3. What is Cement &
Construction?
• Cement : A cement is a binder, a
substance that sets and hardens
independently, and can bind other
materials together.
• Construction: Construction is a
process that consists of
the building or assembling
of infrastructure.
4. Indian Cement
Industry
India is the second-largest cement producing country in the
world after China.
In India, cement demand emanates from four key segments:
Cement Demand
Housing
Infrastructure
Commercial
Construction
Industrial Sector
5. Indian Construction
Industry
• The construction industry is the second largest industry of the
country after agriculture.
• It makes a significant contribution to the national economy and
provides employment to large number of people.
• The use of various new technologies and deployment of project
management strategies has made it possible to undertake projects of
mega scale.
• In its path of advancement, the industry has to overcome a number
of challenges
Housing
Disaster Resistant
Construction
Water
Management
Mass
Transportation
6. Importance of cement
in construction
•
Cement is a very important building material
used in the construction industry.
•
Cement has replaced all other binding
materials, for example, clay and lime. Cement is
the strongest binding material.
•
Cement is now used in many construction trade
items like Plain Concrete, Reinforced
Concrete, Mortar, Plaster, Grouts, Paints and in
Pre-cast Elements.
•
In an ordinary building construction the cement
accounts to about 15-17% of the cost of
construction. In some other major constructions
like concrete roads and bridges, it is very much
more.
7. CEMENT MANUFACTURERS'
ASSOCIATION (CMA)
•
•
•
•
Cement Manufacturers' Association (CMA) is the most important apex body of
cement manufacturers in India which was established in 1961.
It is a unique body in as much as it has been both the private and public sector
cement companies as its members.
CMA acts as a bridge between the Indian cement Industry and the Government.
Its registered office is in New Delhi, Corporate Office in Noida, Branch offices are in
Mumbai and Hyderabad.
Main Objectives:
To promote the growth of the whole
of the cement industry.
To protect the consumer interests
and even their adaptability.
To identify newer applications of
cement usage.
To establish contacts with similar
bodies abroad for exchange of
information, data, publications, etc.
9. Top Global Cement
Companies
•
•
The world’s cement-makers rake in revenues of $250 billion a year.
Outside China, which accounts for half of global demand and production
and is mainly served by local firms, six vast international firms—
Buzzi, Cemex, Heidelberg, Holcim, Italcementi and Lafarge—together have
40% or so of the market.
43
37
81
35
Capacity
231
96
212
114
150
170
Lafarge
Holcim
CNBM
Anhui Conch
Heidelberg
Cemex
Italcementi
Buzzi
Eurocement
Cimpor
11. Top 5 Indian Cement
Companies
1.
UltraTech Cement
Corporate office - Mumbai, Maharashtra | Establishment – 1987 |
Business – Cement and Read mix concrete | Website –
www.ultratechcement.com |
UltraTech cement is largest clinker producer and exporter which has an annual
capacity of more than 50 million tonnes. It is a flagship company of Aditya Birla
group and leading cement company which acquired all ISO and OHSAS
certifications.
2.
ACC Limited
Corporate office - Mumbai, Maharashtra | Establishment – 1936 |
Business – Cement and Read mix concrete | Website – www.acclimited.com|
ACC cement limited is one of the top cement company in India established in 1936
which is also a leading player in ready mix concrete. It is part of the world’s leader
Holcim Group.
3.
Ambuja Cement
Corporate office - Mumbai, Maharashtra | Establishment – 1983 |
Business – Cement and Read mix concrete | Website –
www.ambujacement.com |
Ambuja Cement is among of the top 5 cement companies in India. It was founded
in year 1983 and formerly known as Gujrat Ambuja cement Ltd. Company has an
annual capacity to produce more than 27 million tonnes.
12. Top 5 Indian Cement
Companies
4. Jaypee Cement
Corporate office - Noida, Uttar Pradesh | Establishment – 2001 |
Business – Cement, Infrastructure and construction | Website –
www.jalindia.com |
Jaypee is a well known corporate group in the business of
power, infrastructure, construction and highway. Company started
cement business in the year 2001 and has annual capacity to
manufacturer almost 35 MTPA.
5. India Cement
Corporate office - Chennai, Tamilnadu | Establishment – 1946 |
Business – Cement business | Website –
www.indiacements.co.in |
India cement is leading cement manufacturer in southern region of
India which was established a cement plant in Sankarnagar in year
1946 and since then setup total 7 plants in various part of Andhra
Pradesh and Tamilnadu. Company has an annual capacity to
produce 15 MTPA cement.
13. Porters Five Forces
Model Cement Industry
Entry Barriers HIGH : high
capital investment and
economies of scale mark
high barriers for entry
Supplier Power
MEDIUM/MODE
RATE: fuel and
freight are
important
ingredients which
makes industry
local by very
nature
Inter Firm Rivalry LOW
: Oligopolistic Nature
power with few major
players
Threat of substitutes LOW:
Cement has no substitutes
practically in all areas where it
is used.
Buyer Power
LOW: high
concentration on
local market drive
away consumer
buying power
15. Top 5 Global Cement
Companies
1. Lafarge Cement company: Lafarge is a French
industrial company specialising in four major
products: cement, construction aggregates, concrete
and gypsum wallboard. The company is the world's
largest cement manufacturer. CEO: Bruno Lafont
, Founded: 1833
Website: www.lafarge.com
2. Holcim Cement : Holcim is a Swiss-based
global building materials and aggregates company.
The company also supplies ready-mix concrete and
asphalt including associated construction services.
the Group has grown into a global company with
market presence in over 70 countries on all
continents. Founded: 1912
Website: www.holcim.com
16. Top 5 Global Cement
Companies
3. China National Building Material: Company or CNBM established
in 1984, is a state-owned enterprise . CNBM is currently the largest
cement and gypsum board producer in China in terms of production
capacity. It is also the largest glass fiber producer in Asia in terms of
production capacity.
Website: www.cnbmltd.com
4. Anhui Conch Cement Company Limited: Founded: 1997, Anhui
Conch Cement, is the largest cement manufacturer or
seller in Mainland China, headquartered in Anhui Province. Its
business scope covers the manufacture and sales of cement
and clinker
Website: http://english.conch.cn/
5. Heidelberg Cement:
Founded: 1874
Heidelberg Cement is a German multinational building materials
company headquartered in Heidelberg, Germany. In 2010, it was
the world's third largest cement producer, the market leader in
aggregates and fourth in ready-mix concrete
Website: www.heidelbergcement.com/
21. Trade Restrictions in
India
Indian Cement Industry
•
Indian cement industry has witnessed an increase in
its export .The international cement demand is derivative
in nature as it depends on the constructional
activities, real estate, industrial activities.
•
Indian cement industry has transited itself into more
advanced one. The Indian cement industry is not only
meeting the requirements arisen within the domestic
territory but also fulfilling the burgeoning demands of the
international arena.
•
India is also exporting good amount of cement clinker
and by products of cement. Due to the superlative
quality, the Indian cement has occupied the high position
on the global map.
22. Restrictions in India
•
Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius and
UAE are major export destinations for the cement
industry.
•
Exports constitute less than one per cent of the capacity.
India is largely self-sufficient in cement production and its
import is less than one million tonnes.
•
•
•
.
The prices of cement are determined by the market
forces, as this industry has been de-licensed under the
Industrial (Development & Regulation) Act, 1951.
The price and distribution control of cement has been
removed since 1989.
Cement has also been deleted from the list of essential
commodities w.e.f 15th February, 2002
23. Restrictions in India
• Indian cement industry appears to be
the highest taxed cement industry
among the selected countries such as
China/ Hong Kong, Bangladesh, Etc.
This makes prices of Indian cement noncompetitive vis-à-vis other countries in
international market.
• Cement' has been a de-controlled
commodity and, therefore, it has been
subject to forces of open
market, i.e., 'demand and supply'.
24. Restrictions in India
The Tariff Commission has indicated that the retail price of
cement in India is second highest next only to Japan.
The Tariff Commission felt that the high retail cost of
Indian cement can be attributed to the following factors:(i) High cost of raw material;
(ii) High power cost;
(iii) High transportation cost;
(iv) Dependence on road transport for movement of
clinkers to cement;
and
(v) Profit motive of the cement companies
25. Highlights of Indian Cement Industry @
as on 31st March, 2012 via
http://www.cmaindia.org/
Large cement plants
•
•
•
•
•
•
•
Installed Capacity (Mn. t.)
Turnover in 2011 (Mn. US$) around
Manpower Employed (Nos.) Approx.
Plants with Capacity of Million tonnes and above (Nos.)
Cement Production (Mn. t.) 2011-2012
Cement Plants (Nos.)
Companies (Members) (Nos.)
244.05
19,500
1,20,000
102
179.87
144
42
Mini & White Cement Plants
• Cement Production (Mn. t.) 2011- 12
• Cement Plants (Nos.) Approx.
• Installed Capacity (Mn. t.)
6.00(P)
365
11.10
26. Conclusion
•
•
•
Cement is a success story of deregulation.
In 20 years of de-control, the capacity has gone to 330 million tonnes. If this
capacity had not been added, India’s growth would have been severely
constrained.
A combination of several factors has led to the slow down in cement sector - the
global slowdown caused by the financial crisis, domestically the drop in
investment in infrastructure and housing coupled with a high interest-rate
regime and not to mention the inflation.
•
cement is a long-term business. You cannot look at cement on a quarter-toquarter basis or a year-to-year basis.
•
As growth is slowly picking up cement demand will also increase slowly.
