CHAPTER III

INDIAN CEMENT INDUSTRY—AN OVERVIEW AND PROFILE

OF SELECT CEMENT COMPANIES

3.1 INTRODUCTION

Being one of the basic elements for setting up strong and healthy infrastructure,

Cement plays a crucial role in economic development of any country. Having more than

a hundred and fifty years history, it has been used extensively in construction of anything,

from a small building to a mammoth multipurpose project. The history of the cement

industry in India dates back to the 1889 when a Kolkata-based company started

manufacturing cement from Argillaceous. But the industry started getting the organized

shape in the early 1900s. In 1914, India Cements Company Ltd, was established in

Porbandar Gujarat with a capacity of 10,000 tons.

Though the cement industry has been in existence since 1914, appreciable growth

in the cement production has been witnessed only after the introduction of partial

decontrol in 1982 culminating in total decontrol in 1989 and delicensing in 1991.

With the implementation of liberalisation policies of the government in 1991 followed by

government's thrust on infrastructure development in the country, the pace of the growth

of the cement industry has been unprecedented.

At present India is the second largest cement producing country in the world, next

only to China both in quality and technology. With the adoption of massive

modernisation and assimilation of state-of-the-art technology, Indian cement plants are

today the most energy-efficient and environment-friendly and are comparable to the best

in the world in all respects, whether it is size of the kiln, technology, energy consumption

or environment-friendliness.

3.2. WORLD CEMENT PRODUCTION 2013

The economic development of every nation calls for construction activity on an

extensive scale. Production of cement in the world has increased over the years. Table 3.1

describes the list of top countries in cement production in 2013 based on USGS Mineral

Program Cement Report (February 2014). While the top three countries China, India and 42

USA, has not changed in the last six years, and from 2005 to 2010 declining US

production by 36.5 per cent was noteworthy. In 2011, U.S. Production performed a slight

increase (1.8 per cent). The most progressing countries in terms of ranking are Turkey

(10th to 4th), Brazil (13th to 5th) and Vietnam (17th to 8th). All top European cement

producing countries except Turkey lost their rankings (Spain, Italy, Germany and

France), as a result of the global financial crisis.

TABLE 3.1

WORLD CEMENT PRODUCTION IN 2013e

Rank Country/Region mil Tonnes 1 China 2,300 2 India 280 3 United States 77.8 4 Iran 75 5 Brazil 70 6 Turkey 70 7 Russia 65 8 Vietnam 65 9 Japan 53 10 Saudi Arabia 50 11 South Korea 49 12 Egypt 46 13 Mexico 36 14 Indonesia 58 15 Thailand 35 16 Germany 34 17 Pakistan 32 18 Italy 29 19 Spain 20.7

Others 597 2013 World Production 4000

Source: en.wikipedia.org/wiki/List of countries by cement production

43

3.3 PRODUCTION OF CEMENT IN INDIA

The production of cement in India grew at a very faster rate. During the year 1994

to 1995 the production of cement was 58.35 MT. It was more than double in the year

2003-04 with 117.5 MT. Further there was a sharp rise in the production of cement to

178.97 MT in the year 2011-12. The cement companies are also increasing their

production due to high market demand.

TABLE 3.2 CEMENT PRODUCTION IN INDIA

(In Million Tonne) (In per cent)

Year Total Growth Rate

1994-95 58.35 _

1995-96 64.53 11

1996-97 69.98 8

1997-98 76.74 10

1998-99 81.67 6

1999-00 94.21 15

2000-01 93.61 -1

2001-02 102.4 9

2002-03 111.35 9

2003-04 117.5 6

2004-05 127.57 9

2005-06 141.81 11

2006-07 155.66 10

2007-08 168.32 8

2008-09 181.61 8

2009-10 161.6 -11

2010-11 154.08 -5

2011-12 178.97 16

Source: Cement Manufacturers Association, Govt. of India. 44

3.4 CONSUMPTION OF CEMENT IN INDIA

With the boost given by the government to various infrastructure projects, road

network and housing facilities, growth in the cement consumption has been on the rise in the

years to come. Table 3.3 shows the domestic consumption of cement in selected states of India.

TABLE 3.3

SELECTED STATE-WISE DOMESTIC CONSUMPTION OF CEMENT IN

INDIA (2011-2012

States (In Tonne)

(in percentage ) Consumption

Andhra Pradesh 29709329 13.38 Assam 105109 0.05 Bihar 628902 0.28 Chhattisgarh 12752018 5.74 Delhi 0 0.00 Gujarat 18717623 8.43 Haryana 1942924 0.88 Himachal Pradesh 6967672 3.14 Jammu and Kashmir 177693 0.08 Jharkhand 6220130 2.80 Karnataka 15697610 7.07 Kerala 530122 0.24 Madhya Pradesh 22033765 9.92 Maharashtra 15271217 6.88 Meghalaya 1612383 0.73 Odisha 5530212 2.49 Punjab 5005112 2.25 Rajasthan 37402029 16.84 Tamil Nadu 21753911 9.80 Uttar Pradesh 10252298 4.62 Uttarakhand 2833834 1.28 West Bengal 6904516 3.11 India 222048409 100.00 Source : Lok Sabha Unstarred Question No. 4062, dated on 30.04.2012.\

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3.5 SECTOR WISE CEMENT CONSUMPTION

Figure 3.1 illustrates the cement consumption in various sectors. The housing

sector is having the highest cement consumption accounting for about sixty four per cent

of the total consumption in India during the year 2008-2013. The other major consumers

of cement include infrastructure sector at seventeen per cent, commercial and institutional

sector at thirteen per cent and industrial construction at six per cent.

CHART 3.1

MAJOR CEMENT DEMAND DRIVERS (2008-13)

Source: CMIE

3.6 REGION-WISE CEMENT CONSUMPTION IN INDIA

Cement consumption varies region-wise because the demand-supply balance, per

capita income and level of industrial development differ in each state and consequently,

in each region. In India, the cement industry is divided into five regions, viz., north,

south, east, west and central region. The southern region of India has the highest cement

consumption among the five regions. The following table 3.4 shows the region- wise

cement consumption and percentage growth in India during the period from 2003-04 to

2011-12.

46

TABLE 3.4

REGION-WISE CEMENT CONSUMPTION AND PERCENTAGE GROWTH IN INDIA (2003-2004 TO 2011-2012)

(In ' 000 Tonne)

(In ' 000 Tonne)

Regions 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12

Northern Region 22861 24256 27057 29883 33521 35130 26683 27503 30768

Eastern Region 17477 20397 22661 23991 25347 28218 25870 29150 29981

Southern Region 32032 33433 39368 44806 49170 54425 52655 51026 50913

Western Region 22524 24586 25906 28275 32234 33968 28068 31475 35776

Central Region 18969 20406 20571 22405 23761 26242 24970 27385 29936

Total -Domestic Consumption 113863 123078 135563 149360 164033 177983 158246 166539 177374

%Age Growth 6 8 10 10 10 9 13 5 7

Source: Cement Manufacturers Association, Govt. of India. (14499)

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3.7 INSTALLED CAPACITY IN INDIAN CEMENT INDUSTRY

The installed capacity of cement industry in India has continuously shown an

increasing trend over the period. The industry started with 0.0010 MT in 1960. In the year

March 2014, total installed cement capacity in India stood at 370-375 million tonnes.

Figure 3.2 shows the region-wise installed capacity of cement for the year 2013-14. High

installed capacity of cement is found in southern region (thirty seven per cent) followed

by northern region (twenty one per cent), eastern region (fifteen per cent), central region

(fourteen per cent) and western region (thirteen per cent) respectively.

CHART 3.2

REGION-WISE INSTALLED CAPACITY (2013-14)

Source: CRISIL Research

3.8 CAPACITY UTILISATION IN INDIAN CEMENT INDUSTRY

The trend in capacity utilisation of the industry is interesting to analyse, as there

were many fluctuations all through the period. Starting with ten per cent in the beginning

of the cement industry, the capacity utilisations wend to the peak around eighty five per

48

cent in 1994-95. This could not be sustained and the capacity utilisation fell sharply to

seventy eight per cent in 1998-99. But after total decontrol, there was some sort of upturn

in this trend due to incrusted production levels.

It may be mentioned that the capacity utilisation had been at their highest only

after 1999-2000 when it reached eighty seven per cent and went up to an average of

ninety four per cent for the financial year 2007-08. During 2008-09, the capacity

utilisation was reduced to eighty eight per cent and in the year 2009-10 it was reduced to

eighty three per cent. In the year 2010-11, the capacity utilisation was reduced by seventy

six per cent. The following table 3.5 shows the month-wise capacity utilisation of cement

in India during the period from 1994-95 to 2010-11.

49

TABLE 3.5

MONTH-WISE CAPACITY UTILISATION OF CEMENT IN INDIA (In Percentage)

Month April May June July Aug Sept Oct Nov Dec Jan Feb Mar During the year 1994-95 85 90 82 84 78 77 86 78 88 88 86 94 85 1995-96 80 82 79 84 78 74 78 72 86 90 88 98 82 1996-97 83 85 82 85 81 70 72 73 78 85 82 98 81 1997-98 73 93 84 75 72 73 82 79 81 86 84 95 81 1998-99 74 81 77 71 67 66 71 75 83 87 83 98 78 1999-00 91 91 91 81 76 74 76 84 89 94 89 104 87 2000-01 87 90 93 83 71 73 83 81 73 76 74 93 81 2001-02 82 85 85 69 69 77 77 77 74 79 79 92 79 2002-03 84 88 82 80 73 73 78 77 84 83 81 94 81 2003-04 76 89 85 79 73 74 78 76 83 85 86 92 81 2004-05 87 85 80 83 72 80 86 82 87 90 84 95 84 2005-06 90 93 88 82 82 79 90 85 93 98 92 106 90 2006-07 96 94 94 89 80 88 94 91 98 102 95 108 94 2007-08 98 99 94 91 88 87 94 89 95 97 95 99 94 2008-09 91 90 87 87 78 81 86 84 92 94 92 99 88 2009-10# 88 87 85 84 79 73 76 77 86 87 82 88 83

2010-11## 81 80 76 73 71 70 81 65 74 78 78 87 76 Note : # : Include non operative capacity (4.60 Mn.t) and this capacity has been ignored while calculating capacity utilisation of the industry. ## : Include non operative capacity (3.35 Mn.t) and this capacity has been ignored while calculating capacity utilisation of the industry. Source : Cement Manufacturers' Association. (13295)

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3.9 EXPORT OF CEMENT FROM INDIA

Apart from meeting the entire domestic demands, the industry is also exporting

different varieties of cement and clinker. India is strategically placed to be a major

exporter of cement in many countries. The export of Indian cement has increased over the

years, mostly after decontrol, giving the much- required boost to the Indian cement

industry. The following table 3.6 shows the export of cement form India.

TABLE 3.6

EXPORT OF CEMENT FROM INDIA

Selected Country-wise Exports of Cement (Total, Portland Grey, Portland White, Cement Clinker and Others) from India (2010-2011 and 2011-2012)

Country

2010-11 2011-12

Qty. Value Qty. Value

(tonne) ('000) (tonne) ('000)

All Countries 3494859 9184336 3398546 10421215

Sri Lanka 917505 1841620 2012486 5640835

Nepal 1770015 5236139 890117 2976356

Bhutan 785 3197 58838 357149

South Africa 69181 214157 81314 285682

Bangladesh 20605 52922 57417 172550

Maldives 49978 181316 48074 164472

Madagascar 58422 108380 61147 138861

Reunion - - 43120 93181

Mozambique 52561 108453 24199 80348

UAE 51529 135915 14915 73941

Other Countries 504278 1302237 106919 437840

Source: Indian Bureau of Mines, Govt. of India. (ON559)

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3.10 TYPE OF CEMENTS PRODUCED IN THE INDIAN CEMENT INDUSTRY

The Cement industry plays a key role in meeting society needs for housing and

basic infrastructural activities. Based upon the nature of the cement production and based

on its usage, the cement is classified into the following types

• Ordinary Portland Cement (OPC)

• Portland Pozzolana Cement (PPC)

• White Cement

• Portland Blast Furnace Slag Cement (PBFSC)

• Specialised Cement

• Rapid Hardening Portland Cement

• Water Proof Cement

Various kinds of cements are used by different groups of people based on their

need and utility, viz., construction of houses, dams, ports, building roads, railway

sleepers, oil well etc.,

3.11 TECHNOLOGY UP-GRADATION

Cement industry in India is currently going through a technological change as a

lot of up-gradation and assimilation is taking place. Currently, almost ninety three per

cent of the total capacity is based entirely on the modern dry process, which is considered

as more environment-friendly. Only the rest, seven per cent uses old wet and semi-dry

process technology. There is also a huge scope of waste heat recovery in the cement

plants, which lead to reduction in the emission level and hence improves the

environment. The induction of advanced technology has helped the industry immensely

to conserve energy, fuel and some materials, substantially.

3.12 CEMENT MANUFACTURING PROCESS

The manufacturing process of cement consists of mixing, drying and grinding of

limestone, clay and silica into a composite mass. The mixture is then heated and burnt in

a pre-heater and kiln to be cooled in an air-cooling system to form clinker, which is in the

52

semi-finished form. This clinker is cooled by air and subsequently ground with gypsum

to form cement. The following figure 3.3 depicts the cement manufacturing process, right

from quarrying the raw material to packing the cement in bags.

CHART 3.3

CEMENT MANUFACTURING PROCESS

Source: CRISIL Research

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3.13 PROBLEMS PLAGUING THE CEMENT INDUSTRY

There are a number of constraints and bottlenecks which are hindering the growth

of this core sector industry. A few of the major problems of the industry are discussed

below:

Excess cement capacity

Cement industry has been experiencing a glut situation as there has been

mammoth mismatch between cement demand and its supply. The industry had created

the capacity on the back of government's projection of potential cement demand arising

out of the thrust given for infrastructure development in the country and the allocation of

funds earmarked for the purpose. However, the cement demand, as projected, has not

materialised, despite the capacity having been created well in advance after making huge

investments.

Acute shortage of coal

Coal is one of the major raw materials needed by the industry both in the

manufacturing of cement and also for generating power. In the last couple of years, there

has been a steep drop in the supply of linked coal to the cement industry from 70 per cent

in FY04 to almost 39 per cent now, mainly due to diversion of coal to the power sector.

Cement companies, therefore, have perforce to resort to either open market purchase or

imported coal which works out to nearly 2 to 2.5 times higher than the domestic price or

use of the alternate fuel like pet coke, lignite, etc. which also adds up significantly to the

additional cost of production. What is worse, new capacities are not being given any coal

under the Linkage Scheme and therefore there is a real fear that the shortage of the main

fuel, with no assurance of its availability in future, may actually hamper the required

capacity additions for future build up. With the increasing cost of coal and other input

materials such as diesel, etc. the production cost of cement has gone up significantly.

Inadequate availability of wagons

Rail is the ideal mode of transportation for cement industry. However, it has

always been plagued by the short supply of wagons, particularly during the peak period.

In addition to this, infrastructure constraints the policies of the railways have been

54

hampering the planned movement of cement to the consumption centres, adversely

impacting the production schedule and also increasing the overall transportation cost of

cement. Rail share for cement which was 53 per cent a couple of years back has come

down to 35 per cent now, which is a matter of great concern both to the cement industry

and the railways.

Cement highly taxed

Although cement is a high volume low value product, it is one of the highly taxed

commodities (60 per cent of the ex-factory price), even more than luxury goods. This is

exclusive of the freight transportation, which is about 20 per cent of the operating cost.

The levies and taxes on cement in India are far higher, compared to those in the countries

of Asia-Pacific region or even compared to the developing economies like Pakistan and

Sri Lanka. Cement and steel are the two major materials needed for construction of any

infrastructure. However, it is ironic that the rate of VAT charged on cement and steel

differs vastly. While the value-added tax (VAT) on steel is only four per cent, it is

12.5 per cent on cement/clinker which goes up to even 15 per cent in some of the states.

Steep fall in cement exports

With the high incidence of government levies, infrastructure constraints at ports

and the regulatory policies of the government providing encouragement for import of

cement with nil custom duty, the export of cement and clinker from India has been

steadily and continuously declining from 9 million tonnes in FY07 to 3.5 million tonnes

in FY12, despite the fact that Indian cement industry is presently having the substantial

excess capacity of cement and clinker.

Use of fly ash unviable

Cement industry's initiative and investment to the tune of more than Rs 1000 crore

for effectively utilizing the industrial waste fly ash, which was otherwise posing a

nuisance as a health hazard, has helped the thermal power plants in addressing and

tackling the menace of fly ash related health and environmental hazards. However, power

plants which had been earlier supplying fly ash to the cement industry free of cost have

for the last couple of years, as per the order of the Ministry of Environment and Forests,

55

started charging for fly ash from November 2009. The order has also made it mandatory

for the cement plants having captive power plants to supply 20 per cent of the fly ash

generated as free of cost to the small scale brick manufacturers, etc. within the vicinity of

100 kms of their plants. Both these have severely impacted the production cost of cement

and also seriously threatened the fly ash recycling potential in the country.

3.14 INITIATIVE STEPS TAKEN BY THE GOVERNMENT

Some major initiatives of the Government to boost the cement industry are as

follows:

• An expert appraisal committee under Ministry of Environment, Government of

India, has provided approval to India Cements to double its capacity and set up a

40 megawatt (MW) power plant at one of its facilities in Tamil Nadu. The proposed

expansion project will come up at Dalavoi in Ariyalur district (Tamil Nadu).

• The Competition Commission of India (CCI) has approved the proposed

acquisition of cement plants of Jaypee Cement Corporation Ltd, comprising an

integrated cement unit at Sewagram and grinding unit at Wanakbori in Gujarat by

Ultratech Cement Ltd.

• Giving impetus to green initiatives, Goa State Pollution Control Board (GSPCB)

has signed a memorandum of understanding (MoU) with Vasavadatta Cement, a

company with its plant in Karnataka. The cement manufacturer will use the

plastic waste collected from Goa as fuel for its manufacturing plant.

• The cement industry in India is globally competitive as the industry continues to

witness positive trends such as cost control, continuous technology upgradation

and increased construction activities.

• Major cement manufacturers in India are also increasingly using alternate fuels,

especially bio-energy, to fire their kilns. This not only helps to bring down production

costs of cement companies, but also proves effective in reducing emissions.

• With the ever-increasing industrial activities, real estate, construction and

infrastructure, in addition to the onset of various Special Economic Zones (SEZs)

being developed across the country, there is a growing demand for cement. 56

3.15 PROFILE OF SELECT CEMENT COMPANIES

ACC Ltd

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete.

ACC's operations are spread throughout the country with 17 modern cement factories,

more than 50 readymix concrete plants, 21 sales offices, and several zonal offices.

Since its inception in 1936, the company has been a trendsetter and an important

benchmark for the cement industry. ACC has a unique track record of innovative

research, product development and specialized consultancy services. The company's

various manufacturing units are backed by a central technology support services centre -

the only one of its kind in the Indian cement industry.

Ambuja Cements Ltd

Ambuja cements Ltd, is one of India’s leading cement manufacturers. The company,

initially called Gujarat Ambuja Cements Ltd, was founded by Narotam Sekhsaria in 1983

in partnership with Suresh. The cement industry is literally the building block of a nation.

In that context, Ambuja plays a key role in India’s development and its blueprint for the

future. It has always stayed on the fast track to growth and has gone on to become a

major player in the country’s cement sector. Ambuja Cement is an established brand in

India for Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC), with

significant footprints across western, eastern and northern markets of India. Their

customers range from individual house builders (IHB), major governments to global

construction firms.

Birla Corporation Ltd

Birla Corporation Limited (BCL) is the flagship Company of the M.P.Birla Group,

incorporated as Birla Jute Manufacturing Company Limited in the year 1919.

The company has products ranging from cement to jute goods, PVC floor covering, as

well as auto trims (jute felt-based car interiors manufactured with German technology).

The Cement Division of Birla Corporation Limited has seven plants, having an installed

capacity of 5.8 million tons. These plants manufacture varieties of cement, including

Ordinary Portland Cement (OPC), 43 & 53 grades, fly ash-based Portland Pozzolana

57

Cement (PPC), Portland Slag Cement (PSC) and low- alkali Portland Cement Recently,

the Company has started producing Sulphate Resistant Cement (SRC) and it has been

well accepted in the market.

Chettinad Cement Corporation Ltd

Chettinad Cement Corporation Ltd incorporated in 1962, is engaged in the

business of manufacturing cement. The company was promoted by Dr.Rajah Muthiah

Chettiar. In 1968, company started commercial production of its manufacturing unit

located in Puliyur, Tamil Nadu. Later in October 2001, CCCL set up a green field plant at

Karikkali. The company operates modern computer controlled LOESCHE lignite mill

and five stage pre-heater kiln and electronic packing plant. It is also equipped with

centralised control room for process control and elaborates on the minute information on

the production process so that any deviation can be promptly corrected. The company has

received ISO 9001:2000 and ISO 14001:2004 certification for its quality management.

Deccan Cements Ltd

Deccan cements Ltd was promoted and incorporated as a Public Limited

Company in the year 1979 by a technocrat entrepreneur Mr. M B Raju, who is also its

current Executive Chairman. Mr. Raju, who carries with him more than four decades of

rich and valuable experience in the cement industry, is an eminent, popular and highly

revered personality in the cement circle. He has been the pivot and main driving force

behind the steady and successful growth of DCL over the years. The cement plant which

commenced its commercial production in 1982 is located at Bhavanipuram in Nalgonda

District of Andhra Pradesh, nearly 165 km’s from Hyderabad. The plant manufactures a

wide variety of cements, including specialty cements for certain special applications, as

per requirements. The regular grades of cement manufactured include OPC 43, OPC 53,

PPC and PSC.

India Cements Ltd

India Cements Ltd was incorporated in the year 1946; it is the largest producer of

cement in South India. The company has four plants in Tamilnadu and four in Andhra

Pradesh, which cater to all major markets in South India and Maharashtra. They are the

58

market leaders with a market share of 28 per cent in South India. They have a distribution

network with over 10,000 stockists. Their brands include Coromandel King-Sankar

Sakthi- Raasi Gold, Coromandel-Sankar-Raasi, blended cements and Sulphate Resisting

Portland Cement. Their product includes ready mix concrete (RMC). The company is

indeed a pioneer enterprise during the post-independent era to become a public limited

company.

JK Cement Ltd

JK Cement Ltd started its commercial production in May 1975, in its first plant

Nimbahera in Rajasthan. The company was founded by Lala Kamlapat Singhania in the

year 1994. Today J. K. Cement is one of the largest cement manufacturers in North India.

It is also the second largest producer of white cement in India. JK Cement produces

ordinary Portland cement and Portland Pozzolana Cement. It markets white cement under

the name JK White and Camel.

Kakatiya Cement Sugar & Industries Ltd

Kakatiya Cement Sugar & Industries Ltd (KCSIL) earlier known as Kakatiya

Cements Limited (KCL) was incorporated in the Year 1979 for manufacturing ordinary

Portland cement. The Company was promoted by Shri P.Venkateswarlu, a reputed Civil

Contractor with equity support from Andhra Pradesh Industrial Development

Corporation. The project was completed as per the schedule and commenced its commercial

operations from Feb.'83. The capacity utilization has always been above the 100 per cent

mark and for many years it was 125 percentage of the licensed capacity. The operations

of the company have been profitable since its inception. The company mainly

manufactures and markets all kinds of portland cement, limestone, etc. KCL's major

clients are in Andhra Pradesh.Today, Kakatiya Cement is a reputed name in cement

Industry.

Madras Cements Ltd

Madras Cements Ltd (MCL) established in 1957, is a part of Ramco Group, a

well known business group of South India. It is based at Chennai. The company is the

fifth largest cement producer in the country. Ramco Super grade is the most popular

59

cement brand in South India. The first plant of MCL at Ramasamy Raja Nagar, near

Virudhunagar in Tamil Nadu commenced its production in 1962 with a capacity of 200 tones,

using wet process. Today Madras Cements Ltd is not only one of the most respected

cement companies in the country but also leads in giving the best return for the investors.

The main product of the company is Portland cement manufactured through the five

advanced production facilities spread over South India. The company also produces

Ready Mix Concrete and Dry Mortar products.

Mangalam Cement Ltd

Mangalam Cement Ltd was promoted in the year 1978 by the famed house of

Shri B. K. Birla, the most eminent and illustrious industrialist of the country. It is a

professionally managed and well established cement manufacturing company enjoying

the confidence of consumers because of its superior quality product and excellent

customer service. The company has recently commissioned its state-of-the-art new

cement plant with German technology for producing 7 lakh tonnes per annum at its

existing site at Morak, District. Kota in Rajasthan.

NCL Industries Ltd

NCL Industries Ltd Industries Ltd, an ISO 9001:2000 company of NCL Group,

made its debut in Indian Industrial scene way back in 1983 by setting up a 200 TPD

cement plant at Simhapuri in Nalgonda District, Andhra Pradesh. A well equipped

laboratory ensures consistency in quality of cement produced in its factory. NCL Group

of companies manufactures a range of building materials. The objective of the Group is

‘to provide comfortable housing at an affordable price’. The Company manufactures

various varieties of cement like 53 Grade - Ordinary Portland Cement, 53S Grade High

Compressive Strength for Railway Concrete Sleepers and Nagarjuna Super Cement -

Portland Pozzolana Cement- Premium Brand Super Cement blended with Fly Ash - for

all construction works.

OCL India Ltd

OCL India Ltd, (formerly ORISSA CEMENT LIMITED), widely known as OCL,

was incorporated as Public Limited Company on October 11,1949 under the Companies

60

Act, 1913 and obtained certificate of commencement of business on February 10,1950.

Initially, it was set up mainly for manufacturing cement. Later on, under a major

diversification programme it entered into the field of refractory manufacturing in the year

1954.OCL India started producing cement through wet process technology under the

brand name of ‘Konark’. Keeping a steady progress with time and technology, it has been

modernized to fully automate dry process plant in 1988. OCL commands the position of

market leadership in the state of Orissa since its inception and today it is the premier lead

brand in the state of Orissa. ‘Konark' brand cement enjoys brand advantage in the region.

It is a name cemented to Quality. Today, OCL enjoys a huge market share in India and

overseas extending to five continents across the globe.

Prism Cement Ltd

Prism Cement Ltd is a cement manufacturing company promoted by Rajan

Raheja Group. The company was incorporated in 1992 as Karan Cement. Later in the

year 1994, the name was changed to Prism Cement. It operates as one of the largest

single kiln cement plants in the country at Satna, Madhya Pradesh, equipped with state-

of-the-art machinery and technical support from F.L Smidth & Co A.S Denmark, the world

leaders in cement technology. The company has set up a packing unit at Allahabad to

cater to the requirement of customers in Eastern/Central U.P. The company manufactures

and markets Portland Pozzollana Cement (PPC) under the brand name ‘Champion’ which

is the company’s largest selling product. Prism’s OPC are in demand for specialized

cement concrete applications like high-rise buildings, bridges, manufacturing AC sheets,

pipes and poles etc.

Sagar Cements Ltd

Sagar cements Ltd has a rich history of providing high quality cement for over

3 decades. Started as a mini cement plant, it’s journey in production of cement started in

the year 1985 and is moving into higher gears with production getting into multi million

tonnes per annum. Sagar Cements is a prominent player in the field of cement in Andhra

Pradesh for over 3 decades adopting progressive manufacturing practices, whether it

relates to maintaining high standards of quality of its products or development of its

highly valued human resources or the need to keep the pollution to the barest minimum. 61

The Company manufactures various varieties of cement like Ordinary Portland Cement

(OPC) of 53 grade, 43 grade, Portland Pozzalona Cement (PPC) and Sulphate Resistant

Cement (SRC) to suit different needs of customers and all these products are being sold

under the Brand Name “Sagar” which has already become popular in Andhra Pradesh,

and now found its acceptance among the customers in the neighbouring States as well.

Shree Cement Ltd

Shree Cement Ltd is one of India's premier cement makers and the largest in

North India. The company is an energy conscious and environment friendly business

organization. They have three brands under their portfolio, namely Shree Ultra Jung

Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are

located at Beawar, and Ras in Rajasthan. They are also having the grinding units in

Khushkhera in Rajasthan. The company has its headquarters in Kolkata, India. Shree

Cement Ltd was incorporated in the year 1979. The company was promoted by Calcutta-

based industrialists P D Bangur and B G Bangur.

3.16 CONCLUSION

Indian Cement Ltd is the leading manufacturing sector in India. Our country is the

second largest producer of cement in the world. Cement production increased at a

compound annual growth rate (CAGR) of 9.7 per cent in the period from 2006 to 2013,

producing 272 million tons (MT). The production capacity is projected to reach 550 MT

by FY 2020. The cement industry has been expanding due to the increasing infrastructure

activities and demand from the housing sector. The cement industry will benefit from the

announcement made in the Budget 2014-15 for concentrating more on roads, metro rail

projects and urban infrastructure. The Budget has turned out to be positive for the cement

sector, as indirect benefit from government thrust on affordable housing and increase in

expenditures for infrastructure development will be more than offset by hike in fuel cost

due to hike in clean energy cess and custom duty on imported coal. The industry expects

incrementally better volume off take in FY 2015 and FY 2016, with long-term demand

likely to grow at 6-8 per cent CAGR given the cyclical upturn in the economy coupled

with an expected policy push to drive investments in the infrastructure sector.

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profile/shree-cement-ltd/508

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