The cement industry in India has grown significantly over the past century. It began in the late 1800s with small, disorganized production facilities. The first licensed cement plant was established in 1914. Government policies from the 1950s-1980s aimed to promote self-sufficiency and control prices and distribution. Since the 1990s, the industry has been deregulated and attracted major foreign and domestic investments. It is now one of the largest cement industries globally, driven by growth in infrastructure, housing, and construction. Several large companies have recently announced billions of dollars in new investments to expand capacity.

1. 1 | P a g e
G.H. PATEL P. G. INSTITUTE OF BUSINESS MANAGEMENT
(SARDAR PATEL UNIVERSITY)
V.V.NAGAR, ANAND
Comprehensive Project
[CEMENT INDUSTRY]
[SUBMISSION DATE: 11/29/17]
CLASS: MBA (III) BATCH: [2016-18]
SUBMITTED BY:
MANSI BHIMANI (16F55)
MAHMMADJAMEERKHAN PATHAN (16M21)
SUBMITTED TO:
project Guide:-
- DR. RAJNIKANT PATEL

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INDEX
Sr.No Chapter No Page No
1
1.1
1.2
1.3
1.4
1.5
1.6
INTRODUCTION
Introduction
Objectives
Scope
Methodology
Importance
Significance
7 to 13
13 to 14
14
14
15
15 to 16
2
2.1
2.2
2.3
2.4
Growth And Evolution
ProductProfile
Innovation Potential
Economic Policy
Industrial and Trade Policy
18 to 20
21 to 22
23
23 to 24
24

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3
3.1
3.2
3.3
3.4
3.5
Demand Analysis
Demand Determination
Income
Penetration
Technology
Life cycle stage
26
27
27
29
29
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Market Analysis
Marketing Research
Trends in the industry
Customer Service
Segmentation and Positioning
Distribution Channels
Pricing
Promotion
Quality And Technology
Logistics management
31
33 to 35
36 to 37
37
38 to 40
40 to 43
43 to 45
45 to 46
46 to 48
48 to 49

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4.10
4.11
4.12
Major Players India
Number of companies
Market Share of various firms
50 to 52
52 to 56
56
5
5.1
5.2
5.3
5.4
5.5
5.6
Financial Analysis
Profit Margin Analysis
Leverage Analysis
Profitability Analysis
Du-Pont Analysis
EPS
DPS
57
58 to 61
61 to 63
63 to 66
66 to 67
68
68 to 69

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5.7 P/E Analysis 69 to 70
6
6.1
6.2
6.3
Industry analysis
PESTEL Analysis
Five Force Model of Porter
SWOT Analysis
71
72 to 77
78
79 to 81
7
8
9
Futuristic Scenario of the Industry
Conclusions
Bibliography
82 to 84
85 to 86
87

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1). INTRODUCTION

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INTRODUCTION
The word cement has come from the Roman word ‘Opus Caementicium’. Cement is
a binder, a substance that seats and hardens independently, and can bind other materials
together. Joseph Aspdin, a British stonemason, invited Porland cement way back in 1824.
With this invention, Aspdin laid the foundation of today’s cement industry.
Cement is the glue that holds the concrete together, and is therefore critical for meeting
society’s needs of housing and basic infrastructure such as roads, hospitals. P
Cement Industry has grown much in last ten years. This sector has recorded a CAGR
of 8%, against the world cement industry average of 3.5% and China’s cement industry
growth rate of 7.2%. Today cement industry has become the second largest cement producer
in the world after China. Domestic cement demand growth has surpassed the economic
growth rate for the past three years. The key drivers for cement demand are real estate sector,
infrastructure and industry expansion projects. Among these real estate sector is the key
driver of cement demand. The demand for cement is closely related to the growth in the
construction sector. Consequently, cement demand has been posting a healthy growth rate of
around 8 per cent since 1997-98; Cement is bulky commodity and cannot be easily
transported over long distances making it a regional market place, with the nation being
divided into five regions. Each region is characterized by its own demand-supply dynamics.
Over the past few years the cost of cement production has grown at a CAGR of 8.4%. The
government has considered spending more than US $500 billion on infrastructure in the 11th
five year plan. Apart from this railways, urban infrastructure, ports, airports, IT sector,
organized retailing, malls and multiplexes will be the main sectors driving the demand of

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cement in the country. Pre Independence the first endeavor to manufacture cement dates back
to 1889 when a Calcutta based company endeavored to manufacture cement from
Argillaceous (kankar). But the first endeavor to manufacture cement in an organized way
commenced in Madras. South India Industries Limited began manufacture of Portland cement
in 1904.But the effort did not succeed and the company had to halt production. In 1914 that
the first licensed cement manufacturing unit was set up by India Cement Company Ltd at
Porbandar, Gujarat with an available capacity of 10,000 tons and production of 1000
installed. The First World War gave the impetus to the cement industry still in its initial
stages. The following decade saw tremendous progress in terms of manufacturing units,
installed capacity and production. This phase is also referred to as the Nascent Stage of
Indian Cement Industry.
Post-Independence:
The growth rate of cement was slow around the period after independence due to various
factors like low prices, slow growth in additional capacity and rising cost. The government
intervened several times to boost the industry, by increasing prices and providing financial
incentives.
In 1956, the price and distribution control system was set up to ensure fair prices for both the
manufacturers and consumers across the country and to red reduce regional imbalances and
reach self-sufficiency.
Period of Restriction (1969-1982)
The cement industry in India was severely restrained by the government during this period.
Government hold over the industry was through both direct and indirect means. In 1977 the

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government authorized higher prices for cement manufactured by new units or through
capacity increase in existing units. But still the growth rate was below par.
In 1979 the government introduced a three tier price system. Prices were different for cement
produced in low, medium and high cost plants. Rise in input cost, reduced profit margins
meant the manufacturers could not allocate funds for increase in capacity’s invention.
Post Liberalization
In 1989 the cement industry was given complete freedom, to gear it up to meet the challenges
of free market competition due to the impending policy of liberalization. In 1991 the industry
was de licensed.
Cement is one of the core industries which plays a vital role in the growth and expansion of a
nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates
of calcium, formed out of calcium oxide, silica, aluminum oxide and iron oxide. The demand
for cement depends primarily on the pace of activities in the business, financial, real estate
and infrastructure sectors of the economy. Indian cement industry is globally competitive
because the industry has witnessed healthy trends such as cost control and continuous
technology up gradation.

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Key Drivers of Cement Industry
 Buoyant real estate market
 Increase in infrastructure spending
 Various governmental programs like National Rural Employment Guarantee
 Low-cost housing in urban and rural areas under schemes like Jawaharlal
 Nehru National Urban Renewal Mission (JNNURM) and Indira Aawwas Yojana.
MANUFACTURING PROCESSES
There are two general processes for producing clinker and cement in India: a dry process and
a wet process. In general, the dry process is much more energy efficient than the wet process,
and the semi wet somewhat more energy efficient than the semi-dry process. The semi-dry
process has never played an important role in Indian cement production and accounts for less
than 0.2% of total production.
Over the last decade, increased preference is being given to the energy efficient dry process
technology so as to obtain a cost advantage in a competitive market. In 1960 around 94% of
the cement plants in India used wet process kilns. These kilns have been phased out over the
past 46 years. Dry process kilns are typically larger with capacities in India ranging from
300- 8,000 tons per day or tpd (average of 2,880 tpd). While capacities in semi-dry kilns
range from 600-1,200 tpd and capacities in wet process kilns range from 200-750 tpd
(average 450tpd).

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DRY PROCESS
In dry process production, limestone is crushed to a uniform and usable size, blended with
certain additives (such as iron ore and bauxite) and discharged on to a vertical roller mill
where the raw materials are ground to fine powder. An electrostatic precipitator deducts the
raw mill gases and collects the raw meal for a series of further stages of blending. The
homogenized raw meal thus extracted is pumped to the top of a preheater by air lift pumps. In
the preheaters the material is heated to 750°C. Subsequently, the raw meal undergoes a
process of 8 alcinations in a precalcinator. The remaining 8 alcinations and clinkerization
reactions are completed in the kiln where the temperature is raised to 1,450-1,500°C. The
clinker formed is cooled and conveyed to the clinker silo from where it is extracted and
transported to the cement mills for producing cement. For producing OPC, clinker and
gypsum are used and for producing PPC, clinker, gypsum and fly ash are used.
WET PROCESS
The wet process differs mainly in the preparation of raw meal where water is added to raw
materials to produce slurry. The chemical composition is corrected and the slurry is then
pumped to the kiln where evaporation of moisture, preheating, calcinations and sintering
reaction takes place. The clinker is cooled and transported, as in the case of other plants, with
suitable conveyors to cement mills for grinding. The wet process is more energy intensive,
and thus becomes expensive when power and energy prices are high.

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OBJECTIVES OF STUDY:
To find out the major competitors of top cement companies in India.
To find out the growth rate of cement industry in India.
To study political, economic, social, technological, environmental, and legal factor affected
to cement industry in India by doing PESTEL analysis.
To study rivalry competitions power of supplier, power of buyers , threat of substitutes ,
threat of new enters by doing Porter’s five force analysis.
To study financial position of top five companies in this industry by doing financial analysis.
To study the market share of major cement companies in India.

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To study the distribution channels of Indian cement industry.
To study the financial positions of major cement companies of India.
SCOPE OF STUDY:
The scope of the study lies in getting familiar with the performance of the Indian cement
sector and its characteristics. The paper has been prepared within the boundaries of topics
like basics of cement, overview of the cement industry, the steps taken up the government for
the growth of the cement sector, the challenges faced by the industry and future outlook.
METHODOLOGY OF STUDY:
 DATA COLLECTION METHOD:
Data has been collected through secondary sources.. Most of the data are historical in nature.
Previous five years data has been collected for this project. The data has been collected from
company financial report, historical data from moneycontrol.com, company’s websites and
various broking sites etc. The ratios of the companies have been calculated with help of
balance sheets and P&L account.
Data Analysis:
Data has been analyzed with the help of ratios and percentages. For financial analysis
company’s financial statements have been studied and ratios are computed out of it.

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IMPORTANCE OF STUDY
India is the second largest producer of cement in the world. No wonder, India's cement
industry is a vital part of its economy, providing employment to more than a million
people, directly or indirectly. Ever since it was deregulated in 1982, the Indian cement
industry has attracted huge investments, both from Indian as well as foreign investors.
India has a lot of potential for development in the infrastructure and construction sector
and the cement sector is expected to largely benefit from it. Some of the recent major
government initiatives such as development of 98 smart cities are expected to provide a
major boost to the sector.
Expecting such developments in the country and aided by suitable government foreign
policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat
have invested in the country in the recent past. A significant factor which aids the growth
of this sector is the ready availability of the raw materials for making cement, such as
limestone and coal.
SIGNIFICANCE OF STUDY
The Role of Cement Industry in India GDP is significant in the economic development of
the country. The cement industry in India is one of the oldest sectors in India.

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The industry is driven by the immense growth in the housing sector, the infrastructure
development, and construction of transportation systems.
Role of Cement Industry in India GDP-Fact:
 The Indian cement industry is one of the booming sectors of the Indian economy.
 The infrastructure development of the country in the recent years is the demand
driver for the cement industry.
 The Indian Cement Industry is experiencing the entry of many foreign players in
the Indian market.
 The average monthly capacity utilization during the year 2006-07 was 94%.
 The cement dispatches in the year 2006-07 was 155 million tonnes.
 The growth of the cement sector pertaining to the total output was 10% in 2006-07

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2). GROWTH AND EVOLUTION

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 Growth and Evolution of Cement industry
Let us take a look at the development of the Indian cement industry and the challenges it
faces and the opportunities available for further growth.
A cement plant was first set up in Calcutta (Kolkata) in 1889. In 1904, the first organized set-
up to manufacture cement began in Madras (Chennai) which was named South India
Industries Limited. In 1914, another cement manufacturing unit was set up in Porbandar,
Gujarat, but this time it was licensed by the British Government In the early years of the last
century, the demand for cement tremendously exceeded supply but after only a few years, the
industry faced a severe downfall. To recover from this situation, the Cement Association of
India was founded in 1927.
The organization had two prime goals: (1) to create awareness about utility of cement and (2)
to encourage cement utilization.
Even after Independence, the growth of the industry was gradual. In 1956, a Distribution
Control System was established with an objective to provide Indian manufacturers and
consumer’s self-sufficiency. The government then introduced a quota system to provide an
impetus to this industry, in which 66 per cent of the sales was imposed by the government on
small real estate developers. Today the industry has started focusing on exports also to double
the opportunity available for it in the global market. Cement manufacturers have transformed
themselves into leading exporters.
India is the world's second largest producer of cement with a total capacity of 219 million
tones at the end of FY 09, according to the Cement Manufacturers Association. Cement
dispatches during 2009-10 stood at 159.43 million tones, increasing by 12 per cent over
142.23 million tons in 2008-09. Cement production during 2009-10 was 160.31 MT, an

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increase of 12.37 per cent over 142.65 MT in 2008-09. The industry in India has successfully
maintained almost total capacity utilization levels, which resulted in maintaining a 10 per
cent growth rate.
Recent investments
In a recent announcement, the second largest cement company in South India, Dalmia
Cement, declared that it is going to invest more than $ 652.6 million in the next 2-3 years to
add 10 MT capacities.
Anil Ambani-led Reliance Infrastructure is going to build cement plants with a total capacity
of yearly 20 MT in the next five years. For this, the company will invest $ 2.1 billion.
India Cements is going to set up two thermal power plants in Andhra Pradesh and Tamil
Nadu at a cost of $ 104 billion.
Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement
plant in Maharashtra. It will invest $ 463.2 million for that project.
Jaiprakash Associates Ltd. has signed a MoU with Assam Mineral Development Corporation
Limited to set up a 2 MT cement plant. The estimated project cost is $ 221.36 million.
Rungta Mines (RML) is planning to invest $ 123 million for setting up a 1 MT cement plant
in Orissa.
In January 2010, Swiss cement company Holcim announced plans to invest $ 1 billion for
setting up 2-3 Greenfield manufacturing plants in India in the next five years. The expansion
will take the company's total cement-making capacity to 60 MTPA (million tonnes per
annum) from 50 MT PA currently.

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Initiatives and growth prospects
Fast-rising government expenditure on infrastructure sector in India has resulted in a higher
demand for cement in the country. In the same direction, participation of larger companies in
the sector has increased. The government's continued thrust on infrastructure will help the
key building material to maintain an annual growth of 9-10 per cent in 2010.
The Planning Commission for the formulation of the Tenth Five Year Plan constituted a
‘working group' for the development of the cement industry. It has identified the following
thrust areas for improving demand for cement:
 Further push to housing development programmers; and industrial SEZ, ports, harbors
 Promotion of concrete highways and roads
 Use of ready-mix concrete in large infrastructure projects.
 Metro and mass transit systems in New Delhi, Mumbai, Kolkata, Chennai, Bangalore,
Ahmadabad, Hyderabad and other metros
The major issue of interlinking of river projects is expected to double the consumption of
cement.
Government initiatives in the infrastructure sector, coupled with the housing sector boom and
urban development, continue being the main drivers of growth for the Indian cement
industry.
Increased infrastructure spending has been a key focus area. In the Union Budget 2010-11, $
37.4 billion has been provided for infrastructure development. The government has also
increased budgetary allocation for roads by 13 per cent to $ 4.3 billion.
An increased outflow in infrastructure sector, by the government as well as private builders,
has raised significantly demand for cement in India.

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PRODUCT PROFILE OF INDUSTRY
COMPOSITION OF CEMENT
Cement is a mixture of limestone, clay, silica and gypsum. It is a fine powder which when
mixed with water sets to a hard mass as a result of hydration of the constituent compounds. It
is the most commonly used construction material.
DIFFERENT TYPES OF CEMENT
There are different varieties of cement based on different compositions according to specific
end uses namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast
Furnace Slag Cement, White Cement and Specialized Cement. The basic difference lies in
the percentage of clinker used
Ordinary Portland cement (OPC)
OPC, popularly known as grey cement, has 95% clinker and 5% of gypsum and other
materials. It accounts for 70% of the total consumption. White cement is a variation of OPC
and is used for decorative purposes like rendering of walls, flooring etc. It contains a very
low proportion of iron oxide.
Portland Pozolona Cement (PPC)
PPC has 80% clinker, 15% Pozzolana and 5% gypsum and accounts for 18% of the total
cement consumption. Pozzolana has siliceous and aluminous materials that do not possess
cementing properties but develop these properties in the presence of water. It is cheaply

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manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient. It has a
lower heat of hydration, which helps in preventing cracks where large volumes are being cast.
Portland Blast Furnace Slag Cement (PBFSC)
PBFSC consists of 45% clinker, 50% blast furnace slag and 5% gypsum and accounts for
10% of the total cement consumed. It has a heat of hydration even lower than PPC and is
generally used in construction of dams and similar massive constructions.
White Cement
OPC: clinker using fuel oil (instead of coal) and with iron oxide content below 0.4% to
ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic value, in
tiles and for flooring. White cement is much more expensive than grey cement.
Specialized Cement
Oil Well Cement: is made from clinker with special additives to prevent any porosity. Rapid
Hardening Portland cement: It is similar to OPC, except that it is ground much finer, so that
on casting, the compressible strength increases rapidly. Water Proof Cement: OPC, with
small portion of calcium stearate or non -saponifibale oil to impart waterproofing properties.

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Innovation Potential
Continuous technological upgrading and assimilation of latest technology has been going on
in the cement industry. Presently 93 per cent of the total capacity in the industry is based on
modern and environment-friendly dry process technology and only seven per cent of the
capacity is based on old, wet and semi-dry process technology. There is tremendous scope for
waste heat recovery in cement plants and thereby reduces emission level.
One project for co-generation of power utilizing waste heat in an Indian cement plant is being
implemented with Japanese assistance under the Green Aid Plan.
The induction of advanced technology has helped the industry to conserve energy and fuel
and to save materials. International-level quality control units with modern labs have helped
the Indian companies to provide global products.
Ambitious modernization and expansion programmers are currently underway in the Indian
cement industry. Through adoption of modern technology and equipment, input substitution,
output modification, organizational changes as well as other process-specific measures India
is trying to increase output and improve efficiency.
Economic Policy
Controlling pollutions:
Over the last 30 years, the more energy-intensive wet process of cement production has been
virtually phased out. Looking at the past scenario and initiatives by both the government and
the private sector, this sector is expected to grow further. The GDP which is around 8 per
cent and expected to reach 11-12 per cent by 2012 is certainly a boost to this industry.

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Infrastructure development
The demand of cement industry depends on infrastructure facilities in the field of coal &
power supply and rail transportation for its sustainable development. Good number of large
infrastructure construction projects like Padma Bridge, Flyovers, and highways are on the
pipeline.
Industry and trade policy
Cement has traditionally not14 been among India’s major traded products. During 2008,
India was the 44th largest cement-trading nation in the world. However, increased focus on
infrastructure development in recent years has led to a splurge of construction activity in the
country, resulting in higher cement imports and hence trade. Trade in cement is also
underway with the neighboring countries and countries in Africa and West Asia. L&T (now a
part of Grasim), Gujarat Abuja Cements 13 Cement Manufacturers Association 14 During
2008, India was ranked 44 among the list of major cement trading nations. Ltd and Jaiprakash
Industries are the top exporters. The western region, due to its proximity to the coasts,
accounts for 92.4 per cent of total exports, of which Gujarat holds a share of 76 per cent.15
During the period from 2001 to 2008, India’s cement trade increased from US$ 4.1 million to
US$ 44.2 million, a CAGR of 40.3%. The increase in trade was led by rise in imports, which
increased, from US$ 0.3 million in 2001 to US$ 37.1 million in 2008, at a CAGR of 91.3%.
India’s cement exports on the other hand increased at a CAGR of 9.9%, from US$ 3.7 million
to US$ 7.2 million. China was India’s main source of cement imports, during 2008 with
imports worth US$ 13.9 million followed by Italy and Taiwan with imports worth US$ 13.5
million and US$ 2.5 million, respectively. India’s top five import sources together accounted
for close to 92% of India’s total cement imports during 2008.

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3). DEMAND ANALYSIS

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DEMAND DETERMINATION OF CEMENT INDUSTRY
India has become the second largest cement producing country in the world, the gap between
the largest producers. China and the second largest producer are quite wide. China produces
1400 million tonnes per year and India produces a mere 183 million tonnes.
It is noted that there is an interlinking relation between cement consumption and the
growth of economy. The country is on a high growth track and the focus now is on the
development of the infrastructure facilities such as, highways, ports, canals, bridges, power-
houses etc. The Committee has been given to understand that the performance of cement
industry has been commendable even during the global economic slowdown.
China besides being the largest producer of cement in the world is also the largest consumer
of cement in the world. It manufactures and consumes around 50% of global output. The
Commission also stated that the per capita consumption in China is around 1040 Kg, whereas
in India it is 178 Kg.
NCAER observed that in India, most of the infrastructure-related cement
consumption falls under the category of departmental and non-departmental enterprises,
which constituted about 21 per cent of total cement consumption during 2001-02.
Government and defense account for another 18 per cent, and housing for
about 42 per cent. As against this, according to the study, about 42 per cent of cement in
Japan goes to make buildings and another 40 per cent towards infrastructure-related
activities. Cement for making roads and bridges in Japan accounts for 10.5 per cent as
compared to an almost minuscule share in India. This means about seven million tonnes of
cement is used for making roads in Japan on an annual basis.

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Income:
Strong economic growth helps boost disposable income. This coupled with easy availability
of finance enables households to migrate from non pucca houses to urban pucca housing and
results in increase in demand for larger houses, thereby raising average size of dwelling units.
Thus it will also increase the demand of cement as it is the main component of building
houses.
Penetration:
The four broad segments of the commercial construction sector, retail, office space, hotels,
and civil structures such as hospitals and schools have been experiencing strong growth and
driving cement demand. From fiscal year ended 31 March to 2007 through to 2012, the
organized retail grew at a rate of approximately 20% largely due to huge under-penetration,
focus of existing retailers expanding their businesses and entrance of newcomers. The
industry is expected to grow at a healthy rate of 24% over the next five years. (Source:
CRISIL Research) Additionally, large global companies are setting up facilities throughout
the country. Construction of commercial complexes and office spaces have increased in large
cities, such as Mumbai, the National Capital Region (NCR), Chennai, Bengaluru, Pune and
Hyderabad. In the IT and IT enabled services (ITES) space as well, domestic and global IT
companies have made huge investments, which contributes to the growth in construction
activity and also increasing cement demand.
Replacement demand
The cement industry has been expanding on the back of increasing infrastructure activities
and demand from the housing sector. The Department of Industrial Policy and Promotion

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(DIPP), report says that cement and gypsum products attracted foreign direct investment
(FDI) worth Rs 13,370.32 crore (US$ 2.24 billion) between April 2000 and February 2014.
The housing segment accounts for a major portion of the total domestic demand for cement in
India. In the 12th Five Year Plan of the Government, there is a strong focus on infrastructure
development and the Government plans to increase investment in infrastructure to an amount
of US$ 1 trillion. The industry is expected to add a capacity of 150 MT during the Plan
period.
.
Some major initiatives of the Government to boost the cement industry are as follows:
 An expert appraisal committee under Ministry of Environment, Government of India,
has provided approval to India Cements to double its capacity and set up a 40
megawatt (MW) power plant at one of its facilities in Tamil Nadu. The proposed
expansion project will come up at Dalavoi in Ariyalur district.
 The Competition Commission of India (CCI) has approved the proposed acquisition
of cement plants of Jaypee Cement Corporation Ltd, comprising an integrated cement
unit at Sewagram and grinding unit at Wanakbori in Gujarat by Ultratech Cement Ltd.
 Giving impetus to green initiatives, Goa State Pollution Control Board (GSPCB) has
signed a memorandum of understanding (MoU) with Vasavadatta Cement, a company
with its plant in Karnataka. The cement manufacturer will use the plastic waste
collected from Goa as fuel for its manufacturing plant.
The cement industry in India is globally competitive as the industry continues to witness
positive trends such as cost control, continuous technology up gradation and increased
construction activities.

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Major cement manufacturers in India are also increasingly using alternate fuels, especially
bioenergy, to fire their kilns. This is not only helping to bring down production costs of
cement companies, but is also proving effective in reducing emissions.
Price:
Price factors in general when the price of factors namely labor and raw materials increases
the cost of production increases as a result the supply decreases.
In case of cement the main row material for is limestone if the price of limestone increases
the cost of production increases resulting in decreases supply.
Technology
Cement is a binding agent and is a key ingredient of the most used man-made material:
concrete. The demand for cement is strongly correlated to the rate of economic development.
Cement manufacturing is the third largest energy consuming and CO2 emitting sector, with
an estimated 1.9 Gt of CO2 emissions from thermal energy consumption and production
processes in 2006.1 If Best Available Technologies can be adopted in all cement plants,
global energy intensity can be reduced by 1.1 GJ/t-cement, from its current average value of
3.5 GJ/t-cement. This would result in CO2 savings of around 119 Mt.
Life cycle stage
The manufacture of clay building products is constantly improving. The clay brick and tile
industry is continually monitoring its energy usage which forms a significant part of total
production costs. Much work has already been done to decrease energy consumption and
consequently CO2 emissions in line with government guidelines. Firing gives our products
their exceptional performance, long life and durability and is an indispensable part of the
production process.

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Some products are designed to be energy efficient in use and there has been a significant
increase in thermal performance qualities of products over the past few years. Our objective
is to continue this trend in order to deliver efficient products that are manufactured with
careful energy usage, controlled emissions and minimal waste.

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4). MARKETING STRATEGY ANALYSIS

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MARKETING RESEARCH:
Market Size
Cement prices in India recorded a 6.7 per cent month-on-month growth in April 2017,
thereby indicating the probability of growth in volume and profitability of cement companies
in the quarter ending June 2017.
The housing sector is the biggest demand driver of cement, accounting for about 67 per cent
of the total consumption in India. The other major consumers of cement include infrastructure
at 13 per cent, commercial construction at 11 per cent and industrial construction at 9 per
cent.
The total capacity of the cement industry in India is 435 million tonnes (MT) and the growth
of cement industry is expected to be 6-7 per cent in 2017 because of the government’s focus
on infrastructural development. The industry is currently producing 280 MT for meetings its
domestic demand and 5 MT for exports requirement. The country's per capita consumption
stands at around 225 kg.
The Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country. A total of 188
large cement plants together account for 97 per cent of the total installed capacity in the
country, with 365 small plants account for the rest. Of these large cement plants, 77 are
located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.

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CEMENT SECTOR: THE KEYISSUES
Cement industry currently faces multiple challenges both internal and external. On one hand,
demand is moderating especially in the North region and muted to negative growth in
Southern region, industry is also facing higher input and fuel costs.
Cement industry currently faces multiple challenges both internal and external. On one hand,
demand is moderating especially in the North region and muted to negative growth in
Southern region, industry is also facing higher input and fuel costs.
The situation was also aggravated due to hike in diesel prices, making transport cost (freight)
dearer. With low demand in over supply regime, industry is unable to pass on the higher costs
to end user thereby keeping their margin under pressure or voluntarily opt to keep volume
low. Given the backdrop of Government thrust to accelerate economic growth, industry
expectations are high to reduce excise duty on cement which in our view is unlikely.
With country's GDP pegged to grow more than annually going forward, cement industry is
likely to grow in double digit over long term and outlook for demand remains positive.
With a view to have inclusive growth of all sectors, emphasis would be to create demand for
real estate sector with focus on affordable housing, government led higher infra spending in
the form of higher fund allocation and incentive for public private partnership (PPP) to keep
robust demand for cement.

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BUSINESS STRATEGIES FOR THE INDIAN CEMENT INDUSTRY
i) Consolidation and Globalization:
Large cement players in India will use the acquisition route to enhance capacity and market
share. It is clear that smaller plants will not survive in the long term. The top five players will
hold 70-80 % of capacities and market in the next decade. There is an expectation that more
global players would come into India as they would like to get a foothold in the market as the
demand will propel in the emerging economies.
ii) Process Automation:
The significant nature of changes to the Information technology area and the manner in which
information will be processed will be drastic over the next 10-15 years. This will have some
impact on the cement industry. Higher levels of technology, its seamlessness and
functionalities that have wider acceptance and usage will also bring down operating costs
considerably.
iii) Technology:
Use of technology in marketing will assume more changes with increase in both
communication and information technological changes. Concepts will emerge such as phone-
a–cement, or portraying a 3-D animation of the house prior to its construction in a library,
providing responses to customers through mobile technology.

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iv) Cement Economics:
Costs have a significant bearing on the performance of an industry and cement is no
exception. The uptrend in costs is likely to continue, although the increase in input costs is
expected to be neutralized by rise in prices owing to higher demand.
v) Corporate Governance and Branding:
Corporate governance is as a set of systems, processes and principles, which ensure that a
company is governed in the best interest of all stakeholders. The business environment has
been changing over the years with increasing expectations from key stakeholders including
regulatory bodies. Recent stock exchange regulations also require listed companies to
enhance corporate governance and business practices and improved disclosure norms.
vi) R&D and Innovation:
Companies do not have much of application-oriented research and development efforts but
this will become critical for future success. To a large extent, this is related to creating the
application and customer of the future and understanding customer needs based on the
emerging environment. Companies will need to create niche products and develop the market
for such products by providing solution-based offerings to the customer.

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TRENDS IN THE CEMENT INDUSTRY:
The world consumption of Cement is expected to increase for Cement in the future will have
developing countries account about 84% of it. India being the 11th largest economy of the
world will play a major role in creating demand for Cement. The cement market grew by
10% in 2009-10 owing to the Real Estate boom in the country. The buoyancy in the industry
has also been fuelled by the government’s increased infrastructural development. Since the
first five-year plan by the government of India, the demand for Cement has increased to meet
the growing infrastructural needs of the country The 11th five-year plan by the Government
of India, involves re-constructing various heritage sites, urban development and slum-
reconstructions apart from developing roads and highways.
The metro rail projects in Mumbai, Bangalore and Hyderabad and the expansion phase in
Delhi drive cement demand in this segment. Airports modernization across major cities will
also expand demand. Projects involving the hosting of the Commonwealth Games in 2010
and similar large-scale sports activities are driving demand. The growth drives are:
• Reduction in the average size of the household due to increased nuclearization family.
• Tax SOPs.
• Reduction in the age of the house owner.
• Availability and growing penetration of housing finance and a favorable tax regime.

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• Increased per capita income to about 3560 million tons by 2020. The world’s demand
CUSTOMER SERVICE:
Cement companies have been creating differentiated engagement with its customers through
its support and services. The services address the needs of the companies’ three main
customer segments – Individual Home Builders, Masons and Contractors, and Professionals
Users and influencers are empowered and educated through onsite guidance regarding right
construction practices, training and certification of unskilled/semi-skilled manpower,
knowledge transfer on advancement of materials and technology, developing simple tools and
methods for improving construction practices, customer and influencer engagement
programmes and other value added services.
The companies are creating sustainable impact beyond its business too. A separate team of
experienced graduate civil engineers are engaged in creating a sustainable impact utilising the
companies’ products and services. These groups conduct regular seminars to create
awareness about good materials and good construction practices. Various companies’
engineers also provide practical training to small contractors and masons to improve their
skill and practices.
Cement companies’ support and services are different and tailor-made to suit the
requirements of each of its three main customer segments: Individual Home
Builders, Masons and Contractors, and Architects and engineers.

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Segmentation and positioning
Segmentation:
Segmentation is categorization of buyers into suitable classes so that the strategic
options are customized and made appropriate to each specific class of buyers. From
exploratory survey, on basis of cement distribution, the customers are categorized as
Trade customers and Non-Trade customers.
Trade customer: Dealer/retailer/sub dealer/whole seller who sell cement to the retail
customer and they are the direct customer of cement company as they lift cement
though authorized CFA of company. Trade customer include retail customer can buy
cement from a retail outlet (Hardware shop) from his area. People who build their
own houses or mason/ contractors/Engineer/Architect who build housing
infrastructure and opt to buy cement through distribution channel are the retail
customers
Individual home builders: These are the trade customer or retail customer who
purchases cement from cement retail store and build private house for own
accommodation.
Non trade (Industrial) customers: A customer who has a registered company and
buys large quantities of cement can buy cement directly from sales points.
Government is an industrial customer. Big builders and promoters fall into this
segment.

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Generally 5 types of non trade customer segmentation:
[1] Builders and promoters: Are private companies specialized in developing
housing or commercial complexes to sell them on the market. E.g. PS Group, Fort
group, Merlin Group, Riddhi Siddhi Group…
[2] Big infrastructure contractors: are corporate companies that handle main
civil construction projects for the government or private customers: polar plants,
water waste, airports, major bridges. E.g. Jusco, L&T ECC, Simplex Infrastructure,
Ramky Infrastructure …
[3] Small projects contractors: are small public or private contractors which
work essentially for government infrastructure projects at smaller scale: roads,
schools, irrigation etc. E.g. Block Government Office.
[4] Manufacturers: are industrial manufacturers which use cement as a raw
material for their production: ready-mix, AC sheets, or concrete blocks
manufacturers. E.g. Ramco, RDC Concrete, Rigid bricks, RMC Ready-mix…
[5] Expanding companies: Are private companies which are building new
industrial units to increase their production. The consume cement for their own
purpose. E.g. Tata metaliks, Ramsarup, Utkarsh Galva…

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Positioning:
As far as the retail customer is concerned – cement is a push market industry – so whoever is
able to push its product first to the customer, will be able to successfully sell it.
The reason being – at the end Cement is a commodity. A layman doesn’t differentiate
between different brands. The lead sales influencer is the mason and the shopkeeper.
He goes to buy Cement only when he immediately needs it, and will buy whichever is
immediately available. So it is important for a manufacturer that he is able to successfully
push his product on the shelf of shopkeeper (ship it on time) and incentivise the shopkeeper
enough (discount and commission) so that he sells product.
Distribution channels:
The distribution of cement to the end user from the manufacturer is a major cost factor in the
landed cost of cement at the user end.

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Till 80s cement was available only as a commodity, and the production and distribution of
cement was controlled by the Government. One had to apply to a district collector to get
cement allotted for a job. It is only during the late 80s that cement was decontrolled and as a
result many players entered into cement production, triggering competition into the cement
industry.
It has been almost 28 years since cement has been decontrolled. Since then industry has
witnessed high level of competition which has forced all the players to create their brand
image in the minds of the customer so they can fetch premium price over competitors. But
slowly all the companies have started replicating the activities undertaken by any pioneer
company and so the companies were forced to control their cost in order to ensure reasonable
profits during the lean period, i.e., when the demand is low and prices are under pressure. It is
important to note the recent development of selling cement through online shops like
Snapdeal, etc.
Companies invariably hire carry and forwarding agents (CFAs) to transport cement to their
own or dealers´ warehouses, which is either done via road or railways. From CFAs or
warehouses, the cement is then transported to dealers/distributors and further to sub dealers
who finally sell it to the end user. The physical ownership of goods every time does not get
transferred. In the other case, dealers and sub dealers take order from buyers and place it to
the companies, distributors coordinate and monitor for the timely dispatch of said orders,
transportation of goods and final delivery and in return get their commission.
Distributor network in cement industry is highly dominating, and companies are compelled to
hire the services as they rarely have any rapport or contact with the end consumer of their
product. Apart from this, distributors have storage facilities, which enable them to control the
supply chain. Therefore it becomes an important link in the business chain.
Three major factors affect the cost of cement. These include: logistic (20 to 22 per cent),
excise and VAT of which excise and VAT are Government duties and thus cannot be

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controlled by the manufacturer. So only cost that is in the hands of manufacturer is the
logistic cost, and in order to reduce the logistic cost, the companies try to sell their production
in the nearby areas.
Moreover as the cement plant has to be installed nearby limestone deposits, plants of various
companies are located very near to each other. This creates an intense competition in the
nearby areas as all the companies try to sell their product with minimal logistic cost. Largely
this is applicable to all the cement plants but as the big companies have huge production
capacity at the single plant they have low cost of production and so they can afford to
distribute their product at far off places at a slightly higher price. But the small players have
limited production capacity so they try to increase their profits by saving on the logistic cost
by selling in a limited area, and this technique of saving on logistic cost is shrinking their area
of operation. This can be experienced in the states of Telangana and Andhra Pradesh. Thus
intense competition is experienced in local areas as big players have to sell some part of their
production in local area to get higher realisation and the local companies have to sell in local
areas as they cannot afford to sell in far-off places due to increasing logistic cost. Moreover
the transportation cost always has an increasing trend, so every company prefers to sell their
maximum possible production in the nearby area which increases competition to a great
extent.
Today we can say, in all the developed countries, cement is still treated as a commodity
whereas in India it is somewhere between commodity and brand. In short, for a retail buyer,
companies sell it as a brand whereas for institutional buyers it is sold as a commodity. The
dealer is extremely important for both buyer and manufacturer.
The concept of a two-tier distribution chain comprising of manufacturers and dealers
functions very well. It is a perfect and simple set-up, in the sense that manufacturers sale
cement to dealers. From there on, the onus is on the dealers who established contact with
builders, government and institutional buyers, and sold to retailers.

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Company invariably hires c & f agents or transport cements to own or government
warehouses either via roadway or railways. In case of exports, cement reaches the nearest
port via roadways or railways and is then transferred to the importing country.
Domestically, from c & f agents or warehouses the cement is transported to the
dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may
or may not be physical ownership of goods. In the second case, dealers and sub dealers take
order from buyers and place it to the companies, coordinate and monitor the timely dispatch
of said orders, transportation of goods and final delivery. Distributor network in cement
industry is highly dominating and companies are compelled to hire as they do not really have
that rapport and touch with the end consumer of their product. Apart, from this, the
distributors have storage facilities as well which help control well in the entire supply chain
as they are the ones who bring orders and therefore are directly responsible for the business
that a manufacturer would do.
However, with the mushrooming of large plants engaging in cut-throat competition to grab a
bite of the market pie, Indian cement companies are now beginning to adopt innovative
strategies that have revolutionized the way cement is sold in India. What was predominantly
sold in bags is now being sold in bulk, albeit in different quantities. Also, with a view to
adding value to their products, manufacturers have now started selling concrete instead of
cement.
PRICING:
Cost Structure of Cement Company

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*Please note that the above rates are indicative and can change if the Market or the product is
different.
So If A Cement Bag of Rs. 350 Rs is sold
 Indirect Taxes levied by the government form almost Rs. 75/ bag – Not to mention
there are other taxes which are levied during the manufacturing stage such as Entry
Tax, Cement Cess, Royalty etc
 Dealer Margins typically are around Rs. 40/Bag (Rs. 25 as discounts and and Rs 15 as
mark-up to customer)
 Handling of Finished Goods costs almost Rs. 50/Bag
 Manufacturing Cost is almost Rs. 155/Bag
 In the end, a manufacturer earns Rs. 30/Bag on a Cement Bag which has MRP of 350
On studying the prices of cement of one company across 6 different districts of Maharashtra a
slight variation in Prices were observed which can be observed through the following table.

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DISTRICT PRICE in Rs/50 kg
Pune 279
Nagpur 289
Solapur 284
Ahmed Nagar 276
Mumbai 276
Aurangabad 282
This variation in prices can be observed all over India. The major factors contributing
towards the variation in prices are the regional transportation costs, the variations in regional
supply and demand, difference in the intensity of competition amongst local retailers and
distributors.
Apart from this the prices keep on varying throughout the year depending upon the demand
and supply dynamics, the costs of raw material used and other factors.
PROMOTION:
1) Print Media: advertisement in the newspaper and Magazines. By regular period.
2) Out Door Media: advertisement on poster, holdings, wall painting, T.V, radio and
internet by regular period.

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ROLE OF SALES PERSONAL IN PROMOTION
The major customer base which buys cement in India even today is the household owner.
Though the end customer the purchase is influenced by opinion leaders viz. contractors,
masons, architects, etc. Thus, to attract those cements companies’ sales teams organize
seminars for contractors and masons.
They also interact with retailers and distributors who are the channel members representing
the companies to the end customer. They act as the connecting link. They also act as a
channel between the company and contractors. The retailers or distributors play an important
part in influencing the end customer.
DISCOUNTS:
Companies are providing discounts in case of bulk purchases. The profit margins are already
low in cement industry thus discounting is not practiced in case of small quantities.
QUALITY AND TECHNOLOGY:
Technologies Adopted by Indian Cement Industry
Generally cement manufacturing process involves following stages:
1. Quarrying raw materials
2. Crushing
3. Pre-homogenization and raw meal grinding
4. Pre-heating
5. Precalcining
6. Clinker production in the rotary kiln
7. Cooling and storing

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8. Blending
9. Cement grinding
10. Storing in the cement silo
Coal is the main fuel for manufacture of cement in India, due to high cost and inadequate
availability of oil and gas. The consumption of coal in dry process system ranges from 20-
25% of clinker production. That means 0.20-0.25 t of coal is consumed to produce one tonne
of clinker. The cement industry consumes about 10 million tonnes of coal annually. Since
coalfields like Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL)
supply poor quality of coal, the industry has to blend high-grade coal with it; imported coal
attracts a customs duty.
While cement production has traditionally been focused on OPC, composite and blast furnace
slag cements have been developed and are now a central part of the cement-type portfolio of
producers. At the same time Portland limestone and Portland pozzolanic cements have gained
importance, especially in regions where slag or fly-ash are not available. In the global context
of cost reduction and CO2 constraints, cement producers strive to lower the clinker content in
their cements. Limits are given by cement performance, so that product quality of the final
concrete may not be impaired.
Requirements for new technologies
All cements have to fulfil the requirements on durability, strength development, early
strength development, workability, cost and environment. Depending on the cement
composition, these criteria can be fulfilled to different degrees. It is in the hands of the
producer to optimise the different cement types with respect to these categories. The
consumer will choose the appropriate cement type for the dedicated construction. Especially
for new cements to be developed in the future, durability is one of the essential requirements.

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The question of carbonation resistance, resistance against chloride penetration, only to give a
few examples, must be complied with. In temperate climates durability aspects to a high
degree are also determined by frost-thaw resistance.
LOGISTICS MANAGEMENT:
Logistics forms the most critical and large component of the input cost for cement,
accounting to nearly 35 per cent of the total cement sales.
Cement Companies have become prime sector for the economic development of the country.
Implementation of supply chain management practices can result strengthening and running
company for long duration. A Supply chain Management is compressed of different process.
There are different types of process that supply chain management consists namely,
Customer Relationship Management
Customer Service Management
Demand Management
Order Fulfilment Management Manufacturing
Flow Management Supplier Relationship

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Management
Product Development and Commercialization Returns
Management
Coastal shipping could be the major medium of transportation. There are two critical
challenges in front of the cement industry- the volatile fuel costs and protecting the
environment. Given India's unique demography, coastal shipping and inland waterway is the
best and the most eco-friendly medium of transportation as compared to road or rail.
Waterways emerge to be preferred options primarily due to the sub-optimal condition of our
roads across the country.
Another important factor is the constant hike in fuel prices leading to frequent escalation of
transport charges. Speaking about rail as a medium, the lack of integrated rail connectivity
from sourcing locations to plants and then from plants to last mile distribution, is a
considerable challenge for creating efficiencies in logistics of cement in India. This mode will
be crucial in its ability to leverage the opportunity, given that it is expected that India needs
about US$ 1 trillion from 2012-13 to 2016-17 to fund infrastructure such as ports, airports
and highways to boost growth, thereby promising a good outlook for the industry. At All
cargo Logistics, we have already seen many of our coastal shipping customers preferring
transportation of commodities like cement through waterways, to optimise their investment in
these though economic conditions and also for the timely movement of their cargo.

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Major players in India:
ACC Cement:
Establishment – 1936
Type - Public company
Listed in - BSE & NSE
Headquarters - Mumbai, India
Employees - 10,000
ACC Limited is India's foremost manufacturer of cement and ready mixed concrete with a
countrywide network of factories and marketing offices. Established in 1936, ACC has been
a pioneer and trend-setter in cement and concrete technology. ACC's brand name is
synonymous with cement and enjoys a high level of equity in the Indian market.Among the
first companies in India to include commitment to environment protection as a corporate
objective, ACC has won several prizes and accolades for environment friendly measures
taken at its plants and mines. The company has also been felicitated for its acts of good
corporate citizenship.
Gujarat Ambuja Cements:
Gujarat Ambuja Cement or Ambuja Cement is by Indians for its unmatched strength, quality
and reasonable price. This Cement is among preferred brand of cement in Western parts of
country. Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, is one of
the leading cement companies in India and is known for its hassle-free, home-building
solutions. Its unique products tailor-made for Indian climatic conditions, sustainable

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operations and initiatives that advance the company's philosophy of contributing to the larger
good of the society have made it the most trusted brand in Indian cement industry.
Binani Cement Limited:
Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL),
representing the Braj Binani Group. The cement business started operations in 1997, in Sirohi
District, Rajasthan.
Quality, Strength, Reliability, Performance, and Consistency are words that are synonymous
with Binani Cement. In ‘cement’ matters, these qualities make Binani Cement the preferred
choice for engineers, builders, and contractors
Birla Corporation Limited:
The Cement Division of Birla Corporation Limited has 10 plants at seven locations, Satna &
Maihar (Madhya Pradesh), Raebareli & Kundanganj (Uttar Pradesh), Chanderia (Rajasthan),
Butibori (Maharashtra) and Durgapur (West Bengal).
The cement is marketed under the brand names of MP Birla Cement PERFECT,
ULTIMATE, UNIQUE, CHETAK, PSC, SAMRAT, MULTICEM & CONCRECEM,
bringing the product under the common brand of M P Birla Cement.
The Company has acquired 100% shares of Reliance Cement Company Private Limited
(Reliance Cement), a subsidiary of Reliance Infrastructure Limited (RIL). After this
acquisition, Reliance Cement has become a wholly-owned material subsidiary of Birla
Corporation Limited. The entire cement business of RIL has been acquired for an Enterprise
Value of Rs. 4,800 crores. This acquisition provides Birla Corporation Limited with the
ownership of high-quality assets, taking its total capacity from 10 MTPA to 15.5 MTPA.

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UltraTech Cement Ltd:
UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete
(RMC) and white cement in India. It is also one of the leading cement producers globally.
UltraTech as a brand embodies 'strength', 'reliability' and 'innovation'. Together, these
attributes inspire engineers to stretch the limits of their imagination to create homes,
buildings and structures that define the new India.
The company has an installed capacity of 93 Million Tonnes Per Annum (MTPA) of grey
cement. UltraTech Cement has 18 integrated plants, 1 clinkerization plant, 25 grinding units
and 7 bulk terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri
Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the
demand in countries around the Indian Ocean and the Middle East.
List of Cement Companies
1. ACC Limited
2. Adhunik Cement Ltd
3. Aditi Industries
5. Alsthom Industries Limited
6. Ambuja Cement Ltd
7. Anjani Portland Cement Ltd
8. Asian Concretes Cement Ltd
9. Bagalkot Cement & Inds.Ltd
10. Bharti Cement Corpn. Pvt. Ltd
11. Bhavya Cement Ltd
12. Binani Cement Ltd
13. Birla Corporation Ltd

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14. Calcom Cement India Ltd
15. Cement Corporation of India Ltd
16. Cement Manufacturing Co. Ltd
17. Century Textiles and Industries Ltd
18. Chalukiya Cements
19. Chettinad Cement Corpn. Ltd
20. Creative Housewares Pvt. Ltd
21. Dalmia Cement (Bharat) Ltd
22. Deccan Cement Ltd
23. Emami Cement Ltd.
24. Goldstone Cements Ltd
25. Green Valliey Industries Limited
26. Gujarat Sidhee Cement Ltd
27. H K Cement Industries Private Limited
28. Heidelberg Cement India Ltd
29. Hemadri Cement Ltd
30. Hemawati Cement Industries
31. India Cements Ltd
32. J & K Cement Corporation
33. J.K. Cement Ltd
34. J.S.W. Cement Ltd
35. Jagdamba Industries Limited
36. Jaiprakash Associates Ltd
37. Jammu & Kashmir Cements Ltd
38. Janta Cement Industries

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39. Jay Shree Kripa Cement Pvt. Ltd.
40. Jindal Shakti Cement
41. JK Lakshmi Cement Ltd
42. K. J. S. Cement Ltd
43. K.C.P. Ltd
44. Kakatiya Cement & Sugar Industries Ltd
45. Kalyanpur Cements Ltd
46. Kamdhenu Cement Ltd
47. Kesoram Cement
48. Khyber Industries (P) Ltd
49. Lafarge India (P) Ltd
50. Madras Cements Ltd
51. Malabar Cements Ltd
52. Mancherial Cement Ltd
53. Mangalam Cement Ltd
54. Mawmluh Cherra Cements Ltd
55. Meghalaya Cements Ltd.
56. MPL Cement And Sponge Private Ltd
57. My Home Industries Private Limited
58. OCL India Ltd
59. Orient Cement
60. Panyam Cement & Mineral Industries Ltd.
61. Parasakti Cement Ltd
62. Penna Cement Industries Ltd
63. Prism Cement Ltd.

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64. Purbanchal Cement Ltd
65. R.V.R Exports And Imports
66. Rain Cements Ltd
67. Reliance Cement Company Private Limited
68. RNB Cements (P) Ltd
69. S.A.L. Steel Limited
70. Sagar Cement Ltd
71. Sanghi Cement Ltd
72. Sanghi Industries Ltd
73. Saurashtra Cement Ltd
74. Shiva Industries
75. Shivalik Cement Industries
76. Shree Cement Ltd
77. Shree Digvijay Cement Co. Ltd
78. Shree Jagjothi Cement Ltd
79. Shri Lakshmi Industries
80. Shri Ram Industries
81. Shriram Cement Works
82. Sree Jayajothi Cements Pvt. Ltd.
83. Srikalahasthi pipes limited
84. Sunrise Cement Industries
85. SVS Cement Products
86. Tamil Nadu Cements Corpn. Ltd.
87. Tata chemicals Ltd
88. UltraTech Cement Ltd

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89. Uma Cement Industries
90. Vadraj Cement Ltd.
91. Viket Sagar Cement
92. Wonder Cement Ltd
93. Zuari Cement Ltd
MARKET SHARE OF VARIOUS FIRMS:
Although the Indian cement industry has some multinational cement giants, like Holcim and
Lafarge, which have interests such as ACC, Ambuja Cement and Lafarge Birla Cement, the
Indian cement industry is broadly home-grown. Ultratech Cement, the country's largest firm
in terms of cement capacity, holds around 22% of the domestic market, with ACC (50%-
owned by Holcim) and Ambuja (50%-owned by Holcim) having 15% and 13% shares
respectively.
Many of the remaining dozen top players are Indian and are (in order of diminishing market
share); Binani Cement (10%), Birla Corporation (7%), Shree Cements (6%), Century Textiles
and Industries (5%), Madras Cements (5%), Lafarge (5%), JK cement (4%) and Jaiprakash
cement (4%).
Between them the top 12 cement firms have around 70% of the domestic market. 6 Around
100 smaller players produce and grind cement on a wide range of scales but are often
confined to small areas.

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5). FINANCIAL ANALYSIS

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RATIO ANALYSIS:
Ratio Analysis includes various ratios like Profitability Ratio, leverage ratio, and many more
ratios. Ratio Analysis is defined as the systematic use of ratio to interpret the financial
statements. So the strengths and weaknesses of a firm, as well as its historical performance
and current financial condition can be determined. Ratios reflect a quantitative relationship
which helps to form quantitative judgments. Ratios are the tools which helps determining
company’s performance over the years. Ratio analysis is based on line items in financial
statements like the balance sheet, income statement and cash flow statement. Ratios are also
compared across different companies in the same sector to see how they stack up, and to get
an idea of comparative valuations. Ratio analysis is a cornerstone of fundamental analysis.
Ratios are classified into four categories. Each category shows different aspect of the
company’s performance. The ratios are:
1] PROFITABILITY RATIOS
A class of financial metrics that are used to assess a business's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specific period of time.
Some examples of profitability ratios are profit margin, return on assets and return on equity.
Operating Profit Margin
The operating profit margin ratio is a measure of overall operating efficiency, incorporating
all of the expenses of ordinary, daily business activity. The calculation is: EBIT/Net Sales=

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Year 2012 2013 2014 2015 2016
Ambuja 25.25 17.87 19.32 16.18 18.15
ACC
19.33 14.58 12.84 13.03 12.69
Ultratech
23.16 18.82 18.29 19.14 20.79
Birla
15.09 8.50 9.39 8.71 11.09
Interpretation
Thus, from the above all data in the year 2013 all companies margin ratio highly decreasing
compare to the year 2012. It increased 18.15, 20.79, 11.09 in the year 2016. Only ACC ltd
profit decreased by the 12.69 in the year 2016.
Gross Profit Margin
The ratio looks at how well a company controls the cost of its inventory and the
manufacturing of its products. The larger the gross profit margin, the better for the company.
The calculation is: Gross Profit/Net Sales = ____%.
Year 2012 2013 2014 2015 2016

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Ambuja 19.44 12.49 14.22 9.57 18.98
ACC
14.41 9.44 8.09 7.50 7.27
Ultratech
18.48 13.63 13.34 13.80 15.49
Birla
11.08 4.10 4.61 4.16 6.69
Þ Interpretation
The Gross Profit Margin from above all data all companies ratio continuously decreasing
from the year 2012 to 2016. It decreased due to increasing cost of inventory by the company.
Net Profit Margin
The net profit margin measures profitability after consideration of all expenses including
taxes, interest, and depreciation. The calculation is: Net Income/Net
Sales = _____%.
Year 2012 2013 2014 2015 2016
Ambuja 13.20 13.91 14.99 8.53 10.46
ACC
5.39 5.01 9.95 9.81 9.34

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Ultratech
13.15 10.57 8.78 9.02 10.99
Birla
10.36 4.30 5.46 4.80 6.39
Interpretation
The net profit margin continually increasing from the year 2012 to 2016 of companies
Ambuja and Acc due to heavy amount of accumulated depreciation. And due to small amount
of accumulated depreciation Birla’s profit margin deceased.
2] LENERAGE ANALYSIS:
Any ratio used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations. There
are several different ratios, but the main factors looked at include debt, equity, assets and
interest expenses.
The debt equity ratio shows the extent to which long-term debt, like bonds and mortgages are
used for the firm's permanent financing. The calculation for long-term debt to total
capitalization is as follows:

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Long-term Debt/Long-term debt + Stockholder's Equity = ___%
Year 2012 2013 2014 2015 2016
Ambuja 0.00 0.00 0.00 0.00 0.00
ACC
0.01 - -- -- --
Ultratech
0.26 0.26 0.24 0.12 0.18
Binani
0.00 0.00 0.00 0.00 0.00
Birla
0.37 0.36 0.42 0.29 0.58
Interest coverage ratio:
EBIT/interest
Year 2012 2013 2014 2015 2016
Ambuja 13.77 23.88 28.88 13.77 19.71
ACC
16.59 24.75 14.72 14.92 12.69
Ultratech
19.24 9.70 6.27 7.05 7.63

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Birla
6.41 2.91 3.88 13.68 2.65
3] PROFITIBLITY ANALYSIS:
Gross Profit ratio:
The ratio looks at how well a company controls the cost of its inventory and the
manufacturing of its products. The larger the gross profit margin, the better for the company.
The calculation is: Gross Profit/Net Sales = ____%.
Year 2012 2013 2014 2015 2016
Ambuja 19.44 12.49 14.22 9.57 18.98
ACC
14.41 9.44 8.09 7.50 7.27
Ultratech
18.48 13.63 13.34 13.18 15.49
Birla
11.08 4.10 4.61 4.16 6.69
Interpretation
The Gross Profit Margin from above all data all companies ratio continuously decreasing
from the year 2012 to 2016. It decreased due to increasing cost of inventory by the company.

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Net Profit ratio:
The net profit margin measures profitability after consideration of all expenses including
taxes, interest, and depreciation. The calculation is: Net Income/Net
Sales = _____%.
Year 2012 2013 2014 2015 2016
Ambuja 13.20 13.91 14.99 8.53 10.46
ACC
5.39 5.01 9.95 9.81 9.34
Ultratech
13.15 10.57 8.78 9.02 10.99
Birla
10.36 4.30 5.46 4.80 6.39
Interpretation:
The net profit margin continually increasing from the year 2012 to 2016 of companies
Ambuja and Acc due to heavy amount of accumulated depreciation. And due to small amount
of accumulated depreciation Birla’s profit margin deceased.
Operating Profit ratio:
The operating profit margin ratio is a measure of overall operating efficiency, incorporating
all of the expenses of ordinary, daily business activity. The calculation is: EBIT/Net Sales=
_____

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Year 2012 2013 2014 2015 2016
Ambuja 25.25 17.87 19.32 16.18 18.15
ACC
19.33 14.58 12.84 13.03 12.69
Ultratech
23.16 18.82 18.29 19.14 20.79
Birla
15.09 8.50 9.39 8.71 11.09
Interpretation:
Thus, from the above all data in the year 2013 all companies margin ratio highly decreasing
compare to the year 2012. It increased 18.15, 20.79, 11.09 in the year 2016. Only ACC ltd
profit decreased by the 12.69 in the year 2016.
Rate of retention ratio:
Year 2012 2013 2014 2015 2016
Ambuja 57.22 57.02 48.23 46.19 49.84
ACC
59.67 48.60 45.37 57.15 50.53

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Ultratech
90.71 88.50 87.74 88.02 90.13
Birla
80.03 67.17 75.47 75.54 79.08
4] DU-PONT ANALYSIS:
By doing DuPont Analysis one can evaluate power of a firm. It shows the combined effect of
three aspects – operating efficiency, financing efficiency and retention. It is a product of the
assets turnover, gross profit margin and operating leverage.
Return on Capital Employed (ROCE) measures a company’s profitability from its overall
operations by calculating the return generated on the total capital invested in the business (i.e.
equity + debt). Return on Equity (ROE) or Return on Net worth (RONW) measures the
amount of profit which the company generates on money invested by the equity shareholders.
In short, ROE draws attention to the return generated by the shareholders on their investment
in the business. Together these ratios can be used in comparing the profitability of the
company with other companies in the same industry.
ROCE (RONA): Return on capital employed
Year 2012 2013 2014 2015 2016
Ambuja
27.99 17.30 19.11 14.98 13.03

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ACC
21.52 17.40 15.13 10.19 10.26
Ultratech
20.48 14.08 13.53 13.93 14.95
Binani
12.38 7.67 9.32 4.51 1.50
Birla
11.48 6.91 7.87 8.22 7.32
ROE (RONW): Return on equity
Year 2012 2013 2014 2015 2016
Ambuja
14.70 13.51 14.76 7.87 7.26
ACC
14.56 14.41 14.55 7.09 7.04
Ultratech
17.43 12.54 10.68 10.48 10.7
Binani
6.83 6.16 1.27 0.46 0 .68
Birla
11.04 5.25 6.70 5.80 6.74

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5] EPS:
Earnings per share= PAT- preference dividend / no. of equity shares
Year 2012 2013 2014 2015 2016
Ambuja 5.20 8.37 9.66 5.20 4.89
ACC
56.52 58.36 62.23 31.51 32.08
Ultratech
96.87 78.21 73.44 79.25 95.74
Binani
4.62 4.18 6.62 4.07 5.52
Birla
35.04 16.85 22.78 21.78 27.79
Interpretation:
Companies profit of year 2016 decrees in comparison to the year 2012.
6] DPS:
Dividend paid to ordinary shareholder / no. of equity shareholder
Year 2012 2013 2014 2015 2016

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Ambuja 2.80 2.80 5.00 3.60 3.60
ACC
30.00 30.00 34.00 17.00 17.00
Ultratech
9.00 9.00 9.00 9.50 10.00
Binani
3.00 3.00 3.00 3.00 0.00
Birla
7.00 6.00 6.00 6.00 6.50
Interpretation:
Almost all Companies used to paid same dividend to shareholders in each year.
7] PE ANALYSIS:
Price earnings:
Market price per share / earning per share
Year 2012 2013 2014 2015 2016
Ambuja 24.0 21.8 27.7 21.1 38.8
ACC
25.29 18.99 22.49 43.15 41.41
Ultratech
19.29 27.99 39.16 37.36 41.68

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Binani
25.79 23.72 11.41 22.48 11.24
Birla
6.97 17.1 17.85 16.63 26.58

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6). INDUSTRY ANALYSIS

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PESTLE ANALYSIS
Pestel analysis is a useful tool for understanding the big picture of operating and Takes
advantage of opportunities. Pest analysis includes political, environmental, social and
technological factors which affects both the companies as well as Industry.
1] POLITICAL
SEZ Act to improve Infrastructural Development
SEZ is special economic zone. The govt. has formulated the policy of special economic zone
in India to develop industrial growth in particular area. SEZs are proposed as duty free area
for the point of trade, operations, duty and tariffs. SEZ units are independent and
incorporated having their own
infrastructureand support services. Infrastructure development solelydepends on the cement
industry, so political environment of India is in favour of cement industry.
Government participation
Cement price is basically depends on the price of raw material such as power tariff, freight,
cess on limestone and railwaytariff. The Government is controlling all these prices, on the
other hand govt. is consuming a huge amount of cement in the country. Many state govt. is
making attractive policies (such as fiscal incentive in the form of sales tax exemption) to
attract the investment within the state. Haryana is providing freeze
onpower tariff for 5 years, on the other side Gujarat providesrelease from electric duty.
Political stability
Countries with political stability attain a higher growth,compare to political instable country.

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The political stability in India is good. The political instability came in the picture last
20years ago, so political stability provides a good platform toIndian cement companies to
develop the policies to come up with flying colours.
The price of cement is primarily controlled by the coal rates, power tariffs, and railway
Tariffs, freight, royalty and cess on limestone. Interestingly, government controls all of These
prices. Government is also one of the biggest consumers of the cement in the Country. Most
state governments, in order to attract investments in their respective states, offer fiscal
incentives in the form of sales tax exemptions/deferrals. States like Haryana offer a freeze on
power tariff for 5 years, while Gujarat offers exemption from electric duty.
2] ECONOMIC
The Indian economy is the fourth largest economy of the world on the basis of Purchasing
Power Parity (PPP)* The factors like Huge manpower base, strong macro-
economic fundamentals and diversified resource base are the reasons that many other
countries is attracted towards the investment opportunities and business.
Purchasing power parity (PPP) is a theory of long-term equilibrium exchange based on
relative price levels of two countries.
Growth in Construction Activity improving GDP Growth
Currently, Indian cement industry is growing at higher rate with the help of many
infrastructure and housing projects. Indian cement industry is contributing to India’s GDP to
grow with faster rate.
Increase in Per Capita Income

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In India per capita income is increasing with a good pace, which
will result in increase in housing development, as the disposable income will be high and
standard of living will be high
Rate hikes unlikely to slow down growth
Cement prices are increasing from past year at rapid pace. In2004, cement prices were rs.130-
150. Cement price in current scenario is around Rs.230-250, so rate hike will unlikely to
slowdown the growth.
FDI Liberalization to enhance industry growth
In 1989, deregulation took place in Indian industry, which helped the industry to grow. In
India, there is 100% foreigndirect investment is allowed in cement industry. The firstforeign
company to enter in Indian market was Lafarge cement. As foreign investment is permitted, it
will boost the cement industry in India.
The industry is on the boom, with a lot of government infrastructure and housing projects
under construction. The export segment of the industry is expected to grow Again on account
of various infrastructure projects that are being taken up all over the world and numerous
outstanding cement plants coming up in near future in the Country.
3] SOCIAL
Shifting consumption pattern to fuel industry growth
There is a drastic change in the consumption pattern of cement. In past; consumer purchases
the cement as commodity, now
itis changed from commodity to brands. Due to marketinginitiative of companies, brand came
into the picture. NowIndian consumer goes only for branded cement like, Jaypeecement,
Ultratech etc.

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Creation of direct and indirect jobs each year
With a population of more than 100 billion people, the main problem is to provide job to each
and every one. The Indian cement industry is providing job opportunities to many people.
Lifestyle and standard of living
Standard of living in India is increasing, as the per capitaincome is increasing. The increase
in lifestyle and standard of living will affect the demand of housing sector in India. This will
lead to grow the cement industry.
The cement industry in India consists of both the organized sector and the unorganized
sector. Organized sector comprises of the well-known cement Manufacturing companies
while the main players of the unorganized sector are the regional and local cement-producing
units in various states across the country. Indian consumers prefer buying branded cement
like ULTRATECH, JAYPEE CEMENT, LAFARGE CEMENT etc. A population of more
than 100 billion people, it is expected that cement industry will create another 25 lakhs jobs
in the next 4-5 years.
4] TECHNOLOGICAL
The technology up gradation has helped the cement industry
toincrease the capacity of plant, decline in thermal energyconsumption, decline in electrical
energy consumption, decline in cost of production of cement, decline in energy cost
throughco-processing and reduction in the CO2 emission throughblended cement and energy
conservation.Currently, all the cement plants are using dry process withmost effectual polluti
on control measure to accomplish theterms provided by the Pollution Control Authorities.
New technology adopted by industry
•Advanced control systems with soft sensors

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•All fans (including HT) with variable speed drives, preferably VFD’s*
• Integrated computerised quality control systems
• Mines planning
• Bulk analyser
• Raw mix design and blending
5] ENVIROMENTAL
Easing environment norms
Entrepreneurs in India are required to acquire environmentalclearance from the Ministry of E
nvironment. Recentlyintroduced Environmental Management Systems (EMS)
certification is a mechanism by which cement companies canacquire the label
of environmentally sound enterprises and also derive the benefits of improved
performance. The EMS does not lay down specific environmental performance criteria but
requires an organisation to formulate policies and objectives, taking into account information
about significant environmental effects for continual improvement’s 14000 environmental
management standards have been established to help companies:
•Minimize those operations which adversely affect the environment (air, water or land)
•Comply with applicable laws and regulations
Continually improve in the above The major objective of the ISO 14000 series of norms is
"to promote more effective and efficient environmental management in organizations and to
provide useful and usable tools - ones that are cost effective, system-based, flexible
andreflect the best organizations and the best organizationalpractices available for gathering, i

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nterpreting and communicating environmentally relevant
information"Acts which concern cement industry from the environmentalviewpoint are:
•Air (Prevention & Control of Pollution) Act, 1986
• The Environmental (Protection) Act 1986
6] LEGAL:
In India, theDepartment of Industrial Policy and Promotion (DIPP), under the Ministry, is the
nodal agency for the development of cement industries, that
is,it is involved in monitoring their performance at regularintervals and suggesting suitable
policy incentives, as per
therequirement. The Department is responsible for formulationand implementation of promot
ional and developmentalmeasures for growth of entire industrial sector in general
andof some selected industries like cement, light engineering,leather, rubber, light machine to
ols, etc. in particular. It isinvolved in framing and administering overall industrial policy and
foreign direct investment (FDI) policy as well as promoting FDI inflow into the country. It
plays an active role in investment promotion through dissemination of information on
investmentclimate and opportunities in India as well as by advisingprospective investors
about various policies and procedures. Some of the rules and orders, administered by DIPP,
relating to the cement industry are:-
•Cement Control Order, 1967
•Cement Cess Rule, 1993
•Cement (Quality Control) Order, 1995

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PORTER’S FIVE FORCES MODEL FOR CEMENT INDUSTRY:
BARGAINING POWER OF
SUPPLIERS: HIGH
GOI exercise excessive control on
coal and power prices & supply. Govt.
authorities also control the
transportation sector.
BARGAINING POWER OF
BUYERS: LOW
In the recent past the cement industry is
witnessing major change in purchase
quantity. Now the share of small
purchases i.e. retail purchases have been
rising whereas that of bulk purchases
has declined. Moreover with industry
operating at above 90% level increases
the bargaining power of manufacturers.
RIVALRY AMONG THE FIRMS: HIGH
Large numbers of players, overcapacity, High
degree of product homogeneity, high storage cost
and high exist barriers, creates intense rivalry
among the firms.
THREAT OF SUBSTITUTE: LOW
Use of bitumen in road construction and
engineering plastic in building creates
some concern for the industry.
BARRIERS TO ENTRY: MEDIUM
TO HIGH
High capital investment, distribution
network and oversupplied market deters
new entrants. However technology and
manpower are easily available.

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SWOT ANALYSIS:
To plan marketing and management strategies for businesses, it is important to perform a
situations analysis. One such analysis, a SWOT analysis, examines "strengths, weaknesses,
opportunities and threats" within a particular business or field. The cement industry is an
example of a field for which a SWOT analysis would enhance marketing and management
strategies.
Strengths:
The cement industry has many strengths to be considered. Cement is, literally, the building
block of the construction industry. Almost every building constructed relies on cement for its
foundation. The cement business is a $10 billion industry, measured by annual cement
shipments. There is also a strong reputation behind the cement industry. Cement is a solid
material and consumers rarely have complaints about the product. Regional distribution
plants have also made cement widely available to any type of buyer.
High selling prices and profitability levels due to supply Shortage, Relatively low energy
costs, Tax-free environment, Taxes and restrictions set on imported cement, Natural hedge
from outside competition arising from high transportation costs, Capital-intensive industry
with long construction periods, creating natural barrier to new entrants.
Weaknesses:
The cement industry is not without its drawbacks. The cement industry relies on construction
jobs to create a profit. But the cement industry heavily relies on weather. About two-thirds of
cement production takes place between May and October. Cement producers often use the

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winter months to produce and stockpile cement, to meet demand. Another weakness is the
cost of transport; the cost of transporting cement is high and this keeps cement from being
profitable over long distances. In other words, shipping cement costs more than the profit
from selling it.
High oil prices, significantly increasing production and transportation costs, Proximity to
lower cost export markets in Indian subcontinent, Egypt and Turkey, increasing competition
in both local and export markets, Fragmented regional industry with no economies of scale,
Non-optimal capital structure driven by the relatively low debt levels maintained by most
companies in the region.
Opportunities:
The cement industries has opportunities as well. One such opportunity is the cement
industry's efficiency. The cement industry has recently streamlined its production efforts,
using dry manufacturing instead of wet, which is heavier and more time-consuming. The
cement industry has also invested about $6 billion in expansion efforts to meet unmet cement
needs. Projections show that by 2012, the cement industry will have 25 percent more
production capabilities.
Construction boom in all GCC countries that is expected to continue in the short to medium
term, Reconstruction in Iraq opens a window for dumping possible future excess capacities,
A number of M&A transactions might take place in the near Future, Possible entry of
multinational companies, increasing efficiency and opening new export routes.

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Threats:
Several capacity upgrades are planned, raising the possibility of oversupply situation,,
Increased competition in local markets post joining WTO and/or opening up for foreign
investments, Further hikes in oil prices could negatively affect companies ‘profitability if
they cannot pass increase in production costs on to customers.
The cement industry SWOT analysis indicates that the industry has been greatly affected by
the economic downturn. However, with investments, the industry believes it can rebuild and
increase production. This will lessen the need for foreign imports. The industry has become
very renationalized because of the high costs of transporting cement. However, the regional
market caters to all types of jobs, from residential to commercial projects, just within one
region. And the shortened profitability period of cement has allowed cement producers to
stretch production across the year, to avoid overwork from May to December.

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7). FUTURISTIC SCENARIOOF THE INDUSRTY

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Future Outlook
 The slackening economy will take at least one or two years to bounce back to its
earlier level. This would, as a thumb rule, apply to the cement industry also. Since
India has been emerging as one of the fastest growing economies in the world, the
future outlook for cement looks to be bright, provided government formulates
facilitating growth oriented policies so that our per capita cement consumption
matches with at least with some of the developing economies.
 Future Business scenario of cement industry:
 The main raw materials for cement are limestone, coal, and electricity. Limestone is
used for quarrying, on which the cement companies have to pay a royalty to the state
governments. On coal, apart from the GST, there will be a levy of clean energy cess
which is not available as a credit. So, as these two factors will continue to be outside
the GST, it has to be absorbed as a cost of the cement production.
 Managing Expectations
 If GST is levied on electricity, it is going to increase the cost. The service tax paid on
the transportation cost etc., if not made available at the dealers’ level, adds to the cost

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of the cement production and unless the rates of GST on cement is kept at or below 12
percent, it is going to have an adverse impact as far as the infrastructure industry is
concerned. Essentially, the benefit of the costs needs to be transferred down the value
chain to the dealers and end consumers.
 HR Imperatives
 Operationally, the GST does not impact the cement business and therefore has little or
no impact on the core functions.
 The number of transactions and taxation steps is likely to reduce thus requiring minor
restructuring of the finance function.
 Upgrading of the ERP would be required in the foreseeable future for which the talent
shortage may arise as the taxes impact most industries thus increasing the demand for
these professionals.
 The logistics costs are likely to reduce. The number of warehouses required will
reduce, bringing down costs, which may be transferred to the end consumer in the
current scenario of higher demand and plant utilization. However, the impact on the
logistics function within the company will be negligible. The nature of the logistics
jobs in most Cement companies is such that the volume of work will have minimal
impact, i.e., a person handling multiple warehouses now will handle a single
warehouse but without much change in the job profiles.

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8). CONCLUSIONS

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CONCLUSION
 Cement Industry has progressed in India since last decade and the demand for the
Cement has increased due to infrastructure development, housing and commercial
needs of the economy.
 We expect that in the presence of global competitors and a global market, Indian
companies would be able to acquire most of the share of this market following sound
business strata-gems as summarized below:
The problem of up scaling and surviving competition with multinational companies
calls for Consolidation and Globalization amongst all Indian cement players.
The companies have to get a higher share of sales in the market. This would require
multi-product entities. Indian Companies need to focus on products other than just
cement like RMC (Ready Mix Concrete), and research new building materials that
will create a niche for them in the market.
To serve as a truly global company, the operations of a company can’t just be
restricted to India.

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9). BIBLIOGRAPHY
• http://profit.ndtv.com/stock/ambuja-cements-ltd_ambujacem
• http://profit.ndtv.com/stock/ambuja-cements-ltd_ambujacem/financials-ratio
• http://profit.ndtv.com/stock/ambuja-cements-ltd_ambujacem/financials
• http://profit.ndtv.com/stock/ambuja-cements-ltd_ambujacem/financials-profit-loss
• http://www.moneycontrol.com/financials/ambujacements/ratios/AC18
• http://www.moneycontrol.com/financials/ambujacements/balance-
sheetVI/AC18#AC18
• http://www.moneycontrol.com/financials/ambujacements/profit-lossVI/AC18#AC18
• http://www.moneycontrol.com/annual-report/ambujacements/directors-
report/AC18#AC18
• http://www.moneycontrol.com/financials/ambujacements/ratiosVI/AC18#AC18
• https://www.sanasecurities.com/ambuja-cement-equity-research/
• https://www.researchandmarkets.com/reports/1314662/ambuja_cements_ltd_ambujac
em_financial_and
• https://www.scribd.com/document/273816790/THE-FINANCIAL-ANALYSIS-OF-
AMBUJA-CEMENT-LIMITED-doc
• https://www.marketing91.com/swot-analysis-ambuja-cements/
• https://www.ibef.org/industry/cement-india.aspx
• https://www.investing.com/equities/ambuja-cements-ratios
• Media Reports, Press releases, Union Budget 2017-18, Edelweiss Securities Ltd
Notes: # – ‘India Cement’ report by Nomura Research dated October 13, 2015
• www.acclimited.com
• http://www.ambujacementfoundation.org/
• Facebook page:
• http://www.facebook.com/pages/Ambuja-Cement- Foundation/107287509345492
• www.acclimited.com

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