saurabhfinal-141209091925-conversion-gate01 (1).pptx

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

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.

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).

EVOLUTION OF INDIAN CEMENT
INDUSTRY
• A Kolkata based company started manufacturing cement in1889.
• In 1914, Indian Cement Company Ltd was established in Porbandar.
• In 1927, Concrete Association of India was set up to createpublic
awareness on the utility of cement.
• In 1956, price and distribution system of cement industrycame
under government control.
• After the economic reform in 1980’s the government controlon
cement industry was liberalized.
• A great increase in demand of cement, has resulted India tobecome
2nd largest cement producer in the world afterChina.

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

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.

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%

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 highlyenergy
intensive.
 At present 93% of cement production in India is based on modern
and environment-friendly dry process technology and only 7% of the
capacity is based on old wet and semi-dry process technology.
 The cost of Cement is 29% energy; 27% raw materials; 32% labour
and 12% depreciation

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).

FLOW CHART OF CEMENT MANUFACTURING

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

KEY FEATURES OF CEMENT INDUSTRY
 India's cement production has increased at a
compound annual growth rate (CAGR) of 9.7
per cent to reach 272 million tonnes (MT) 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.
https://www.equitymaster.com

ECONOMIC STATUS OF THE CEMENT
INDUSTRY
 Growth Rate
 Investments
 Exports
 FDI and GDP

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.
• Indian Cement Industry comprises of 185 large and
more than 365 mini cement plants.

PRODUCTION AND PRODUCTION CAPACITY OF
CEMENT IN INDIA

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.

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. India has an
immense potential to tap markets of Middle East
and South East Asia

FDI AND CONTRIBUTION TO THE GDP
• The industry occupies an important place in the
national economy because of its strong linkages to
other sectors such as construction, transportation ,
coal and power.
• 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.

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.
•Coal availability and quality is also affecting the
production.

OVERVIEW OF INDIAN CEMENT
INDUSTRIES
Large Cement Plants
 Cement plants: 185
 Installed capacity: 339.5
mtpa
 Cement production: 168.3
mtpa*
Mini And White CementPlants
 Cement plants: 365
 Installed capacity: 11.1
mtpa
 Cement production: 6.0
mtpa

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

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
300
72 65
0
500
1000
1500
2000
2500
2013
2013
2058
373
66 64
0
500
1000
1500
2000
2500
2013
2013
http://www.ibef.org/industry/cement-india.aspx

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

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)

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 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 cement
TECHNOLOGY

PORTER’S FIVE FORCES FRAMEWORK

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
 Growth at approx. CAGR of 9% in last 5 years
 Growing Domestic cement consumption at approx.
CAGR of 8% in last 3 years
 Highly Capital Incentive so difficult for small entrant
 Not much restriction by govt.

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.

OPPORTUNITIES:
 High Mortgage Penetration -Low Interest Rates
 Easy loan availability for housing finance
 Increased investments in Infrastructure
 Increased govt. outlay on BHARATNIRMAN,
GOLDEN QUADRILATERAL, and BRTS etc.

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

OBJECTIVES OF STUDY
 To study the process of manufacturing and effect of
introducing of new technology.

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

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