Cement industry

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Cement industry

  1. 1. CEMENT INDUSTRY CONSTRUCTING THE FUTURE
  2. 2. Cement Industry – AnIntroduction• India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT), has got a huge Cement Company.• The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India.
  3. 3. Cement Industry – An Introduction• It is also predicted that the cement production in India would rise to 236.16 MT in FY11. Its also expected to rise to 262.61 MT in FY12.
  4. 4. DEFINITIONS
  5. 5. Definitions• PV Ratio - The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitability.• Fixed Cost - A cost that does not change with an increase or decrease in the amount of goods or services produced.
  6. 6. Definitions• Variable Cost - A corporate expense that varies with production output.• Contribution Per Unit - A quantitative assessment of the amount that each good or service sold by a company adds to its total sales numbers.• BEP - Point at which gains equal losses.
  7. 7. ULTRATECH CEMENT
  8. 8. UltraTech Cement• UltraTech Cement Limited is among the world’s top 10 cement companies.• The company has an annual capacity of 48.8 million tonnes, and manufactures and markets ordinary Portland Cement, Portland blast furnace slag cement and Portland Pozzalana Cement.
  9. 9. UltraTech Cement• The company has eleven integrated plants, one white cement plant, twelve grinding units and five terminals — four in India and one in Sri Lanka.
  10. 10. UltraTech CementVariable cost 6475.49 4774.93 4491.38 3614.69 3307.28Production Quantity (Cr. 3.36 1.76 1.59 1.51 1.46Tonne)Variable cost PU 1929.24 2707.03 2831.18 2398.76 2259.84Variable cost (%) 60.35% 70.98% 73.12% 71.03% 70.43%Fixed Cost 4253.90 1952.43 1651.15 1474.60 1388.81Fixed Cost (%) 39.65% 29.02% 26.88% 28.97% 29.57%Contribution 6730.15 2267.89 1894.12 1897.74 1601.77Contribution (%) 50.96% 32.20% 29.66% 34.43% 32.63%Contribution PU 2005.11 1285.72 1193.97 1259.37 1094.48P/V Ratio 0.51 0.32 0.30 0.34 0.33BEP in unit 2.12 1.52 1.38 1.17 1.27BEP in volume 8346.84 6063.17 5566.39 4283.32 4256.38Margin of Safety 1.23 0.25 0.20 0.34 0.19Margin of Safety (%) 58.21% 16.16% 14.72% 28.70% 15.33%
  11. 11. JK CEMENT
  12. 12. JK Cement• J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania.• Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India.
  13. 13. JK CementVariable cost 1916.54 1487.06 1217.61 1061.07 938.7Variable Cost (%) 90.78% 90.60% 90.51% 91.34% 92.45%Fixed Cost 194.70 154.29 127.63 100.66 76.64Fixed Cost (%) 9.22% 9.40% 9.49% 8.66% 7.55%Contribution 444.81 566.10 446.81 534.50 404.94Contribution (%) 18.8% 27.6% 26.8% 33.5% 30.1%Production quantity (Crore Metric 0.55 0.46 0.40 0.40 0.39Tonnes)Contribution Pu 808.21 1234.27 1103.36 1336.94 1041.06P/V ratio 0.19 0.28 0.27 0.33 0.30BEP (Volume) 1033.60 559.59 475.44 300.49 254.30BEP (Units) 0.24 0.13 0.12 0.08 0.07MOS 0.31 0.33 0.29 0.32 0.32MOS (%) 128% 267% 250% 431% 428%
  14. 14. MADRAS CEMENT
  15. 15. Madras Cement• Madras Cements Ltd is the flag ship company of RamCo Group, a well known business group of South India. It is based at Chennai.• The cement capacity is 10.49 million tons per annum.• The company is the fifth largest cement producer in the country.
  16. 16. Madras CementVariable Cost 1833.46 1767.45 1628.87 1149.24 916.55Variable Cost % 0.91 0.91 0.92 0.91 0.91Fixed Cost 172.53 179.81 147.47 118.34 85.96Fixed Cost % 0.09 0.09 0.08 0.09 0.09Contribution 787.25 1039.73 900.37 856.08 650.82Contribution % 0.30 0.37 0.36 0.43 0.42Production Capacity 0.73 0.80 0.65 0.58 0.57Contribution Pu 1077.73 1295.43 1379.65 1464.61 1148.11 1600858.1 1388029.8 1068895.0BEP (units) 807995.08 748711.57 5 5 3BEP in Rs 2620.71 2807.18 2529.24 2005.32 1567.37P/V Ratio 0.30 0.37 0.36 0.43 0.42 5703816.8 6638088.1 5457184.9 5037098.9 4919930.4MOS 5 5 7 2 3MOS %tage 3.56 4.78 5.11 6.23 6.57
  17. 17. INDIA CEMENT
  18. 18. India Cement• The India Cements Ltd was established in 1946 and the first plant was setup at Sankar-Nagar in Tamil-Nadu in 1949.• Seven plants spread over Tamil-Nadu and Andhra Pradesh.• The capacities as on March 2010 have reached 14.05 mtpa.
  19. 19. India CementVariable Cost 2,664.46 2,540.95 2,117.90 1,726.87 1,376.66Variable Cost (%) 86.67% 86.29% 87.04% 87.13% 90.90%Fixed Cost 409.92 403.88 315.24 255.11 137.74Fixed Cost (%) 13.33% 13.71% 12.96% 12.87% 9.10%Contribution 3413.29 3687.06 3358.34 3044.25 2255.21Contribution (%) 100.00% 100.00% 100.00% 100.00% 100.00%Production 1.00 1.05 0.91 0.92 0.84CapacityContribution PU 3420.03 3513.64 3685.88 3296.63 2677.28BEP (Units) 1198586.87 1149463.87 855262.79 773851.77 514477.38BEP (Volume) 409.92 403.88 315.24 255.11 137.74P/V Ratio 1.00 1.00 1.00 1.00 1.00MOS 8781713.13 9344104.13 8256091.21 8460589.23 7909034.62MOS (%) 732.67% 812.91% 965.33% 1093.31% 1537.29%
  20. 20. ACC CEMENT
  21. 21. ACC Cement• Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology.• Among the first companies in India to include commitment to environment protection as a corporate objective.• ACC is now part of the worldwide Holcim
  22. 22. ACC CementVariable cost 5,252.12 4,853.55 4,762.99 4,252.68 3,505.30Variable % 87.14% 88.50% 87.44% 85.74% 87.36%Fixed Cost 775.22 630.43 684.03 707.24 507.10Fixed Cost % 12.86% 11.50% 12.56% 14.26% 12.64%Contribution 2,395.65 3,168.04 2,466.98 2,642.11 2,226.45Contribution % 31.32% 39.49% 34.12% 38.32% 38.84%Production Capacity 2.1375 2.1369 2.0836 1.99 1.8733Contribution PU 1120.77193 1482.540128 1183.998848 1327.693467 1188.517589BEP in units(Tonnes) 6916839.897 4252363.818 5777286.026 5326831.964 4266659.615BEP in Rs. 2474.778978 1596.271191 2004.684424 1845.597375 1305.473029P/V ratio 0.313248176 0.394939158 0.3412158 0.383203839 0.388441575Margin of Safety(Tonnes) 14458160.1 17116636.18 15058713.97 14573168.04 14466340.38Margin of Safety % 209.03% 402.52% 260.65% 273.58% 339.06%
  23. 23. ANALYSIS
  24. 24. Comparison Between Companies• Variable Cost Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 ACC 87.14% 88.50% 87.44% 85.74% 87.36% JK Cement 90.78% 90.60% 90.51% 91.34% 92.45% India Cement 86.67% 86.29% 87.04% 87.13% 90.90% Madras Cement 91.40% 90.77% 91.70% 90.66% 91.43% Ultratech Cement 60.35% 70.98% 73.12% 71.03% 70.43%
  25. 25. Fixed Cost Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 ACC 12.86% 11.50% 12.56% 14.26% 12.64% JK Cement 9.22% 9.40% 9.49% 8.66% 7.55% India Cement 13.33% 13.71% 12.96% 12.87% 9.10% Madras Cement 8.60% 9.23% 8.30% 9.34% 8.57% Ultratech Cement 39.65% 29.02% 26.88% 28.97% 29.57%
  26. 26. Contribution PU Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 ACC 1120.772 1482.54 1183.999 1327.693 1188.518 JK Cement 808.2103 1234.272 1103.36 1336.943 1041.056 India Cement 750.3081 1092.202 1361.422 1426.594 1042.974 Madras Cement 1077.734 1295.433 1379.649 1464.613 1148.106 Ultratech Cement 2005.109 1285.725 1193.974 1259.367 1094.479
  27. 27. P/V Ratio Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 ACC 0.313248 0.394939 0.341216 0.383204 0.388442 JK Cement 0.188371 0.275721 0.268448 0.33499 0.301375 India Cement 0.219387 0.310847 0.369361 0.432744 0.389565 Madras Cement 0.300396 0.370382 0.355984 0.426904 0.415231 Ultratech Cement 0.509642 0.322014 0.296628 0.344266 0.326289
  28. 28. Margin Of Safety Dec 10 Dec 09 Dec 08 Dec 07 Dec 06 ACC 209.03% 402.52% 260.65% 273.58% 339.06% JK Cement 128.46% 266.91% 250.08% 431.00% 428.37% India Cement 82.68% 183.77% 293.49% 416.40% 537.83% Madras Cement 356.30% 478.24% 510.54% 623.41% 657.12% Ultratech Cement 58.21% 16.16% 14.72% 28.70% 15.33%
  29. 29. CONCLUSION
  30. 30. A PRESENTATION BY: Adil Anwar (11DCP003)Amritanshu Mehra (11DCP008) Ravi Gupta (11DCP038) Rohit Aggarwal (11DCP040)

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