Beruflich Dokumente
Kultur Dokumente
Business Turnaround
At
The India Cements Ltd.
Abhinaba Chatterjee A017 Arnav Bahadur F006
Mridul Sharma E059
Sujoy Kapoor C031 Mrityunjay Dhamar F016
Vaishak Anil F002
Sarthak Mahajan C037 Abhinav Mishra F038
Industry Overview
2nd Largest Cement producer after CHINA Domestic Cement Consumption on an up-trend
Production Capacity 431.4 Million Tons
Expected to reach 407 Million Tons by the end of 2017
Per-capita consumption - 190 kg (Global Average 350 kg)
IN MID 90S WITH A CAPACITY OF 2.6 MN TONNES, INDIA CEMENTS WERE LOSING MARKET SHARE
EXPONENTIALLY
ACQUIRED VISAKA CEMENTS AND CEMENT CORP. OF INDIAS YERRAGUNTLA UNIT. ALSO, ACQUIRED
RAASI CEMENTS THROUGH HOSTILE ACQUISITIONS
ALL THE ACQUISITION COST WHICH WAS AROUND RS. 1,600 CR WERE PREDOMINANTLY FUNDED BY
DEBT
WHEN THE GOVT. REDUCED TAXES IN THE CEMENT INDUSTRY, IT FURTHER INCREASED THE COMPETITION IN
THE INDUSTRY
THIS GAP BETWEEN SUPPLY AND DEMAND LEAD TO CRASHING OF CEMENT PRICES
THERE WAS A DEBT OF 1750 CR, BUT DUE ROCK BOTTOMED PRICES THEY WERE NOT ABLE TO SERVICE
THEIR DEBTS
KNEE-JERK REACTION: SELLING OF VISHNU CEMENTS PLANT FOR 385CR TO BRING LIQUIDITY BUT IT WAS
STILL INSUFFICIENT
Emergency Action
REPERCUSSIONS:
INITIATED LAYOFFS, CUT PRODUCTION COSTS, SOLD OFF NON PERFORMING ASSETS(ESTIMATED AT 70CR) AND
SOLD LAND ASSETS AS WELL