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Cement industry


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Cement industry

  3. 3. Cement in India A Cyclical Business of Supply Not Demand
  4. 4. Cement Industry - A Paradigm Shift <ul><li>No new cement plants in next two years </li></ul><ul><li>Demand supply gap likely to be over in the next couple of months </li></ul><ul><li>Consolidation is well on its way to bring stability in pricing </li></ul><ul><li>Future Demand to be much higher on account of building of Roads, Ports & other infrastructure </li></ul><ul><li>Housing becoming a major activity in the economy </li></ul>
  5. 5. <ul><li>Due to …… </li></ul><ul><li>Low Interest Rates </li></ul><ul><li>Availability of mortgage finance due to ample liquidity </li></ul><ul><li>Increasing disposable Income </li></ul>During Calendar year 2011 Cement demand supply will balance – A situation not seen in past several years
  6. 6. GEOLOGY (RAW MATERIALS) <ul><li>The fundamental chemical compounds to produce cement clinker are: </li></ul><ul><ul><ul><ul><li>Lime (CaO) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Silica (SiO 2 ) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Alumina (Al 2 O 3 ) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Iron Oxide (Fe 2 O 3 ) </li></ul></ul></ul></ul>Fly ash: by-product of burning finely grounded coal either for industrial application or in the production of electricity Raw materials used in the production of clinker cement
  7. 7. THE CEMENT MANUFACTURING PROCESS 1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay ) are blasted from the quarry. 3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing , are transported to the plant by conveyor. The plant stores the materials before they are homogenized. quarry 2. TRANSPORT : The raw materials are loaded into a dumper . Quarry face 1. BLASTING 2. TRANSPORT 3. CRUSHING & TRANSPORTATION crushing conveyor dumper storage at the plant loader
  8. 8. THE CEMENT MANUFACTURING PROCESS 1. RAW GRINDING : The raw materials are very finely ground in order to produce the raw mix . Raw grinding and burning 2. BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that can be as hot as 2000 °C. The raw mix burns at 1500 °C producing clinker which, when it leaves the kiln, is rapidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed to make cement. 1. RAW GRINDING 2. BURNING conveyor Raw mix kiln cooling preheating clinker storage at the plant Raw mill
  9. 9. THE CEMENT MANUFACTURING PROCESS 1.GRINDING : The clinker and the gypsum are very finely ground giving a “pure cement”. Other secondary additives and cementitious materials can also be added to make a blended cement. Grinding, storage, packing, dispatch 2. STORAGE, PACKING, DISPATCH : The cement is stored in silos before being dispatched either in bulk or in bags to its final destination. dispatch 1. GRINDING 2. STORAGE, PACKING, DISPATCH clinker storage Gypsum and the secondary additives are added to the clinker . silos bags Finish grinding
  10. 10. Our Business Model <ul><li>Own Infrastructure -Logistics Management </li></ul><ul><li>Strong brand & efficient distribution </li></ul><ul><li>Presence in prime markets </li></ul><ul><li>Lowest cost cement producer </li></ul>
  11. 11. Own Infrastructure <ul><li>7 Owned Cement Ships for transporting Cement by Sea </li></ul><ul><li>Large port in Gujarat to handle export of Cement ( 2 mn tonnes this year) & Import of Coal / Oil </li></ul><ul><li>3 Cement receiving terminals </li></ul><ul><li>190 MW of Captive Power Plants at various Cement Plants to give reliable and cheap power </li></ul>
  12. 12. Strong Brand <ul><li>India - A bagged market </li></ul><ul><li>Individual home builder - key driver of demand </li></ul><ul><li>Our focus </li></ul><ul><li>Best quality cement </li></ul><ul><li>Good packaging </li></ul><ul><li>Logistic management - strong distribution network </li></ul><ul><li>Customer service </li></ul>
  13. 13. <ul><li>Uses </li></ul><ul><li>Main use is in the fabrication of concrete and mortars </li></ul><ul><li>Modern uses </li></ul><ul><ul><li>Building (floors, beams, columns, roofing, piles, bricks, mortar, panels, plaster) </li></ul></ul><ul><ul><li>Transport (roads, pathways, crossings, bridges, viaducts, tunnels, parking, etc.) </li></ul></ul><ul><ul><li>Water (pipes, drains, canals, dams, tanks, pools, etc.) </li></ul></ul><ul><ul><li>Civil (piers, docks, retaining walls, silos, warehousing, poles, pylons, fencing) </li></ul></ul><ul><ul><li>Agriculture (buildings, processing, housing, irrigation) </li></ul></ul>USES
  14. 14. Sea terminals Cement factories HP Gujarat Rajasthan Maharashtra Punjab Ambuja Cement Gujarat 5.0 North India 6.0 Maharashtra 3.0 Total Capacity 14.0 Mn. tonnes 1986 - 0.7 Mn. Tonnes Today - 14 Mn. Tonnes A growth of 18 times since inception
  15. 15. FACILITY LOCATION <ul><li>Availability of transportations facility. </li></ul><ul><li>Availability of market. </li></ul><ul><li>Availability of services </li></ul>
  16. 16. But Cement Industry Not without challenges
  17. 17. Challenges <ul><li>Cement is energy intensive industry </li></ul><ul><li>Coal, Power & Oil constitute major costs </li></ul><ul><li>Increasing cost of fuel </li></ul><ul><li>Better realisation only in few markets </li></ul>
  18. 18. Growth in Profits for only those who can meet these Challenges
  19. 19. Our Strategy <ul><li>Presence in the growing markets of North & West </li></ul><ul><li>Retail Focus – Premium pricing </li></ul><ul><li>Largest Exporter of cement – 15% of Production </li></ul><ul><li>35% Cement transport by sea - Cheapest Mode </li></ul><ul><li>And ... Lowest Cost Cement Producer </li></ul>