Saurabh final

CEMENT INDUSTRY IN INDIA

Presented by.

Saurabh Singh

MBA (SEM I)

CONTENTS

Introduction.

Evolution of Indian cement industry.

Bodies promoting industrial development.

Types and manufacturing.

Leading cement manufacturing industries in India.

Economic status of cement industry.

Issues concerning the cement industry.

Effect of cement manufacturing on environment.

PEST analysis.

PORTAL’S five foces.

SWOT analysis.

Objectives of study.

Research methodology.

References.

INTRODUCTION

Cement is the glue that holds the concrete together,

and is therefore critical for meeting society's needs

of housing and basic infrastructure such as bridges,

roads, water treatment facilities, schools and

hospitals.

India is the world's second largest producer of

cement after China with industry capacity of over

200 million tonnes (MT).

EVOLUTION OF INDIAN CEMENT

INDUSTRY

• A Kolkata based company started manufacturing cement in 1889.

• In 1914, Indian Cement Company Ltd was established in Porbandar.

• In 1927, Concrete Association of India was set up to create public awareness on the utility of cement.

• In 1956, price and distribution system of cement industry came under government control.

• After the economic reform in 1980’s the government control on cement industry was liberalized.

BODIES PROMOTING INDUSTRIAL

DEVELOPMENT

National Council for Cement and Building

Materials.

Indian Concrete Institute.

TYPES OF CEMENT

Ordinary Portland Cement (OPC).

Portland Pozzolana Cement (PPC).

Portland Blast Furnace Slag Cement (PBFS).

Oil Well Cement.

Rapid Hardening.

Sulphate Resisting Portland Cement.

White Cement etc.

PERCENTAGE CONTENTS OF CEMENTS

1.Ordinarily Portland Cement

Clinker - 90.50%

Gypsum - 4.00%

Fly ash - 5.50%

2.Portland Pozzolana Cement

Clinker - 66%

Gypsum- 4%

Fly ash - 30%

3.Portland Blast Furnace Slug Cement

Clinker - 70%

Gypsum- 6%

Slag - 24%

CEMENT MANUFACTURING

Cement is made out of limestone, shale, clay mined out

of quarry close to the plant. The raw material is crushed,

and then heated at temperature in excess of 1000 degree

Celsius in rotating kiln to become clinker. Clinker is then

mixed with gypsum and ground to a fine powder to

produce final grade of cement.

The technology is a continuous process and is highly

energy intensive.

The cost of Cement is 29% energy; 27% raw materials;

32% labour and 12% depreciation

TYPES MANUFACTURING PROCESS

There are three types of manufacturing process is

used to produce cement:-

Dry process (96.3% used).

Wet process (3.5% used).

Semi dry process (0.2% used).

FLOW CHART OF CEMENT MANUFACTURING

MAJOR PLAYERS IN THE INDIAN

CEMENT INDUSTRY

Company Production capacity

(In million tonnes)

plants

ACC 30.04 14

Ambuja 27.00 13

Ultratech 48.75 22

Lafarge India Pvt. Ltd. 7.75 04

India Cements 15.33 09

JK Group 07.47 04

Jaypee Group 24.50 14

Shree Cement Ltd. 13.50 06

Madras Cements 14.88 08

Birla Corp. 06.46 07

Source : Labour and Industrial Chronical, Survey of Cement Industry &

Directory 2012 : 3rd Edition

KEY FEATURES OF CEMENT INDUSTRY

India's cement production has increased at a

compound annual growth rate (CAGR) of 9.7

per cent during FY 06-13.

The government plans to spend US$ 1 trillion on

infrastructure in the 12th five year plan period

(2012-17).

Concrete is the second most consumed material after

water, with nearly three tones used annually for each

person on the planet.

https://www.equitymaster.com

ECONOMIC STATUS OF THE CEMENT

INDUSTRY

Growth Rate

Investments

Exports

FDI and GDP

GROWTH RATE

• India is the world’s second largest producer of

cement with total capacity of 370 million tonnes as

of financial year 2012-13.and expected to reach

550 million tonnes in 2020.


PRODUCTION AND PRODUCTION CAPACITY OF

CEMENT IN INDIA

INVESTMENTS

• Cement and gypsum products attracted FDI worth

US$ 2.23 billion between April 2000 and June 2014,

according to the Department of Industrial Policy and

Promotion.

• Jaypee Associates plans to invest US$ 640 million

to increase its cement capacity.


EXPORTS

• During 2007-08, the export of cement from India

touched the 2.16 million tonnes mark. However

during 2008-09, the cement export from India stood

at 1.46 million tonnes.

• In spite of seeing fall during 2008-09, the export

segment of the industry is expected to grow again

on account of various infrastructure projects that

are being taken up all over the world.


FDI AND CONTRIBUTION TO THE GDP

• 100% FDI is permitted in the cement industry.

• It contributes approximately 1.3% of GDP and the

industry is employing over 0.14 million people in

2013.


ISSUES CONCERNING THE CEMENT

INDUSTRY

•High Transportation Cost is affecting the competitiveness

of the cement industry Road is the preferred mode for

transportation or distances less than 250km. However,

industry is heavily dependant on roads for longer distances

too as the railway infrastructure is not adequate.

•Cement industry is highly capital intensive industry and

nearly 55-60% of the inputs are controlled by the

government.

MAJOR CEMENT DEMAND DRIVERS

64%

17%

13%

6%

housing sector

infrastructure

commercial&institutional

industrial

http://www.ibef.org/industry/cement-india.aspx

INDIA IS THE 2ND LARGEST CEMENT PRODUCER AS WELL AS

CONSUMER IN THE WORLD LED BY THE ENORMOUS GROWTH IN THE

INFRASTRUCTURE AND CONSTRUCTION SECTOR FOR THE LAST TWO

DECADES

Top Cement Consumers in

2013 (million tonnes)

Top Cement Producer in 2013

(million tonnes)

2048

72 650

500

1000

1500

2000

2500

2013

2013

300

2058

373

66 640

500

1000

1500

2000

2500

2013

2013

http://www.ibef.org/industry/cement-india.aspx

EFFECT OF CEMENT MANUFACTURING ON

ENVIRONMENT

Carbon di oxide emmision:-

limestone scrubber:

CaCO3 + SO3 +2H2O —> CaSO4 + 2H2O + CO2 ↑

lime scrubber:

Ca(OH)2 + SO3 + H2O —> CaSO4 + 2H2O

CO2 Emissions from Calcination:

CaCO3 + heat (to about 9508ᵒC)──> CaO + CO2

NITROGEN OXIDE EMISSIONS FROM CLINKER

MANUFACTURING:-

High-temperature combustion of fuels in the kiln line releases

nitrogen oxides (NOx), with the nitrogen being mainly

derived from the atmosphere but also to some degree from the

fuels themselves; a minor contribution also comes from some

types of raw materials

O + N2 ──> NO + N and

O2 + N ──> NO + O (unstable)

PEST ANALYSIS

• Coal rates, power tariffs, railway freight plays a very important factor in the price determination, interestingly, government control all of these prices

• Govt is one of the biggest consumers of the cement

POLITICAL

• Future of cement industry is very strong

• A lot of government infrastructure and housing projects are under construction

ECONOMIC

• Indian consumers prefer buying branded cement like LAFARGE, JAYPEE,BIRLA etc

• Industry will create 25 lakhs jobs in coming yearsSOCIAL

• Govt is acquiring new technology from Japan

• Emphasis is on creating highly energy efficient and environment friendly technology to produce cementTECHNOLOGY

PORTER’S FIVE FORCES FRAMEWORK

SWOT ANALYSIS

Strengths:

Second largest in the world in terms of capacity

Low cost of production: due to the easy availability of

raw materials and cheap labour

Highly Capital Incentive so difficult for small entrant.

Not much restriction by govt.

WEAKNESS:-

High Oil Prices, Cost of Power increase production cost.

Supply exceeds Production lead to competition in price.

Low Quality as compared to international standard but

improving.

OPPORTUNITIES:

Easy loan availability for housing finance

Increased investments in Infrastructure

Increased govt. outlay on BHARATNIRMAN,

GOLDEN QUADRILATERAL, and BRTS(bus rapid

transit) etc.

THREATS:-

Further Hike in Oil Prices.

Use of plastic engineering in construction.

Subprime market loss may affect.

REFERENCES

Building material and construction- B.C.PUNAMIA

Websites.

www.google.com .

http://www.ibef.org.

http://en.wikipedia.org/wiki/Cement.s


http://www.google.com/

http://www.ibef.org/

http://en.wikipedia.org/wiki/Cement.s

THANK YOU….

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