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Transcript of Cement Industy
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CEMENT INDUSTRY
BY
N.SHRI SOUNDARYA1
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Economy Overview
Indian economy grew at the rate 8.6% during
2010-11.
India is expected to grow at 6.8%
in calendar year (CY) 2012.Growth in India is expected to accelerate
strongly in CY13 at 9.5%.
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INTRODUCTION
Cement - the basic element for the construction
of roads, dams, bridges, water treatment
facilities, hotels, schools etc.
Raw materials used in the manufacturingprocess - limestone, sand, clay, power and iron
ore.
Limestone- main raw material.
Limestone deposits are obtained by leasingagreement.
Period of Lease- 25 years.
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CONTD.
Manufacturing process :
Raw Material Preparation
Raw Grinding
Pyroprocessing
Finish Grinding and Distribution
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INDUSTRY OVERVIEW
India is the worlds second largest producer of
cement after China, accounting for 78 per cent
of global cement production.
Indias total cement production in FY 2010-11was about 290 mtpa.
India exports cement to more than 30 countries
namely Nepal, Srilanka, Bangladesh and Middle
east countries.The rationale for the growth in cement exports is
the variety of cements produced here.
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TYPES OF CEMENT
TYPES OF CEMENT USES
Portland Blast Furnace Slag
Cement (PBFS)
Construction ofDams
Sulphate Resisting Portland
Cement
Used in Seacoast
Ordinary Portland Cement
(OPC)
Construction of Castings
Oil Well Cement Fixing oil well
White Cement Tiles, Flooring Works
Clinker Cement Construction of Bridges, Houses
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CONTD.
Expected to reach 303 mtpa during 2011-14 with
a CAGR of 12%.
CMA is targeting to achieve 550 MT capacity by
2020
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GEOGRAPHIC SPREAD
REGIONS INSTALLED
CAPACITY
(Million Tones Per
Annum)FY10
KEY MARKETS
North 55.6 Rajasthan, Punjab, Haryana
South 93.4 Tamil Nadu, AndhraPradesh and Karnataka
East 36.9 West Bengal, Orissa andBihar
West 40.4 Maharashtra and Gujarat
Central 30.7 Uttar Pradesh
TOTAL 257
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GROWTH IN DOMESTIC
CONSUMPTION OF CEMENT
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MAJOR CEMENTPLAYERSIN
INDIA
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PRICING POLICY
Price is decided by Cement Manufacturers
Association.
Also influenced by demand and supply.
Current Price between Rs.280-300.
Price from state to state on account of cost of
production.
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TOP10 CEMENT
COMPANIESININDIACOMPANIES TURNOVER(in crores)UltraTech Cement Limited 13980.75
ACC Limited 9339.64
Ambuja Cements Limited
7998.55
Rain Cement Limited 4965.76
India Cement Limited 3667.16
Shree Cement Limited 3558.64Prism Cement Limited 3456.03
Madras Cement Limited 2644.71
Birla Cement Limited 2264.35
JK Cement Limited 2119.33 12
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ROAD AHEAD
Strong demand drivers- Housing segment ,
Infrastructure, Commercial real estate.
Housing growth:
Housing segment- major portion of the total
domestic demand
Estimated demand for housing units - 4.3 million
units.
Government initiatives in rural and semi-urban
areas .
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CONTD.
Infrastructure growth:
Investment in infrastructure - USD1 trillion in
the 12th Five Year Plan (201217).
National Highways Authority of India (NHAI)
along with the Planning Commission in the
12th Five-Year Plan allocates more than
20,000km of highways
Expanding the railway capacity and handling
and storage facility- reduction in transportation
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CONTD
Commercial real estate growth
Demand for Commercial Real Estate segments -
retail space, office space ,hotels, hospitals,multiplexes and schools.
Demand for office space -increasing number of
multinational companies and the growth of the
services sector
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CONTD.
Construction of Hotels-Strong growth in tourism,
including both business and leisure travel.
Estimated demand for real estate segment in
2014:Office -240 million sq ft
Retail- 55 million sq ft
Hospitality - 78 million rooms.
Use of alternate fuels to lower production costs
and emissions
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NEW PROJECTS 2012
Government of West Bengal is planning to construct
a super specialty hospital in dist. Birbhum,
West Bengal
Spirit Global Constructions is to construct acommercial mall, multiplex and restaurant in
Ludhiana, Punjab which spreads over 70,000 sqft.
Kolkata Metro Rail Corporation is implementing a
metro line from Baranagar-Barrackpore
and Dakshineswar and the cost of the project is
Rs.20696 million .
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Contd
Haryana State Roads & Bridges Development Corpn.
is implementing road upgradation to Buria Kothi
Punhana road with total investment of Rs. 53.58
Crore, work on the project is likely to be completed
by December 2012.
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KEY CHALLENGES
FY11 was quite challenging for the cement
industry
Fuel and energy prices remained high.
Increase in imported as well as domestic coal
prices impaired energy costs by 23% which
rose substantially from Rs. 682/t to Rs.840/t
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Over capacity, rising input costs and volatile
pricing environment is expected to affect
industry margins.
Cement prices remained under pressure causingmargins to contract severely.
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THANK YOU
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