Presentation on Cement Industry

1. CEMENT INDUSTRY
• Cement industry

2. PRESENTED BY
• INTRODUCTION & HISTORY
S.PRADEEP VARMA
• PRODUCT INFORMATION & TYPES OF CEMENT
HRISHIKESHAVA REDDY • FACTORS AFFECTING CEMENT INDUSTRY
SAI KUMAR
•CONSTRAINTS& PORTER’S FIVE FORCE MODEL
SRIHITHA
•CEMENT INDUSTRY IN INDIA
VANDANA
•TOP LEADING COMPANIES AROUD WORLD &INDIA
R.PRASHANTH
•SWOT ANALYSIS ,PEST ANALYSIS, MARKETING MIX
KULSUM
•ECONOMIC STATUS OF CEMENT INDUSTRY
MADHUMITHA
V.KARTHIK
•MARKET SHARE & PROBLEMS IN CEMENT INDUSTRY
SWETHA
•IMPACT OF COVID-19 ON CEMENT INDUSTRY
KRANTHI DEV
•SOLUTIONS
VYSHALI

3. INTRODUCTION
WHAT IS CEMENT?
A finely grounded inorganic material which has cohesive &
adhesive properties; able to bind two or more materials together
into a solid mass.
Cohesion is the tendency of a material to maintain its
integrity without separating or rupturing within itself when
subject to external forces.
Adhesion is the tendency of a material to bond to another
material.
Cement when mixed with water from a paste which sets and
harden by means of hydration reactions, and which after
hardening retain its strength and stability even under water.

4. TYPES OF CEMENT MATERIALS
TWO TYPES OF
CEMENTS:
Non-hydraulic cements: are
cements which are either not able
to set and harden in water (e.g.
Non-hydraulic lime) or which are
not stable in water (e.g. Gypsum
plasters).
Hydraulic cements: are cements
which are able to set and harden in
water, and give a solid mass which
does not disintegrate, either remain
stable in water (e.g. Portland
cement).

5. CEMENT INDUSTRY
Cement industry is considered as one of the core
infrastructure industries.
India is ranked as the second largest producer of cement
in the world, only behind China.
India’s cement industry is a vital part of its economy,
providing employment to more than a million people.
Indian cement industry attract huge investments, both
from Indian as well as foreign investors.
56 cement companies in India operating 124 large plants
and 300 mini plants.

6. HISTORY OF CEMENT
GREEKS AND ROMANS:-
Greeks used volcanic stuff from Island of Thera.
Romans used crushed volcanic ash and lime with water.
16th CENTURY:-
During this period, building material made from oyster shell lime, sand.
The Spanish introduced it to the Americas in the sixteenth century
18th CENTURY:-
The technical knowledge for making hydraulic cement was formalized by
French and British engineers in the 18th century.
20th CENTURY:-
Portland cement today, is a predetermined and carefully proportioned
Chemical Combination of calcium, silicon, iron, and aluminum.
Aspdin established a plant in Wakefield to manufacture Portland cement,
some of which was used in 1828 in construction of the Thames River
Tunnel.

7. PRODUCT INFORMATION
The energy consumption
brought down, through
productivity
enhancement and
modernization efforts on
the part of cement
plants.
The quality improved
impressively, with better
strength and durability.
The shift in consumer
preference from 'high
strength' to 'high
performance' or durable
concrete, which was
prompted by greater
quality and high cost of
structural repairs.
Improvement in quality
of concrete was achieved
through greater use of
mineral admixtures,
which are industrial
wastes, namely fly ash
and blast furnace slag.

8. TYPES OF CEMENT
Ordinary Portland
cement(OPC)
Portland Pozzolana cement
(PPC)
Rapid hardening cement
Quick setting cement
Low heat cement
Sulfates resisting cement
Blast furnace slag cement
High alumina cement
Colored cement
Air entraining cement
White cement
Expansive cement
Hydrographic cement

9. FACTORS AFFECTING CEMENT INDUSTRIES
ECONOMIC SCENARIO:
Phases of growth in the economy are positively linked to cement company growth.
COST STRUCTURE AND COMPETITIVENESS:
There isn’t much that cement companies can do regarding cost structure because the
margins are less to begin with cost advantages are usually due to companies having access to
a cheaper power source, a quality limestone reserve, or being close to bigger markets.
LEGAL ,REGULATORY, AND ENVIRONMENTAL SCENARIO:
The cement industry is affected by regulatory norms. This is prominent in developed
countries where environmental issues are more stringent. This adds to the companies’ costs.
TECHNOLOGICAL ADVANCEMENT:
A disruptive innovation can give the innovating company an advantage. For example,
when companies moved from the wet manufacturing process to the dry manufacturing process,
there where cost savings of 5%-10% of the overall cost structure.
GEOGRAPHIC ADVANTAGE:
It’s an advantage for companies to be near limestone mines or waterways. Ease of
transportation is an advantage

10. A. Cement is a key infrastructure industry.
B. Cement industry is the second most important
primary and basic industry for the economic
development in India.
C. Cement industry is in second place, after iron and
steel industry.
D. Cement is required by every industry cement is an
important part of industrial infrastructure.
E. It provides direct and indirect employment to a
large number of persons and contributes a major
part to Gross Domestic Product (GDP).
IMPORTANCE OF CEMENT INDUSTRY

11. CONSTRAINTS
• High cost of power
• High railway tariff
• High incidence of state and central levies and
duties
• Lack of private and public investment in
infrastructure project
• Low quality coal and inadequate growth of related
infrastructure like sea and rail transport
• Port and bulk transportation

12. PORTER’S FIVE FORCE MODEL

13. CEMENT INDUSTRYAROUND WORLD

15. TOP 10 CEMENT COMPANIES AROUND
WORLD AND INDIA

17. MARKETING STRATEGIES IN CEMENT
INDUSTRY
1. Be acquitted with the CEO
2. Determine your strategy
3. Create structural advantages
4. Test and implement commercial
practices
5. Change mindsets and build capabilities

18. SWOT ON CEMENT INDUSTRY

19. PEST ANALYSIS

20. MARKETING MIX

22. GROWTH RATE
The demand for cement in India can be attributed to three main
sectors viz Housing and Real Estate, Public Infrastructure and Industrial
Development. The factors that will lead to increase in demand from
these sectors include:
Housing and Real Estate
• Government initiatives like Housing For All to push demand in the
sector.
•Real Estate market in India is expected to reach US$ 1 trillion by 2023
from US$ 120 billion in 2017.
• Strong growth in rural housing and low-cost housing to amplify
demand.
Public Infrastructure
•Strong focus of Government of India
• Projects like Dedicated Freight Corridors and ports under
development.
• Metro rail projects already underway in most major cities.
• Government of India’s push with Smart Cities Mission and AMRUT
Industrial Development
Strong economic growth is expected to lead to growth of the
industrial sector and in turn increase in demand in the long run.

23. EXPORTS AND IMPORTS OF CEMENT
• India’s exports of cement, clinker and asbestos cement increased at CAGR of 10.37 per cent between FY12-FY18
to reach US$ 433.87 million. During the same period imports of cement, clinker and asbestos cement increased
at a CAGR of 11.14 per cent to US$ 174.36 million in FY18.
• Cement# exports and imports reached US$ 434.96 million and US$ 146.91 million, respectively between April
2018– February 2019.
• The country’s top export destinations for cement, clinker and asbestos cement in FY18 were Nepal, Sri Lanka,
USA, Maldives and UK.
• The country’s top five import sources for cement, clinker and asbestos cement in FY18 were Pakistan,
Bangladesh, Japan, Vietnam and Thailand.

24. FDI AND CONTRIBUTIONS TO 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.
• The cement industry is one of the major
contributors to the exchequers by the way of
indirect taxes.
• 100% FDI is permitted in the cement industry
• It contributes approximately 13% of GDP and
the industry is employing over 0.14 million
people .

25. GOVERNMENT INVESTMENTS
According to the data released by Department for Promotion of
Industry and Internal Trade (DPIIT), cement and gypsum products
attracted Foreign Direct Investment (FDI) worth US$ 5.28 billion
between April 2000 and March 2020.
In December 2020, the company planned to invest Rs. 5,477
crore (US$ 776.99 million) to raise its capacity by 12.8 mtpa.
In November 2020, Ramco Cements Ltd. acquired an additional
stake worth Rs 2.48 crore in Lynks Logistics.
In November 2020, Dalmia Cement has signed a contract with
Paytm for digitizing its payment processes..
In October 2020, Dalmia Bharat Group announced plans to
invest ~Rs 2,000 crore for setting up a cement plant in Kalaburgi,
Karnataka.
JK cement planned to invest Rs. 1,700 crore to increase its
production capacity to 15 million tonnes by end of 2020.
In November 2020, Shiva Cement Ltd, a subsidiary of JSW
Cement Ltd, has announced plans to invest over Rs. 1,500 crore in
a new 1.36 million tonne per annum clinker unit project in Odisha.

26. MARKET SHARE AND REVENUE
India is the world’s
second largest cement
market, both in
production and
consumption. Of the
total production
capacity,98% lies with
the private sector and
2% with the public sector
Basically , the housing
sector is the biggest
demand driver of
cement. The sector
accounts for about 67%
of the total consumption
in India. The other major
consumers of cement
include infrastructure at
13%, commercial
construction at 11% ,
and industrial
construction at 9%

27. PROBLEMS AND CHALLENGES
Excess
cement
capacity.
Cement
highly
taxed.
Sleep fall in
cement
exports.
Acute
shortage of
coal.
Inadequate
availability
of wagons.
Use of fly
ash
unviable.

28. COVID-19’S IMPACT ON SECTOR
Effect on Demand
• Global cement demand is
expected to shrink 3
percent year-on-year
Utilization Rate
• The global average
utilization rate, which
refers to producers' actual
output over potential
output based on fully
utilized production
capacity, could fall as low
as 60 percent for 2020
according to projections,
from about 70 percent
annually over the past five
years.
Stock prices and Foreign
Exchange risks
• Over the last 12 months,
share prices of major
cement producers have
fluctuated by an average
47 percent between their
52-week high low.
Fluctuations in forex rates
have eroded profit margins
in some emerging markets,
and increased energy costs
and cost of servicing debts
in hard currencies.

29. Global Cement Capacity and Production

30. Global Cement Capacity and Production

31. RESPONSE TO THE CRISIS
Short-term actions
•cost savings by minimizing nonessential expenses and reducing labour costs,
•cutting capital expenditures by postponing ongoing projects where possible
•preserving working capital by adjusting inventory levels to market conditions;
•and boosting liquidity by withdrawing credit lines and suspending dividends payments.
Health and safety
compliance
• Companies are ensuring that plants comply with new health and safety regulations and
standards set by governments in response to the pandemic. Generally, work can be
performed with a high degree of safety because of plants' tightly controlled work
environment, low personnel density, and the fact that much of the work takes place
outdoors. production capacity could fall as low as 60 percent.
Merger and
acquisition
activity
• In the short term, M&A activity is expected to be constrained as deals will be more difficult to
complete. However, in the medium term, large, well-capitalized companies could seek to
acquire smaller companies that are struggling due to the pandemic.
Government
support
• The sector could benefit from government policies, such as those seeking to stimulate
demand by promoting the housing market(e.g., facilitating easy access to home financing or
supporting affordable housing projects other public works).

32. INDEX OF CEMENT
INDUSTRIAL PRODUCTION
5.372
7.5
3.7
5.9
4.6
-1.2
6.3
13.3
-0.9
1.8
-15.5
-20
-15
-10
-5
0
5
10
15
Weight 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Apr- Feb
2019-20
Apr- Feb
2020-21*

33. SOLUTIONS
Cement plant’s cost of production can be reduced by carefully studying the raw materials &fuel
availability
By using GST to reduce operating cost in future
Overcome the shortage of coal in cement industries by using railway transportation
Government actions/activities
Using technology/digitalization
Process control and optimization
Energy management and sustainability
Power distribution
Manufacturing operations
Safety and security
Reducing the pandemic in cement industry by using some steps

34. THANK YOU