CEMENT INDUSTRYShruti 6

Priya 7Shirish 8

HISTORY Lime and clay have been used as cementing

material on constructions through many centuries.

Romans are commonly given the credit for the development of hydraulic cement, the most significant incorporation of the Roman’s was the use of pozzolan-lime cement by mixing volcanic ash from the Mt. Vesuvius with lime.

Best know surviving example is the Pantheon in Rome.

In 1824 Joseph Aspdin from England invented the Portland cement

HISTORY CONT…. Indian cement industry dates back to 1914 - first unit

was set-up at ‘Porbandar’ with a capacity of 1000 tonnes .

Currently India is ranked second in the world.

Current per capita consumption in India - 131 kgs. as against world standard of 256 kgs. (2010-11)

55 - 60% of the cost of production are government controlled.

Major Players

UltraTech Cement Ambuja Cements ACC Shree Cements Birla Corp India Cements

Per Capita Consumption of Cement in India

Year

Per capita consumption (Kgs)

1951-52 9

1961-62 20

1971-72 27

1981-82 31

1991-92 62

2001-02 99

2010-11 131

Market Share

ACC ltd.

Grasim Industries

Ambuja CementsLtd.

UltraTech CementLtd.

India Cements

Jaypee Group

Shree Cement

J.K. Group

Madras Cements

Others

38.6

10.73

9.82

9.44

8.53

5.11

4.954.72

4.06

4.04

Government Policies The Ministry of Mines regulates the mining sector, while the

states own the minerals sector in their respective territories in India.

FDI of up to 100 per cent is allowed in the mining sector under the automatic route for cement production.

National Mineral Policy (NMP) 2008: The NMP aims to achieve the twin goals of large-scale prospecting with optimal mining and attracting investments with the latest technology.

The impact of the Union Budget 2010–11: Excise duty has been increased by 2 per cent.

Macro Factors

Demogr-aphics

Environ-ment

Energy

Chinindia

Geopoliti-cs

Public Policy

Sentiment

Market Overview

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-110

50

100

150

200

250

300

350

154.3 160.2 168

198.3211.8

235.9

303

All India cement capacity growth( in MT)

Opportunities

Increased government focus on infrastructure development.

Increased demand for housing segment.

Increase in development activity in commercial real estate (CRE) and other segment.

Huge potential for growth to increase per capita consumption of cement.

Future The annual demand for cement in India is consistently

growing at 8-10%. NCAER has estimated after an extensive study that the

demand for cement in the country is expected to increase to 244.82 million tones by 2012.

At the same time, the demand will be at 311.37 million ton, if the projections of the road and housing segments are met in reality.

The government has taken measures to increase the availability of indigenous coal for cement manufacturers to bring down production costs.