The cement industry in India is the second largest producer of cement globally. It has seen steady growth over the past few decades as the government has invested heavily in infrastructure projects. The major players in the industry include ACC, Ambuja, Ultratech, and others. While the industry contributes significantly to GDP and employment, it faces issues like high transportation costs and dependence on fossil fuels which impact prices. The future of the industry remains strong driven by continued government spending on housing and infrastructure development.

1. CEMENT INDUSTRY IN INDIA
Presented by.
Saurabh Singh
MBA (SEM I)

2. CONTENTS
 Introduction.
 Evolution of Indian cement industry.
 Bodies promoting industrial development.
 Types and manufacturing.
 Leading cement manufacturing industries in India.
 Economic status of cement industry.
 Issues concerning the cement industry.
 Effect of cement manufacturing on environment.
 PEST analysis.
 PORTAL’S five foces.
 SWOT analysis.
 Objectives of study.
 Research methodology.
 References.

3. INTRODUCTION
 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 bridges,
roads, water treatment facilities, schools and
hospitals.
 India is the world's second largest producer of
cement after China with industry capacity of over
200 million tonnes (MT).

4. EVOLUTION OF INDIAN CEMENT
INDUSTRY
• A Kolkata based company started manufacturing cement in
1889.
• In 1914, Indian Cement Company Ltd was established in
Porbandar.
• In 1927, Concrete Association of India was set up to create
public awareness on the utility of cement.
• In 1956, price and distribution system of cement industry
came under government control.
• After the economic reform in 1980’s the government control
on cement industry was liberalized.

5. BODIES PROMOTING INDUSTRIAL
DEVELOPMENT
 National Council for Cement and Building
Materials.
 Indian Concrete Institute.

6. TYPES OF CEMENT
 Ordinary Portland Cement (OPC).
 Portland Pozzolana Cement (PPC).
 Portland Blast Furnace Slag Cement (PBFS).
 Oil Well Cement.
 Rapid Hardening.
 Sulphate Resisting Portland Cement.
 White Cement etc.

7. PERCENTAGE CONTENTS OF CEMENTS
1.Ordinarily Portland Cement
 Clinker - 90.50%
 Gypsum - 4.00%
 Fly ash - 5.50%
2.Portland Pozzolana Cement
 Clinker - 66%
 Gypsum- 4%
 Fly ash - 30%
3.Portland Blast Furnace Slug Cement
 Clinker - 70%
 Gypsum- 6%
 Slag - 24%

8. CEMENT MANUFACTURING
 Cement is made out of limestone, shale, clay mined out
of quarry close to the plant. The raw material is crushed,
and then heated at temperature in excess of 1000 degree
Celsius in rotating kiln to become clinker. Clinker is then
mixed with gypsum and ground to a fine powder to
produce final grade of cement.
 The technology is a continuous process and is highly
energy intensive.
 The cost of Cement is 29% energy; 27% raw materials;
32% labour and 12% depreciation

9. TYPES MANUFACTURING PROCESS
There are three types of manufacturing process is
used to produce cement:-
 Dry process (96.3% used).
 Wet process (3.5% used).
 Semi dry process (0.2% used).

10. FLOW CHART OF CEMENT MANUFACTURING

14. MAJOR PLAYERS IN THE INDIAN
CEMENT INDUSTRY
Company Production capacity
(In million tonnes)
plants
ACC 30.04 14
Ambuja 27.00 13
Ultratech 48.75 22
Lafarge India Pvt. Ltd. 7.75 04
India Cements 15.33 09
JK Group 07.47 04
Jaypee Group 24.50 14
Shree Cement Ltd. 13.50 06
Madras Cements 14.88 08
Birla Corp. 06.46 07
Source : Labour and Industrial Chronical, Survey of Cement Industry &
Directory 2012 : 3rd Edition

15. KEY FEATURES OF CEMENT INDUSTRY
 India's cement production has increased at a
compound annual growth rate (CAGR) of 9.7
per cent during FY 06-13.
 The government plans to spend US$ 1 trillion on
infrastructure in the 12th five year plan period
(2012-17).
 Concrete is the second most consumed material after
water, with nearly three tones used annually for each
person on the planet.
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16. ECONOMIC STATUS OF THE CEMENT
INDUSTRY
 Growth Rate
 Investments
 Exports
 FDI and GDP

17. GROWTH RATE
• India is the world’s second largest producer of
cement with total capacity of 370 million tonnes as
of financial year 2012-13.and expected to reach
550 million tonnes in 2020.
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18. PRODUCTION AND PRODUCTION CAPACITY OF
CEMENT IN INDIA

19. INVESTMENTS
• Cement and gypsum products attracted FDI worth
US$ 2.23 billion between April 2000 and June 2014,
according to the Department of Industrial Policy and
Promotion.
• Jaypee Associates plans to invest US$ 640 million
to increase its cement capacity.
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20. EXPORTS
• During 2007-08, the export of cement from India
touched the 2.16 million tonnes mark. However
during 2008-09, the cement export from India stood
at 1.46 million tonnes.
• In spite of seeing fall during 2008-09, 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.
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21. FDI AND CONTRIBUTION TO THE GDP
• 100% FDI is permitted in the cement industry.
• It contributes approximately 1.3% of GDP and the
industry is employing over 0.14 million people in
2013.
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22. ISSUES CONCERNING THE CEMENT
INDUSTRY
•High Transportation Cost is affecting the competitiveness
of the cement industry Road is the preferred mode for
transportation or distances less than 250km. However,
industry is heavily dependant on roads for longer distances
too as the railway infrastructure is not adequate.
•Cement industry is highly capital intensive industry and
nearly 55-60% of the inputs are controlled by the
government.

23. MAJOR CEMENT DEMAND DRIVERS
64%
17%
13%
6%
housing sector
infrastructure
commercial
&institutional
industrial
http://www.ibef.org/industry/cement-india.aspx

24. CONSUMER IN THE WORLD LED BY THE ENORMOUS GROWTH IN THE
INFRASTRUCTURE AND CONSTRUCTION SECTOR FOR THE LAST TWO
DECADES
Top Cement Consumers in
2013 (million tonnes)
Top Cement Producer in 2013
(million tonnes)
2048
72 65
0
500
1000
1500
2000
2500
2013
2013
300
2058
373
66 64
0
500
1000
1500
2000
2500
2013
2013
http://www.ibef.org/industry/cement-india.aspx

25. EFFECT OF CEMENT MANUFACTURING ON
ENVIRONMENT
Carbon di oxide emmision:-
 limestone scrubber:
CaCO3 + SO3 +2H2O —> CaSO4 + 2H2O + CO2 ↑
 lime scrubber:
Ca(OH)2 + SO3 + H2O —> CaSO4 + 2H2O
 CO2 Emissions from Calcination:
CaCO3 + heat (to about 9508ᵒC)──> CaO + CO2

26. NITROGEN OXIDE EMISSIONS FROM CLINKER
MANUFACTURING:-
High-temperature combustion of fuels in the kiln line releases
nitrogen oxides (NOx), with the nitrogen being mainly
derived from the atmosphere but also to some degree from the
fuels themselves; a minor contribution also comes from some
types of raw materials
 O + N2 ──> NO + N and
 O2 + N ──> NO + O (unstable)

27. PEST ANALYSIS
• Coal rates, power tariffs, railway freight plays a very important
factor in the price determination, interestingly, government
control all of these prices
• Govt is one of the biggest consumers of the cement
POLITICAL
• Future of cement industry is very strong
• A lot of government infrastructure and housing projects are
under construction
ECONOMIC
• Indian consumers prefer buying branded cement like
LAFARGE, JAYPEE,BIRLA etc
• Industry will create 25 lakhs jobs in coming years
SOCIAL
• Govt is acquiring new technology from Japan
• Emphasis is on creating highly energy efficient and
environment friendly technology to produce cementTECHNOLOGY

28. PORTER’S FIVE FORCES FRAMEWORK

29. SWOT ANALYSIS
Strengths:
 Second largest in the world in terms of capacity
 Low cost of production: due to the easy availability of
raw materials and cheap labour
 Highly Capital Incentive so difficult for small entrant.
 Not much restriction by govt.

30. WEAKNESS:-
 High Oil Prices, Cost of Power increase production cost.
 Supply exceeds Production lead to competition in price.
 Low Quality as compared to international standard but
improving.

31. OPPORTUNITIES:
 Easy loan availability for housing finance
 Increased investments in Infrastructure
 Increased govt. outlay on BHARATNIRMAN,
GOLDEN QUADRILATERAL, and BRTS(bus rapid
transit) etc.

32. THREATS:-
 Further Hike in Oil Prices.
 Use of plastic engineering in construction.
 Subprime market loss may affect.

33. REFERENCES
 Building material and construction- B.C.PUNAMIA
 Websites.
 www.google.com .
 http://www.ibef.org.
 http://en.wikipedia.org/wiki/Cement.s
 https://www.equitymaster.com

34. THANK YOU….