Fire Clay Prices 30 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
(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-infra-
spend/486863

6.http://www.articlesbase.com/business-article/the-indian-cement-industry-
1042800.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
.