HISTORY OF CEMENT INDUSTRY IN INDIA

Cement industry is one of the largest industries of the largest industries of the world and
occupies predominant place as one of the basic industries for development and its
employment generation capacity. Cement ranks next to steel in construction material and so
is the basis of all modern constructions.

John Smeaton, who is also known as “father of civil engineering’’ and credited for design of
many bridges, canals, harbors etc. was the first proclaimed civil engineer and pioneered the
use of ‘hydraulic lime’, which led to discovery of modern cement. The common cement or
Portland cement was prepared and patented by Joseph Aspdin in 1824. In the later part of
19th century, cement production was taken up by many countries many decades after the first
patent was taken by Aspdin in England.

India entered into cement Era in 1914, when the Indian cement company Ltd. Started
manufacturing Cement in Porbundar in Gujrat. However, even before that a small cement
factory was established in Madras in 1904 by a company named South India Industrial Ltd.
Indian Cement Company Ltd produced only one type of cement which was designed by the
British standard committee as “Artificial Portland Cement”. This company marketed its
product in Mumbai, Karachi, Madras and other parts and became a financial success. At that
time India had to import cement from England. The price of the imported cement was higher.
Some other factors such as increase in domestic demand, reduction in supply from abroad
(due to war), availability of Indian Capital, ample raw material, Cheap labour, support of the
government etc. made it a leading industry in India in a short period of time.

 In January 1915, a cement unit was started at katni in Madhya Pradesh.

 In December 1916, another unit at Lakheri in Rajasthan was started.

During the First World War period, cement production in these three important factories was
taken under control of the government and later the control of the government and later the
control was lifted once the war was over. After the war, 6 more units were launched in India.
In 1924, India’s cement production was 267000 tons. However, initially this increased
production could not reduce the imports and the industry suffered a rate war. This led to
closure of many indigenous units.
 KEY LANDMARKS IN HISTORY OF CEMENT

 In 1925, first association of the cement manufacturers was formed as “Cement

Manufacturers Association’’
 It was followed by “Concrete Association of India” in 1927.
 In 1930 “Cement Marketing Company of India” was started and this was followed by
a quota system on the basis of installed capacity of the factories.
 In 1936, all the cement companies except one i.e. Sone valley Portland Cement
Company agreed and formed Associated Cement Companies Ltd. (ACC). This was
the most important even in the history of cement industry in India. Many more
companies were established in the following years.
 Before partition India had 24 factories, out of which India retained 19 factories, which
annual production of 2.1 million tons. Pakistan faced a problem at the supply side as it
had problem of disposal of the cement produced and India faced a problem in demand
side as production fell to 2.1 million tons from 2.7 million tons.
 After Independence, the partition of the country had a bad impact on the cement
industry.
 CEMENT MANUFACTURING

Cement is typically made from limestone and clay or shale. These raw materials are extracted
from the quarry crushed to a very fine powder and then blended in the correct proportions.
This blended raw material is called the 'raw feed' or 'kiln feed' and is heated in a rotary kiln
where it reaches a temperature of about 1400 C to 1500 C. In its simplest form, the rotary kiln
is a tube up to 200 metres long and perhaps 6 metres in diameter, with a long flame at one
end. The raw feed enters the kiln at the cool end and gradually passes down to the hot end,
then falls out of the kiln and cools down. The material formed in the kiln is described as
'clinker' and is typically composed of rounded nodules between 1mm and 25mm across.
After cooling, the clinker may be stored temporarily in a clinker store, or it may pass directly
to the cement mill. The cement mill grinds the clinker to a fine powder. A small amount of
gypsum-a form of calcium sulphate-is normally ground up with the clinker. The gypsum
controls the setting properties of the cement when water is added.
 PRODUCT INFORMATION

“Cement is a material which possesses adhesive and cohesive properties and capable of
binding materials like bricks, stones, building blocks etc. ’’

“Cement is a crystalline compound of calcium silicates and other calcium compounds having
Hydraulic properties”.

Cements used in construction can be characterized as being either Hydraulic or Non-

Hydraulic, depending upon the ability of cement to set in the presence of water.

Hydraulic cements ( Portland cements)- Set and become adhesive due to chemical reaction
between the dry ingredients and water. The chemical results in mineral hydrates that are not
very water soluble and so are quite durable in water and safe from chemical attack. This
allows setting in wet condition or underwater and further protects the hardened material from
chemical attack. The chemical process for hydraulic cement found by ancient Romans used
Volcanic Ash with Lime.

Non-Hydraulic cement will not set in wet conditions or underwater, rather it sets as it dries
and reacts with Carbon Dioxide in air. It can be attacked by some aggressive chemicals after
setting.
 MAJOR COMPANIES

ACC Ltd.

ACC was founded in the year 1936 and has its headquater in Mumbai. They are the largest
cement company of India with 12 manufacturing units spread in all major states of country.
ACC produces range of cement from cost effective to luxury segments. Company is listed in
Bombay and National stock market and has more than
1000000 employees. It has annual revenue of 114 billion
and has global presence.

AMBUJA CEMENTS

Establised in year 1983 and popularly known as Ambuja

Cement, this cement company is 2nd largest producer of
cement in India. All their plants collectively have
capacity of producing 16000000 tons of cement.

ULTRATECH CEMENT

Ultratech cement incorporated in the year 1987

has been a pioneer and trend –setter in Indian
Cement industry. They are 100% subsidiary of
Fortune 500 Company-Aditya Birla Group.