The document provides an overview of the cement industry in India, with a focus on Ultratech Cement Limited. It discusses that India is the second largest cement producer globally. The key drivers of cement demand are the real estate sector, infrastructure projects, and industry expansion. Ultratech Cement is the largest cement company in India with an annual capacity of over 90 million tons. The report also analyzes Ultratech Cement's goals, market share, strengths, weaknesses and provides a forecast of future cement demand in India.

1. COMPREHENSIVE PROJECT REPORT
ON
A STUDY ON CEMENT INDUSTRY WITH SPECIAL
REFERENCE TO ULTRATECH CEMENT LIMITED &
STATUS OF CEMENT IN INDIA
• Presented by
Sagar Motwani 167780592088
Selvin Doshi 167780592021

2. Over view of cement industry
• India, being the second largest cement producer in the world after
China with a total capacity of 151.2 Million Tones (MT), has got a
huge Cement Industry.
• The cement industry in India is dominated by around 20 companies,
which account for almost 70% of the total cement production in
India.
• 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.

3. PRODUCT PROFILE OF INDUSTRY
• Ordinary Portland cement (OPC)
• Portland Pozolona Cement (PPC)
• Portland Blast Furnace Slag Cement (PBFSC)
• White Cement
• Specialized Cement
Innovation Potential
• Continuous technological upgrading and assimilation of latest
technology has been going on in the cement industry.
• Adoption of modern technology and equipment

4. Economic Policy
• Controlling pollutions:
• Infrastructure development
INDUSTRY AND TRADE POLICY
• Increased focus on infrastructure development led to higher
construction resulting in higher cement imports and trade.
• Trade with neighboring countries .

5. Major Players in INDIA
• ACC cement
• Gujarat Ambuja cement
• Binani cement
• Ultratech cement
• Birla cement
NUMBER OF CEMENT COMPANIES
• Around 91 Cement Companies
MARKET SHARE OF VARIOUS COMPANIES:
• Between them the top 12 cement firms have around 70% of the
domestic market.

6. Market share of players in cement industry
in India
• Ultratech cement 22%
• Binani cement 10%
• ACC 15% Birla corporation 7%
• Ambuja 13%
• Shree cement 6%
• Century industry 5%
• Others 37%

7. About the company Ultra Tech Cement
o Flagship company of Aditya Birla Group
o It’s a division of Grasim Industries
o India's biggest Cement company
o India’s largest exporter of Cement clinker
o Installed Capacity: 93 million Tons per annum
o Establishments in India, Sri Lanka, UAE, Bahrain
o In India, 11 integrated plants, 1 white cement
plant, 15 grinding units, 4 terminals

8. VISION AND VALUES
Vision
oTo be a premium global conglomerate, with a clear focus on each of the
businesses.
Mission
oTo deliver superior value to the customers, shareholders, employees and society
at large.
Values
oIntegrity : Acting and taking decisions in a manner that is fair and honest.
oCommitment : On the foundation of Integrity, doing all that is needed to
deliver value to all stakeholders.
oPassion : A voluntary, spontaneous and relentless pursuit of goals and objectives
with the highest level of energy and enthusiasm.
oSeamlessness : Thinking and working together across functional groups,
hierarchies, businesses and geographies.
oSpeed : Responding to internal and external customers with a sense of urgency.

9. CURRENT GOALS AND OBJECTIVES
oIts goal is to become a US$ 65 billion Group from US$ 30 billion. Ultra Tech Cement is
the country’s largest exporter
of cement. The export markets span countries around the Indian Ocean, Africa, Europe
and the Middle East. And it wants sustainability in the position where it is today.
Ultra Tech Cement has a significant presence in the Middle East with the acquisition
of Star Cement by Ultra Tech Cement Middle East Investments Ltd in 2010. Star Cement
is a leading manufacturer of cement in this region with an installed capacity of 3 MTPA.
It has 1 clinkerisation plant and 2 grinding units in the UAE and 1 grinding unit each in
Bahrain and Bangladesh.
Ultra Tech also has a bulk terminal in Sri Lanka under Ultra Tech Cement Lanka (Pvt.)
(Ltd.).

10. Porter five model

11. Ultra Tech Cements
Parent Company Grasim Industries
Category Construction Materials-Cement
Sector Real Estate and Constructions
Tagline/ Slogan The Engineer’s Choice
USP High quality cement(Strong and Reliable)
STP
Segment
Tier I/II/III cities, Public Sector/Private Sector,
Customer/Builder
Target Group
Customers and Builders in both Public and private
sector in all tier cities
Positioning High strength and Reliable cement
SWOT Analysis of Ultra Tech Cements with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

12. SWOT Analysis
Strengths
1. It is India’s biggest cement company.
2. It is the largest exporter of cement clinkers.
3. It is a part of the prestigious Aditya Birla Group that helps the brand.
4. It has an annual capacity of 60+ millions tones.
5. Ultra Tech accounts to about 30% of the total Indian Exports.
6. Most of the plants have ISO 9001, ISO 14001 and OHSAS 18001 certification.
7. Ultra Tech Cement Limited has integrated plants, white cement plant and
many grinding units in India.
Weaknesses
1. Although UltraTech provides various other construction products and
services, but the brand is associated with Cement only, so it has to work on
positioning the brand as a construction materials brand, which can be achieved
by implementing branding activities.
2. It is not operating /exporting in US market which is a huge market for
Cement industry.
3. Brand awareness of Ultratech is lesser as compared to global players.
Opportunities
1. It should enter the US market by Mergers and acquisitions.
2. It should do worldwide branding activities that would help the brand grow
as a whole.
Threats
1. It faces strong competition from global players.
2. Mergers and acquisitions involves high risk, so it should be careful while
entering new market.

13. Research methodology
• Secondary Research; Describing its approach, the sample selection,
the data and its collection procedure.
Research Objectives
• To know the current issues of cement industry
• To study about the Ultra Tech cement (Company Research)
• To know the current status of demand & supply in India.

14. • Data collection
• As our research is somehow an explorative and a descriptive in nature
so we have collected data by interview of departmental person and
from the secondary sources.

15. TOTAL CONSUMTION OF CEMENT IN INDIA
Interpretation
We have taken 2011 as a base year to find average growth rate. As infrastructure sector is continuously growing in India,
demand of cement is also increasing. As total consumption of cement is increasing in India year by year, growth rate of cement
has also increased. Recently, average growth rate of cement sector is 15.96%. So, it indicates positive sign for cement sector.
With increase in total consumption of cement, growth rate has also increased since last 5 years. From above calculation, we
have come to know average growth rate of cement sector i.e 15.96%.
Year Total Growth Rate Average Growth
Consumption (Based On 2011- Rate
(In MT) 2012)
2011-2012 216 Nil
2012-2013 230.50 6.4%
15.96%2013-2014 248.20 14.90%
2014-2015 255.80 18.42%
2015-2016 270.30 25.13%
2016-2017 282.79 30.90%

16. • The Questions Asked to Wonder Cement’s Executive, Mr.Krunal Patel, were both subjective and open ended
which he answered in the following manner.
• What is the UNIQUE SELLING POINT OF WONDER CEMENT? Ans. QUALITY AND SERVICE
• Wonder Cement’s brand image? Ans. It is an everyday brand and not a
niche Brand.
• Would being a niche brand help boost its growth?
Yes No Ans. Yes.
• Who are your target customers? Ans. Currently Dealers and As the production and sales
volumes of a company increase, the target steadfastly shifts to the retailers and end users.
• Post GST scenario?
Positive Negative Ans. Positive
• Does performing Corporate Social Responsibility Help boost Customer Demand?
Yes No Ans. Yes.
• What kind of CSR have you undertaken? Ans. Aanganwadi (Women Empowerment
Programme) Swacch Jal Sabka Haq (Clean Water is the right of
everyone)
Saath7 Cricket Mahotsav

17. 1) What is the UNIQUE SELLING POINT OF Ultra Tech CEMENT?
Ans. Reliability & Quality
1) Ultra-Tech Cement’s brand image?
Ans. Highly Trusted amongst all groups and a Reliable Brand.
1) Would being a niche brand help boost its growth?
Yes No Ans. No
1) Who are your target customers Ans. End Users
It is currently No.1 in manufacturing and selling of Cement in India.
1) Post GST scenario?
Positive Negative Ans. Positive
1) Does performing Corporate Social Responsibility Help boost Customer Demand?
Yes No Ans. Yes.
1) What kind of CSR have you undertaken?
Ans. The main focus areas for CSR undertakings includes Health Care, Education, Safe drinking water and sanitation,
Infrastructure, Watershed Management and Environmental protection. The Company’s CSR activities undertaken are
concentrated in 407 villages, in proximity to its 22 Units, across the country.

18. DEMAND FORECAST FOR NEXT 5 YEARS
Year Demand Forecast (In MT)
with average growth rate
2018-2019 243.89
2019-2020 304.11
2020-2021 379.2
2021-2022 472.82
2022-2023 589.56
Interpretation
With the help of average growth rate , we have forecasted demand of cement in India for next 5 years, which
come to 243.89, 304.11, 379.2, 472.82, 589.56 respectively.

19. SUPPLY-DEMAND GAP IN CEMENT INDUSTRY
Interpretation
From the above calculation, we can say that supply-demand gap of cement in India is continuously increasing year by
year. So, there is a shortage of cement in India. This is one of the important factors for rise in price of cement.
Year Supply Demand Supply-Demand
(In MT) (In MT) Gap (In MT)
2011-2012 216 243.89 27.89
2012-2013 230.5 304.11 73.61
2013-2014 248.20 379.2 131
2014-2015 255.20 472.82 217.62
2015-2016 270.30 589.56 319.26

20. DEMAND-SUPPLY MATRIX WITH CAPACITY UTILIZATION
Interpretation
Capacity utilization of
cement industry is
increasing year by
year. So, it indicates
good sign for a
country.
PARTICULARS 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Supply (a) 216 230.50 248.20 255.80 270.30
Demand (b) 243.89 304.11 379.2 472.82 589.56
Difference 27.89
(c)=(b)-(a) 73.61 131 217.62 319.26
Growth Rate NA 163 77 66 46
(Y-O-Y) (In %) (d)
Capacity Utilization 112.9 131.9 152.7 184.8 218.11
(e)=(b)/(a)
All India 238.1 246.2 240.4 244.6 248.1
average prices
(INR/50 kg bag)

21. RESEARCH FINDINGS
 Due To Increase In Total Consumption Of Cement, Growth Rate Of Cement Is Also Increasing. Current Average
Growth Rate Is 15.96%
 With the help of average growth rate and past data, we have forecasted demand of cement for next 5 years.
Graph shows the increasing trend in demand.
 With the help of constant supply and forecasted demand for next 5 years, we have calculated supply-demand
gap. The graph shows that gap is increasing year by year.
 Capacity utilization of cement industry is increasing year by year. So, it indicates good sign for an industry.

22. INDUSTRY FINDINGS
• The Industry has been facing a chronic problem of insufficient availability of the main
fuel coal, driving the manufacturers to resort to use of alternatives at steep cost.
• Taxes and Government levies on cement are high compared to countries in Asia pacific
region.
• Cement Industry, which was branded as the highest polluter of environment, now meets
the pollution standards, and no longer a polluter today.
• Exports Cement/Clinker to around 30 countries across the globe and earns precious
foreign exchange.
• High Govt. levies and inadequate infrastructure facilities at ports and border points make
Indian cement uncompetitive in the global market.
• Housing sector is expected to remain the largest cement consumer in coming years. With
a large percentage of Indian population being below the age of 25, the construction
activity is expected to make a significant contribution in the context of growing housing
needs, development of roads and other infrastructure, urbanization, etc.
• Reduction in custom duty of Gypsum and Pet coke will have a very negligible impact on
the Cost structure of cement companies.