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Cement & construction Cement & construction Presentation Transcript

  • Cement & Construction An Industry Overview
  • Overview (Major focus on Cement Sector) INDIAN CEMENT & CONSTRUCTION SCENARIO
  • What is Cement & Construction? • Cement : A cement is a binder, a substance that sets and hardens independently, and can bind other materials together. • Construction: Construction is a process that consists of the building or assembling of infrastructure.
  • Indian Cement Industry India is the second-largest cement producing country in the world after China. In India, cement demand emanates from four key segments: Cement Demand Housing Infrastructure Commercial Construction Industrial Sector
  • Indian Construction Industry • The construction industry is the second largest industry of the country after agriculture. • It makes a significant contribution to the national economy and provides employment to large number of people. • The use of various new technologies and deployment of project management strategies has made it possible to undertake projects of mega scale. • In its path of advancement, the industry has to overcome a number of challenges Housing Disaster Resistant Construction Water Management Mass Transportation
  • Importance of cement in construction • Cement is a very important building material used in the construction industry. • Cement has replaced all other binding materials, for example, clay and lime. Cement is the strongest binding material. • Cement is now used in many construction trade items like Plain Concrete, Reinforced Concrete, Mortar, Plaster, Grouts, Paints and in Pre-cast Elements. • In an ordinary building construction the cement accounts to about 15-17% of the cost of construction. In some other major constructions like concrete roads and bridges, it is very much more.
  • CEMENT MANUFACTURERS' ASSOCIATION (CMA) • • • • Cement Manufacturers' Association (CMA) is the most important apex body of cement manufacturers in India which was established in 1961. It is a unique body in as much as it has been both the private and public sector cement companies as its members. CMA acts as a bridge between the Indian cement Industry and the Government. Its registered office is in New Delhi, Corporate Office in Noida, Branch offices are in Mumbai and Hyderabad. Main Objectives: To promote the growth of the whole of the cement industry. To protect the consumer interests and even their adaptability. To identify newer applications of cement usage. To establish contacts with similar bodies abroad for exchange of information, data, publications, etc.
  • Top Indian Cement Companies Market Share 25% 22% 20% 15% 10% 5% 0% 15% 13% 10% 7% 6% 5% 5% 5% 4% 4% Market Share
  • Top Global Cement Companies • • The world’s cement-makers rake in revenues of $250 billion a year. Outside China, which accounts for half of global demand and production and is mainly served by local firms, six vast international firms— Buzzi, Cemex, Heidelberg, Holcim, Italcementi and Lafarge—together have 40% or so of the market. 43 37 81 35 Capacity 231 96 212 114 150 170 Lafarge Holcim CNBM Anhui Conch Heidelberg Cemex Italcementi Buzzi Eurocement Cimpor
  • TOP 5 NATIONAL CEMENT COMPANIES
  • Top 5 Indian Cement Companies 1. UltraTech Cement Corporate office - Mumbai, Maharashtra | Establishment – 1987 | Business – Cement and Read mix concrete | Website – www.ultratechcement.com | UltraTech cement is largest clinker producer and exporter which has an annual capacity of more than 50 million tonnes. It is a flagship company of Aditya Birla group and leading cement company which acquired all ISO and OHSAS certifications. 2. ACC Limited Corporate office - Mumbai, Maharashtra | Establishment – 1936 | Business – Cement and Read mix concrete | Website – www.acclimited.com| ACC cement limited is one of the top cement company in India established in 1936 which is also a leading player in ready mix concrete. It is part of the world’s leader Holcim Group. 3. Ambuja Cement Corporate office - Mumbai, Maharashtra | Establishment – 1983 | Business – Cement and Read mix concrete | Website – www.ambujacement.com | Ambuja Cement is among of the top 5 cement companies in India. It was founded in year 1983 and formerly known as Gujrat Ambuja cement Ltd. Company has an annual capacity to produce more than 27 million tonnes.
  • Top 5 Indian Cement Companies 4. Jaypee Cement Corporate office - Noida, Uttar Pradesh | Establishment – 2001 | Business – Cement, Infrastructure and construction | Website – www.jalindia.com | Jaypee is a well known corporate group in the business of power, infrastructure, construction and highway. Company started cement business in the year 2001 and has annual capacity to manufacturer almost 35 MTPA. 5. India Cement Corporate office - Chennai, Tamilnadu | Establishment – 1946 | Business – Cement business | Website – www.indiacements.co.in | India cement is leading cement manufacturer in southern region of India which was established a cement plant in Sankarnagar in year 1946 and since then setup total 7 plants in various part of Andhra Pradesh and Tamilnadu. Company has an annual capacity to produce 15 MTPA cement.
  • Porters Five Forces Model Cement Industry Entry Barriers HIGH : high capital investment and economies of scale mark high barriers for entry Supplier Power MEDIUM/MODE RATE: fuel and freight are important ingredients which makes industry local by very nature Inter Firm Rivalry LOW : Oligopolistic Nature power with few major players Threat of substitutes LOW: Cement has no substitutes practically in all areas where it is used. Buyer Power LOW: high concentration on local market drive away consumer buying power
  • Top 5 GLOBAL CEMENT COMPANIES
  • Top 5 Global Cement Companies 1. Lafarge Cement company: Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. The company is the world's largest cement manufacturer. CEO: Bruno Lafont , Founded: 1833 Website: www.lafarge.com 2. Holcim Cement : Holcim is a Swiss-based global building materials and aggregates company. The company also supplies ready-mix concrete and asphalt including associated construction services. the Group has grown into a global company with market presence in over 70 countries on all continents. Founded: 1912 Website: www.holcim.com
  • Top 5 Global Cement Companies 3. China National Building Material: Company or CNBM established in 1984, is a state-owned enterprise . CNBM is currently the largest cement and gypsum board producer in China in terms of production capacity. It is also the largest glass fiber producer in Asia in terms of production capacity. Website: www.cnbmltd.com 4. Anhui Conch Cement Company Limited: Founded: 1997, Anhui Conch Cement, is the largest cement manufacturer or seller in Mainland China, headquartered in Anhui Province. Its business scope covers the manufacture and sales of cement and clinker Website: http://english.conch.cn/ 5. Heidelberg Cement: Founded: 1874 Heidelberg Cement is a German multinational building materials company headquartered in Heidelberg, Germany. In 2010, it was the world's third largest cement producer, the market leader in aggregates and fourth in ready-mix concrete Website: www.heidelbergcement.com/
  • Supply Chain CEMENT INDUSTRY
  • Cement Industry
  • Demand Supply Cement Industry
  • Trade Restriction RESTRICTIONS IN INDIA
  • Trade Restrictions in India Indian Cement Industry • Indian cement industry has witnessed an increase in its export .The international cement demand is derivative in nature as it depends on the constructional activities, real estate, industrial activities. • Indian cement industry has transited itself into more advanced one. The Indian cement industry is not only meeting the requirements arisen within the domestic territory but also fulfilling the burgeoning demands of the international arena. • India is also exporting good amount of cement clinker and by products of cement. Due to the superlative quality, the Indian cement has occupied the high position on the global map.
  • Restrictions in India • Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius and UAE are major export destinations for the cement industry. • Exports constitute less than one per cent of the capacity. India is largely self-sufficient in cement production and its import is less than one million tonnes. • • • . The prices of cement are determined by the market forces, as this industry has been de-licensed under the Industrial (Development & Regulation) Act, 1951. The price and distribution control of cement has been removed since 1989. Cement has also been deleted from the list of essential commodities w.e.f 15th February, 2002
  • Restrictions in India • Indian cement industry appears to be the highest taxed cement industry among the selected countries such as China/ Hong Kong, Bangladesh, Etc. This makes prices of Indian cement noncompetitive vis-à-vis other countries in international market. • Cement' has been a de-controlled commodity and, therefore, it has been subject to forces of open market, i.e., 'demand and supply'.
  • Restrictions in India The Tariff Commission has indicated that the retail price of cement in India is second highest next only to Japan. The Tariff Commission felt that the high retail cost of Indian cement can be attributed to the following factors:(i) High cost of raw material; (ii) High power cost; (iii) High transportation cost; (iv) Dependence on road transport for movement of clinkers to cement; and (v) Profit motive of the cement companies
  • Highlights of Indian Cement Industry @ as on 31st March, 2012 via http://www.cmaindia.org/ Large cement plants • • • • • • • Installed Capacity (Mn. t.) Turnover in 2011 (Mn. US$) around Manpower Employed (Nos.) Approx. Plants with Capacity of Million tonnes and above (Nos.) Cement Production (Mn. t.) 2011-2012 Cement Plants (Nos.) Companies (Members) (Nos.) 244.05 19,500 1,20,000 102 179.87 144 42 Mini & White Cement Plants • Cement Production (Mn. t.) 2011- 12 • Cement Plants (Nos.) Approx. • Installed Capacity (Mn. t.) 6.00(P) 365 11.10
  • Conclusion • • • Cement is a success story of deregulation. In 20 years of de-control, the capacity has gone to 330 million tonnes. If this capacity had not been added, India’s growth would have been severely constrained. A combination of several factors has led to the slow down in cement sector - the global slowdown caused by the financial crisis, domestically the drop in investment in infrastructure and housing coupled with a high interest-rate regime and not to mention the inflation. • cement is a long-term business. You cannot look at cement on a quarter-toquarter basis or a year-to-year basis. • As growth is slowly picking up cement demand will also increase slowly.