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“ANALYSIS OF THE INDIAN CEMENT INDUSTRY”
Project Report Submitted to Alliance Business School in Partial Fulfillment of the Requirements of the
Post Graduate Program in Business Management course.
Submitted by GROUP – 4
Under the Guidance of Dr. GERVASIO S. F. L. MENDES and Dr. R. VENKATAMUNI REDDY
FEBRUARY 2009
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DECLARATION
We hereby declare that the dissertation work titled “ANALYSIS OF THE INDIAN CEMENT INDUSTRY”, is a
record of independent study carried out by us under the guidance of Dr. Gervasio Mendes and Dr. R.
Venkatamuni Reddy, Faculty, Alliance Business School, Bangalore. This dissertation has not formed the
basis for the award previously of any Degree/ Diploma or any other similar titles of any university.
Date: 23.02.2009 BANGALORE
MEMBERS GROUP – 4 PGP – I ALLIANCE BUSINESS SCHOOL
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ACKNOWLEDGEMENT
We would like to express our profound gratitude and grateful thanks to Prof. Gervasio Mendes and Prof.
R. Venkatamuni Reddy for giving us the opportunity to study this course and undertake this research.
We thank them for showing interest in our research and giving us their valuable advice.
GROUP 4 Anjana Ashok, Divya Mohan, Jitesh Nangia, Priya Bhutada, Priyanshu Mishra, Swati Khurana
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CONTENTS
Chapter Chapter Name No. I Introduction
Evolution of the Indian Cement Industry Global Cement Industry Indian Cement Industry
Page No.
9 15 16
II
Research Design
Scope of the Study Objectives of the Study Statement of Problem Limitations of the Study
21Tools and Techniques for Data Collection 21 21 21 22
III
Industry Analysis
Status of the Indian Cement Structure of the Indian Cement Industry Porter’s Five Forces model
SWOT Analysis Industry over the periods Indian Cement IndustryReasons for the growth of the
Cement Industry Demand Drivers – 2008 30 26 28 28 24 25
IV
Analysis of Data
Analysis of Financial Ratios of Major Companies 36 Major Companies 41
4
Key issues Analysis of Key Financial Ratios of Minor Companies
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relating to the Cement Industry
48 55
V
Summary of Findings
Effects of The cement industry performance for the year 2008-09 Future prospects of the
CementRecession on the Indian Cement Industry Bibliography 66 68 62 59Industry
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LIST OF TABLES
Table No.
1.1 1.2 1.3
TITLE
Status of the Indian Cement Industry Home Loan Rates and disbursement of loans Projects under the
NHDP Major Companies
Page No
25 32 34
1.4 1.5 1.6 1.7 1.8 1.9 1.10
Industry Standards (Ratios) – North Region Industry Standards (Ratios) – South Region Analysis for the
Year ended 2007-2008 Analysis for the Year ended 2006-2007 Analysis for the year ended 2005-2006
Analysis for the Year ended 2004-2005 Analysis for the Year ended 2003-2004 Minor Companies
41 41 42 43 44 46 47
1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19
Industry Standards (Ratios) – North Region Industry Standards (Ratios) – South Region Analysis for the
Year ended 2007-2008 Analysis for the Year ended 2006-2007 Analysis for the Year ended 2005-2006
Analysis for the Year ended 2004-2005 Analysis for the Year ended 2003-2004 Region-wise production of
cement Region-wise cement consumption
48 49 49 50 51 53 54 60 61
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LIST OF GRAPHS AND CHARTS
Sl No.
2.1 2.2 2.3 2.4 2.5 2.6 2.7
TITLE Diagrams showing:
Gigatons/yr of cement produced/used Percentage of yearly worldwide cement produced/used
Percentage change in cement production/usage Trends in the Cement Industry during Five-Year Plans
Indian Cement Industry Demand Drivers - 2008 Loan Rates and disbursement of loans Region-wise
production increase for December 2008 Region-wise consumption and YoY growth percentage Cement
prices
Page No.
11 12 13 25 30 33 60
2.8 2.9
61 65
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CHAPTER I
INTRODUCTION
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GLOBAL CEMENT INDUSTRY
Cement is a cyclical industry in which long periods of growth are interspersed by shorter periods of
decline. Over recent decades, different geographical markets have experienced different cycles,
meaning that it is comparatively rare for their periods of decline to coincide. This also means that as a
rule the number of markets in growth at any one time will exceed those in decline. This is a significant
factor for the long-term outlook of the cement sector, meaning that growth prospects for the industry
are encouraging, despite the 2007 downturn in the US. The key growth drivers for cement consumption
are population growth (increasing demand for housing, commercial building and infrastructure) and
economic growth (driving up the consumption of cement per capita). Rapid urbanization and the
booming infrastructure have lead to an increase in construction and development across India,
attracting even the global players. Cement is a global industry made up of local markets. When a
product is both heavy and cheap, transportation costs become a key factor in determining its
profitability, so cement plants need to be close to customers. This is why global cement industry leaders
are seeking to be present in as many local markets as they can, resulting in the growing dominance of
the industry by its largest businesses According to the leading manufacturer of cement production
equipment in the world, FLSmidth, world cement consumption is set to rise on average between 3.6%
and 4.8% per year in the coming years. At the same time, the Portland Cement Association (the US
cement sector’s trade body) is expecting world cement consumption to average more than 6% annually
in the next two years, reaching 2.9 billion metric tons by 2008 (estimation Oct 2007). While much of this
growth is set to come from emerging growth markets in Central and Eastern Europe and Asia, growth in
mature markets also looks healthy. The recent years have witnessed a surge of foreign direct investment
in the cement sector. International players like France's Lafarge, Holcim from Switzerland, Italy's
Italcementi and Germany’s Heidelberg Cements together hold more than a quarter of the total capacity.
Holcim, one of the world's leading suppliers of cement, has 24 plants in the country and enjoys a market
share of about 23 –25 per cent. It will further invest about US$ 2.49 billion in the next five years to set up
plants and raise capacity by 25 MT in the country. Holcim
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has a global sale worth about US$ 20 billion, where India contributes US$ 2 billion –2.5 billion.
Italcementi Group, which acquired full stake in the K K Birla promoted Zuari Industries' cement, for US$
126.62 million in 2006 plans to invest US$ 174 million over the next two years in various greenfield and
acquisition projects.
The French cement major, Lafarge which acquired the cement plants of Raymond and Tisco with an
installed capacity of 6 MTPA a few years back plans to double its capacity to 12 MT over the next five
years by adopting the greenfield expansion route.
Global demand to rise 4.7% annually through 2010 Global demand for cement is forecast to grow 4.7
percent annually to 2.8 billion metric tons in 2010. China, which is already by far the largest market for
cement in the world, will register the biggest gains in terms of the total amount of cement sold. Other
developing parts of the Asia/Pacific region and Eastern Europe, as well as a number of nations in the
Africa/Mideast and Latin America regions, will also record aboveaverage cement market gains, fueled by
a robust construction outlook. Vietnam, Thailand, the Ukraine, Turkey and Indonesia will record some of
the strongest increases in percentage terms. Market advances will be less robust in the developed areas
of the US, Japan and Western Europe, with maintenance and repair construction accounting for much of
the growth in cement demand through 2010. However, a pickup a construction spending in Germany
and Japan following an extended period of decline will help bolster overall developed world market
growth. Sales of straight portland cement, which currently accounts for more than three-quarters of all
cement demand worldwide, will be less robust but still healthy, benefitting from continued growth in
construction spending worldwide and further advances in manufacturing technology.
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Fig. 2.1: Gigatons/yr of cement produced/used
Source: Industry data
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Fig. 2.2: Percentage of yearly worldwide cement produced/used
Source: Industry data Ready-mix concrete to be fastest growing end use the ready-mix concrete market
is expected to be the fastest growing end-use segment. Ready-mix concrete companies account for a
comparatively small but increasing share of total cement demand in a number of fast-growing
developing countries, and suppliers will benefit from an extremely favorable market outlook in China,
where large-scale construction projects will require significant amounts of ready-mix concrete through
2010. Consumer demand for cement will also climb at an above-average pace, stimulated by rising
personal income levels in developing parts of the world, where consumer sales can account for half
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or more of total cement demand, and by new product introductions in mature developed world
markets.
. Fig. 2.3: Percentage change in cement production/usage
Source: Industry data
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INDIAN CEMENT INDUSTRY
Cement is a binder which sets and hardens independently, and can bind other materials together. The
word "cement" traces to the Romans, who used the term "opus caementicium" to describe masonry
which resembled concrete and was made from crushed rock with burnt lime as binder. Cement is an
essential component of infrastructure development and most important input of construction industry,
particularly in the government’s infrastructure and housing programs, which are necessary for the
country’s socioeconomic growth and development. The cement industry in India dates back to 1914,
with the setting up of its first unit in Porbunder. It is considered as one of the core infrastructure
industries. It is the second largest producer of cement in the world just behind China, with industry
capacity of over 200 million tonnes. It is consented to be a core sector accounting for approximately
1.3% of GDP and employing over 0.14 million people. Also the industry is a significant contributor to the
revenue collected by both the central and state governments through excise and sales taxes. The
cement industry has continued its growth trajectory over the past seven years. Domestic cement
demand growth has surpassed the economic growth rate of the country for the past couple of years.
The growth rate of cement demand over the past five years at 8.37 % was higher than the rate of
growth of supply at 4.84% as also the rate of growth of capacity addition during the same period.
Demand for cement in the country is expected to continue its buoyant ride on the back of robust
economic growth and infrastructure development in the country.
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EVOLUTION OF THE INDIAN CEMENT INDUSTRY
Until 1982, the government controlled the price and distribution of the cement since the production
wasn’t sufficient to meet the entire demand. The industry was partially decontrolled in 1982 and this
gave impetus In 1889, Calcutta firm attempted to its pace of growth. HIGHLIGHTS to produce cement
from Argillaceous (kankar). The first organized effort on mass scale to manufacture Portland cement
commenced in Madras in It was in 1914,1904 by South India Industries Limited, but it failed. that the
first commissioned cement-manufacturing unit in India was set up by India Cement Company Limited at
Porbandar, Gujarat with an Theinstalled capacity of 10,000 tonnes and production of 1000 tonnes.
problem of supply outstripping demand was significant in early period of the industry. This led to a price
war between the producers forcing many to sell below its production cost and also many into
liquidation. Then the government of India intervened into the market and referred the cement industry
to the Tariff Board. The board recommended protection by government and cooperation among
existing cement units. These events resulted in formation of Indian Cement Manufacturers’ In 1927,
ConcreteAssociation in 1925 (the price regulator). Association of India was formed whose two main
objectives were to educate public about the use of cement and to play an active role in popularizing
Indian cement.
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This was followed by the formation of Cement Marketing Company of India Limited in 1930 to promote
and control the sale and distribution of cement at regulated prices.
After all these initiatives, the sales increased along with the increase in the number of plants.
In 1936, eleven companies, except Sone Valley Portland Cement Company Limited, merged to form
Associated Cement Company Limited (ACC).
In 1937, Dalmiya Jain Group set up five factories with installed capacity of 575000 tonnes and ACC
added four more plants.
The price and distribution control system on cement, implemented in 1956, aimed at ensuring fair prices
to producers and consumers all over the country. Although due to slow growth in capacity expansion
and rising cost in the industry, the government had to increase the fixed price several times.
Growth was low due to inadequate retention price and lack of adequate financial resources to the
existing companies.
Direct control by government over CONTROL PERIOD (1969-1982) production, capacity and
distribution of cement. Indirect intervention took the form of price control. Due to maintained slow
development, the uniform price imposed by the government was substituted by a three-tier price
system in 1979. Different prices were assigned to cement produced in low, medium and high cost plants.
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To sustain an accelerating course, the government in 1988 subsequently introduced the levy quota as
low as 30% for units established before 1982 and the retention price had increased substantially.
In 1987, the Cement Manufacturers’ Association and the government decided that there was no further
necessity for a maximum price ceiling.
In 1989, all price and distribution TOTAL DECONTROL (1989 onwards) controls on sale of cement
were withdrawn. Freight pooling was abandoned and a subsidy scheme to ensure availability of cement
at reasonable prices in remote and hilly regions of the country was worked out. De-licensing under
the policy of economic liberalization was done in 1991. Growth was seen from 91 plants and 43 million
tonnes of production in 1989-90 boosting to 132 plants and 161.66 million tonnes production Total
capacity utilization for the industry hasin 2006-07 (CMA 2007). also increased from 78% to 91% during
the same period.
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CHAPTER II
RESEARCH DESIGN
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STATEMENT OF THE PROBLEM During the last few years, liberalization of economic policies in India has
resulted in a business climate that has favoured rapid growth in almost all segments of Indian industry
and commerce. During the past decades, the Indian financial market has witnessed considerable
maturity. The primary reason for this is the (LPG) process in1991. The entire process has brought in a lot
of changes in various aspects of financial market. During the last few years savings of country was
around 23%, which was one of the highest in world. All this has played its part in the growth and
development of the To analyze the evolution cement industry. OBJECTIVES OF THE STUDY of the
cement industry. To compare the financial ratios of the leading and the lagging companies in the
industry. To find the reasons for the growth of the industry.
METHODOLOGY OF STUDY The whole study can be termed as a desk research. Hence there is no field
work and collection of primary data for this research except for secondary information obtained by the
medium of internet, journals and magazines. The top 5 and the bottom 3 performers of the industry
have been chosen on the basis of their sales in the previous year. SOURCES OF DATA Only secondary
data was collected from the internet, company websites, magazines and various articles. Capitaline
databases have been the main source of information for The study is limited to company analysis.
LIMITATIONS OF THE STUDY: selection of top 5 and bottom 3 cement companies in India. The number
of years used for comparing the performance of these companies is 5.
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CHAPTER III
INDUSTRY ANALYSIS
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STRUCTURE OF THE INDIAN CEMENT INDUSTRY
It is a fragmented industry. There are 56 cement companies in India, operating 124 large and 300 mini
plants, where majority of the One of production of cement (94%) in the country is by large plants. the
other defining features of the Indian cement industry is that the location of limestone reserves in select
states has resulted in it’s Since cement is a high bulk and lowevolving in the form of clusters. value
commodity, competition is also localized because the cost of transportation of cement to distant
markets often results in the product Another distinguishingbeing uncompetitive in those markets.
characteristic comes from it being cyclical in nature as the market and consumption is closely linked to
the economic and climatic cycles. In India, cement production is normally at its peak in the month of
March while it is at its lowest in the month of August and September. The cyclical nature of this industry
has meant that only large players are able to withstand the downturn in demand due to their economies
of scale, operational efficiencies, centrally controlled distribution systems and geographical
diversification.
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Status of the Indian Cement Industry over the periods
Table 1.1 - Status of the Indian Cement Industry over the periods
Fig. 2.4 - Trends in the Cement Industry during Five-Year Plans
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SWOT ANALYSIS
Second largest in the world in terms of capacity: In a) Strengths: India there are approximately 124
large and 300 mini plants with installed capacity of 200 million tonnes. Low cost of production: due to
the easy availability of raw materials and cheap labour.
Effect of global recession on real estate: The realb) Weakness: estate prices are stabilizing and facing
steady slowdown especially in metros. There are approximately one hundred thousand completed flats
without occupancy in Bangalore. There has been drastic reduction in property prices due to
reduced demand and increased supply. Demand-Supply gap, overcapacity: The capacity additions
distort the demand-supply equilibrium in the industry thereby affecting profitability. Increasing cost of
production due to increase in coal prices. High Interest rates on housing: The re-pricing of the interest
rates in the last four years from 7% to 12% has resulted in the slowdown Strong growth of in residential
property market. c) Opportunities: economy in the long run: Indian economy has been one of the stars
of global economics in the recent years, growing 9.2% in 2007 and 9.6% in Increase2006. However,
India is facing tough economic times in 2008. in infrastructure projects: Infrastructure accounts for 35%
of cement consumption in India. And with increase in government focus on infrastructure spending,
such as roads, highways and airports, the Growing middle class: Therecement demand is likely to grow
in future. has been increase in the purchasing power of emerging middle-class with rise in salaries and
wages, which results in rising demand for better quality of life that further necessitates infrastructure
development and hence increases the demand for cement. 25
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Technological changes: The Cement industry has made tremendous strides in technological up gradation
and assimilation of latest technology. At present ninety three per cent of the total capacity in the
industry is based on modern and environment-friendly dry process technology and only seven per cent
of the capacity is based on old wet and semi-dry process technology. The induction of advanced
technology has helped the industry immensely to conserve energy and fuel and to save materials
substantially and hence reduce the cost of production.
Imports from Pakistan affecting markets in Northern India:d) Threats: In 2007, 130000 tonnes in 2008,
173000 Metric tones of cement was exported to India. This was done to keep the price of cement under
Excess overcapacity can hurt margins, as well as prices.check.
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PORTER’S FIVE FORCES
REASONS FOR THE GROWTH OF CEMENT INDUSTRY
The domestic cement industry is highly insulated from global cement markets. Exports have been
constant at about 6% of total cement demand for past few years. With the Government of India
intervention, making cement duty free, cement is being imported from neighbouring countries.
However, due to logistics issues and lack of port handling capabilities imports of cement will remain
negligible and do not pose a threat to domestic industry. Earlier government sector used to consume
over 50% of the total cement sold in India but in the last decade, its share has come down to 35%.
Demand for cement is linked to the economic activity in any country. Broadly, it can be categorized into
demand for housing construction (homes, offices etc.) and infrastructure creation (ports, roads, power
plants etc). The real driver of cement demand is infrastructure development; hence cement demand in
emerging economies is much higher than developed countries where the demand has reached a 27
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plateau. In India too, the demand for cement will be affected by spending on infrastructure (including
housing.) Cement is a bulky commodity and cannot be easily transported over long distances making it a
regional market place, with the nation being divided into four regions. Each region is characterized by its
own demand-supply dynamics. The Southern region dominated the cement consumption at 44.5 mn
tonnes in FY 07, accounting for about 30% of total domestic cement consumption. During FY 03-07,
Southern region has witnessed highest CAGR of cement demand at 10.4% followed by Northern and
Eastern regions at 8.9% and 9%, respectively. Apart from meeting the entire domestic demand, the
industry is also exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was
5.14 million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35 million
tonnes. The Planning Commission for the formulation of X Five Year Plan constituted a 'Working Group
on Cement Industry' for the development of cement industry. The Working Group has identified
following thrust areas for improving demand for cement; i. ii. iii. Further push to housing development
programmes; Promotion of concrete highways and roads; and Use of ready-mix concrete in large
infrastructure projects.
Further, in order to improve global competitiveness of the Indian Cement Industry, the Department of
Industrial Policy & Promotion commissioned a study on the global competitiveness of the Indian
Industry through an organization of international repute, viz. KPMG Consultancy Pvt. Ltd. The report
submitted by the organization has made several recommendations for making the Indian Cement
Industry more competitive in the international market.
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Indian Cement Industry Demand Drivers - 2008
Graph 2.5 - Indian Cement Industry Demand Drivers - 2008
(Source CMA)
Housing and infrastructure sectors constitute a major part of the total demand for cement in India.
These two sectors have been further analysed. HOUSING Housing, besides being a very basic
requirement for the urban settlers, also holds the key to accelerate the pace of development.
Investments in housing, like any other industry, have a multiplier effect on income and employment.
Construction sector employment is growing at the rate of 7% per annum. Housing provides
opportunities for home-based economic activities. The Indian Housing sector has grown by leaps and
bounds in the last few years. The total home loan disbursements to this sector has risen from Rs 19,723
crore in the year ended 2000 to a massive Rs 2,52,932 crore in the year 2008.This robust growth has
been triggered by a number of factors. Some of which are: • Tax rebates on housing loans • Continued
growth in population • Decrease in number of people per household (average size of household) • Rise
in disposable income levels • Lower interest rates and easy availability of housing finance. 29
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Also the Housing Finance Companies and banks have introduced various schemes to attract the young
generation borrower. Free home insurance, lower rates for purchase of consumer durables, household
goods, and refinance options are some of the noteworthy schemes that the institutes have come up
with to attract the borrowers. The Indian housing industry is highly fragmented, with the unorganized
sector, comprising small builders and contractors, accounting for over 70% of the housing units
constructed and the organized sector accounting for the rest. The organized sector comprises large
builders and government or government affiliated entities. The housing market witnessed a frenzied
boom in the early nineties on the back of a booming stock market and a liberalization process that was
kicked off in 1991. The stock market and real estate markets crashed in quick succession - 1994 and
1995 respectively, followed by a prolonged period of about 8 years of little or no appreciation in real
estate. The crash, accentuated by high inflation and high interest rates, not only kept speculative inflows
out but also kept genuine home seekers at bay. However, reversal in that trend is being witnessed in the
past 3-4 years because of several reasons. One of the most important reasons is that the rural people
are moving from thatched mud units to pucca (brick and mortar) structures. With increasing rural
affluence, demand for cement for construction of houses in villages has gone up significantly overt the
last few years. The cement industry is expecting around 50 per cent of the overall demand to come from
the rural housing sector during the current year and beyond. Rural people, especially in the most
underdeveloped sates, are increasingly replacing thatched mud hutments and switching over to pucca
structures. While a marked increase in demand is being seen in the rural parts of predominantly
underdeveloped states such as Bihar, Chhattisgarh and Uttar Pradesh, the hill states of Uttarakhand,
Himachal Pradesh and the north-east are also seeing a spurt in demand. The Centre's latest estimates
peg the estimated shortage of houses in rural areas at around 15 million as against an overall shortage
of 22 million dwelling units in the rural and urban areas put together. The Centre, under its Bharat
Nirman programme, expects over six million houses to be built in rural areas over the next four years.
Rural housing projects undertaken by about 15 states through their own capital subsidy or credit-cum-
subsidy schemes have also resulted in rural housing coverage going up during the last few years. These
states, including Tamil Nadu, Andhra Pradesh,
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Karnataka, Gujarat, Uttarakhand, Jharkhand, Sikkim, Meghalaya and Punjab, have together constructed
about 27 lakh houses from 2001 to 2005, according to Planning Commission estimates. The cement
industry recorded another year of double digit demand growth (10 per cent for 2006-07). The demand
buoyancy is witnessed across sectors with increased focus on infrastructure development, rising
industrial activity, and strong real estate demand from commercial and residential sectors. Another
reason is the fall in interest rates, which have also greatly contributed to the growth of the housing
sector thus fuelling the demand for cement and in turn its production. The following graph gives a clear
indication of the rise in the quantum of loans lent as against the rate of interest prevailing over a period
of time. Table 1.2 – Home Loan Rates and disbursement of loans
Interest Rate (in %) 2000 13.00 2001 12.15 2002 11.35 2003 09.85 2004 07.65 2005 07.50 2006 08.50
2007 11.00 2008 9.00 Source: RBI Trend and Progress Reports Year
Quantum of Loan lent in Rs Crore 19,723.38 22,425.09 29,359.29 51,672.70 89,449.00 1,34,276.00
1,79,060.00 2,24,481.00 2,52,932.00
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Fig. 2.6 - Home Loan Rates and disbursement of loans INFRASTRUCTURE Infrastructure projects along
with commercial constructions accounts for about 35% of the total cement consumption in India. With
the government increasing its focus on infrastructure spending, particularly on roads, ports and airports,
the cement demand is likely to go up in the near future. Since India began opening up in 1991, until
recently, the progress of infrastructure has been very poor and has been a zigzag process. But if one
considers the following developments, it would be visible that India is turning the corner on the
infrastructure question and in turn spurring the demand for cement. Firstly, there are over a hundred
Special Economic Zones (SEZs) in India either in operation or under construction. Many international
companies, like Nokia and automotive makers like Volvo, are actually producing in the SEZs.
Construction has been taking place – land clearance has been done to relocate squatters or farmers
away from their land and this has already happened in the last five years or so.
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The other thing to look at is the organized retail sector in India. There are well over 500 retail malls
either already operating in India or in various stages of construction and this is also new in the last three
to five years. The various road projects under the National Highway Development Program (NHDP Phase
I and II) initiated by the previous government are being successfully implemented by the present
government. Further, government has also announced new projects namely NHDP Phase, III, IV, V and
VI, which include having four lanes on high density highways, upgradation of existing highways, six-
laning of roads under NHDP Phase I and also 1,000kms of new expressways. The total cost of these new
projects is about Rs. 1,075 billion and is expected to be completed by FY2012. A total demand of close to
50 million tonnes of cement is expected from the above projects. Table 1.3 – Projects under the NHDP
Moreover, the government has set aside over USD100 billion for infrastructure spending in between
2007 and 2012. New airports have come up and the efforts are on to modernize the existing ones. Thus,
infrastructure is getting its share of attention and in turn spurring demand for cement.
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CHAPTER IV
ANALYSIS OF DATA
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The Indian Cement Sector is divided on the basis of regional INDIA – operations. Companies fall
within the categories of: MAJOR – NORTH INDIA – MAJOR – SOUTH INDIA – MINOR – NORTH INDIA –
MINOR – SOUTH
MAJOR COMPANIES The top 5 cement companies have been selected based upon their performance in
the last financial year. The net sales turnover has been used to judge performance. The 5 major
companies are – Northern Region - ACC, Ultra Tech Cement, Ambuja Cement, Shree Cement Southern
Region – India Cement
ACC LIMITED Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete
technology. A prominent overseas presence and figuring on the elite list of consumer super brands of
India but most importantly ACC has been amongst the first Indian companies to make environmental
protection, it is a cornerstone of its corporate objectives. The historic merger of ten existing cement
companies led to the establishment of ACC - melding into a cohesive organization in the year 1936 at
Maharashtra. It’s a big company in cement manufacturing and offers the services of Ready mixed
concrete and Consultancy service. This company is listed by Bombay Stock Exchange, National Stock
Exchange and in London. The company received an award as 'Good Corporate Citizen' for the year 2005-
2006. During the year 2007 company acquired 100 % of the equity stake of Lucky Minmat Private
Limited for Rs 35 crores and also acquired 14.3 % equity stake in Shiva Cement Limited. Meanwhile the
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company divested its entire equity shares in Almatis ACC Ltd to the Almatis group. The overseas contract
with YANBU Cement Company in the kingdom of Saudi Arabia is successfully ongoing relationship from
last 28 years and has been renewed up to February 28, 2011. The company has developed
comprehensive expansion plans to meet the requirements of its agenda for growth with a view to attain
leadership position in the cement industry, for that company made a project for augmentation of
clinkering and cement grinding. As a result with this the capacity of Gogal works stands increased to 4.4
Metric Tonnes Per Annum. ACC planed to expand the unit of Bargarh works capacity to 2.14 MTPA
together with 30MW captive power plant is underway. The implementation of the projects for
augmenting grinding capacity at Madukkarai by 0.22 MTPA and New Wadi by 0.60 MTPA. Ready mix
concrete business has been identified as an area of strategic priority. ACC commissioned a Wind Energy
Farm in Tamil Nadu to promote clean and green technology. The company foresees substantial scope for
growth of this business in India and has accordingly finalized plans to expand Ready Mix business in
major cities including Tier1 and Tier 2 cities. ACC realizes the growth potential of Ready Mix, the
company has 26 plants for the same and enhance to 46 in 2008. The company has major capital
expenditure projects in hand, as a result of these projects the total cement capacity of the company will
increase to about 30.4 MTPA by end of 2010 with total outlay of Rs 4,000 crores. ULTRATECH CEMENT
LTD. UltraTech Cement Limited was incorporated as a public limited company on 24th August 2000, as
“L&T Cement Limited” a 100% Subsidiary of Larsen & Toubro Limited. The name of the Company was
changed to UltraTech CemCo Limited with effect from 19th November 2003. The name of the company
was again changed to UltraTech Cement Limited with effect from 11th October 2004. UltraTech Cement
Limited has an annual capacity of 18.2 million tonnes. It manufactures and markets Ordinary Portland
Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures
ready mix concrete (RMC). UltraTech Cement Limited has five integrated plants, six grinding units and
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UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span countries
around the Indian Ocean, Africa, Europe and the Middle East. INDIA CEMENTS India Cements was set up
in 1946 and the company's first plant was established in 1949 at Sankarnagar, Tamil Nadu. Since the
India Cements Ltd. has been established, it has risen in stature to become the biggest cement producer
in south India. India Cements has 7 plants spread across Andhra Pradesh and Tamil Nadu. The total
production capacity of the plants is around 9 million tons per year. In south India, India Cements
Company has a 28% market share and it plans to achieve a market share of around 35% in the near
future. Around 90% of India Cements Company's produce is sold in the Tamil Nadu and Kerala markets.
India Cements Company has a distribution network which is very strong - it has over 10,000 stockists out
of which around 25% is devoted to the company. The India Cements Ltd. owns famous brands such as
Rassi Super Power, Sankar Super Power, and Coromondal Super Power (In the year of 1990, ICL acquired
Coromandel Cement plant at Cuddapah,consequently installed capacity rose to 2.6 million tonnes per
annum). The India Cements Company has subsidiary companies which include ICL Financial Services,
Industrial Chemicals & Monomers, ICL International, and ICL Securities. In 1997 India cements acquired
Aruna Sugars Finance Ltd which was later renamed as India Cements Capital & Finance Ltd. It also
acquired Cement Plant of Visaka Cement Industry, at Tandur, Ranga Reddy district of Andhra Pradesh
with Installed capacity 9,00,000 Tonnes.The cement division of Raasi Cement (RCL) was vested with the
company from April.1998 under a scheme of arrangement India Cements has established itself as a
leading cement manufacturing company and as it plans to expand its production capacity, the
company's position in the market is sure to rise in the near future. AMBUJA CEMENT The company's
cement plant was commissioned in 1985. It was set up in technical collaboration with Krupp Polysius,
Germany, Bakau Wolf and Fuller KCP. The company got necessary approvals for setting up another
cement plant with 1 million tonne capacity per annum at Himachal Pradesh in the year 1991. The
Company undertook bulk cement transportation, by sea, to the major markets of Mumbai, Surat and
other deficit zones on the West Coast. Transportation was to be 37
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carried out by three specially designed ships during the year 1992. During the year 1994, the company's
Muller location 1.5 million tonne cement project with clinkeriation facility at site in H.P and grinding
facility both at Suli & Ropar in Punjab was bespoken. In 1997, Kodinar plant of the company was
originated its commercial production with an enhanced capacity. In the last decade the company has
grown tenfold. It was the first company in India to introduce the concept of bulk cement movement by
the sea transport. The company's most distinctive attribute, however, is its approach to the business.
Ambuja follows a unique homegrown philosophy for successful survival. Ambuja is the most profitable
cement company in India, and one of the lowest cost producers of cement in the world. The company
was awarded for its credit, the National Award for commitment to quality by the Prime Minister of India,
National Award for outstanding pollution control by the Prime Minister of India, Best Award for highest
exports by CAPEXIL and Economic Times - Harvard Business School Association Award for corporate
excellence in different years. The company was adjudged as the top Indian company in the cement
sector for the Dun and Bradstreet - American Express Corporate Awards 2007. The company developed
a unique homespun channel management model called Channel Excellence Programme (CEP) for
marketing their product. Over 7000 dealerships and 20,000 retailers across India are covered under this
model. The company name was changed from Gujarat Ambuja Cements Limited to Ambuja Cements
Limited on April, 2007, the word Gujarat was dropped to reflect the true geographical presence of the
company SHREE CEMENT LTD. Shree Cement Ltd., belonging to the Calcutta-based industrialists P D
Bangur and B G Bangur is one of the largest cement producer in Rajasthan was incorporated in the year
1979. Shree has two plants in Beawar, Rajasthan with 2.6 million tonne installed capacity. Shree's is the
largest single location manufacturer with production in Northern India. The company markets its
products under two brands- Shree Ultra Ordinary Portland Cement (OPC) and Shree Ultra Red Oxide
Cement. The company has undertaken new activities in the field of leasing and hire purchase during
199495. The company has tied up with Christian Pfeiffer & Company, Germany, for installing a
horizontal impact crusher to pre-crush clinker before using it in the cement mill to upgrade cement
output and save energy. It has also tied up with IKN, Germany, to incorporate their KIDS system in the
clinker cooler to improve efficiency of the clinker cooler and save heat. The company has been awarded
by KPMG 38
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Quality Registrar, USA certificate of ISO 9002 during the year. In Oct.'97, the Raj Cement was
commenced production. The company has successfully commissioned its new cement plant of 1.24
million tonne capacity and has already attained 100% capacity utilization. The company's modernization
and expansion plan to increase its installed capacity from 20 to 26 lakhs TPA was implemented in
December 10,2001,. During 2001-02 the company exerise to commission a captive 36 MW thermal
power project at a cost of Rs.120 crores. An EPC contract was signed with Thermax Ltd in September,
2001 and the civil work commenced in October 2001 and the project is expected to be commissioned by
December, 2002. During 2004-05 the company was in the process of setting up a new plant with a
capacity of 1.2 MTPA which is scheduled to start functioning by the third quarter of this year at Village
Ras, about 32 kms away from the existing location. This plant is designed to produce a premium grade of
cement 'Bangur Cement'. The estimated project cost was Rs.304 crores. During August 2005 the
company has commissioned a 6 MW Captive Thermal Power Plant at its cement manufacturing facility
Rajasthan. The total capacity of its Captive Thermal Power Plant has gone up from 36 MW to 42 MW.
The additional capacity would enable Company to meet requirement of power for its upcoming 'Bangur
Cement Project'.
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INDUSTRY STANDARDS North Region:
Table 1.4 – Industry Standards (Ratios) – North Region
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBIDTM (%) ROCE (%) RONW (%) Source: Capitaline South Region: 1.06 10.94 29.57 6.29 23.45
23.17 31.28 1.07 11.27 30.9 9.59 24.16 27.03 36.27 0.9 10.41 24.61 3.21 15.63 10.87 14.37 0.89 10.54
24.02 1.49 14.61 7.82 4.23 Latest 1.6 0.85 2006 0.98 0.95 2005 1.81 0.79 2004 3.53 0.72
Table 1.5 - Industry Standards (Ratios) – South Region
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBITM (%) ROCE (%) RONW (%) Source: Capitaline 0.85 7.59 14.1 2.1 11.12 9.72 9.13 0.82 7.18
13.65 2.25 11.84 10.36 10.92 0.73 7.08 13.31 1.24 7.56 5.78 1.5 0.73 7.08 13.31 1.24 7.56 N/A N/A 0.71
7.64 13.38 0.73 6.27 N/A N/A Latest 1.88 1.07 2006 2.06 1.07 2005 2.61 1.08 2004 2.88 1.08 2003 3.14
1.14
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Table 1.6 - Analysis for the Year ended 2007-2008
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBIDTM (%) ROCE (%) RONW (%) 1.53 11.58 31.19 24.28 26.74 41.34 35.12 1.29 12.05 31.42 20.91
28.95 40.69 45.18 1.01 11.87 12.44 8.69 30.45 24.36 32.01 1.32 13.06 54.91 26.14 34.3 42.49 29.02 1.29
14.67 64.51 8.08 36.84 24.8 46.19 ACC December 0.19 0.97 Ultra Tech March 0.74 0.65 India Cements
March 0.96 1.88 Ambuja Cement December 0.15 1.05 Shree Cement March 2.01 2.02
Ambuja cement maintained the least debt to equitySource: Capitaline ratio in this period which was
also below that of the industry standard. Thus we can say that the company was more dependent on its
equity. Considering the scenario it can be said that a lower debt would be favourable for the company as
it would be relieved of the interest burden. However Shree cement has the highest ratio. This is because
the company has increased its secured and unsecured loans by 42% and used the amount to purchase
fixed assets and has increased its investments When compared to all the companies, Shree Cement
hassignificantly. the best current ratio of 2.02. Thus the company has had an efficient working capital
position . However the working capital position of ACC The debtor turnover ratio of and Ultra Tech has
not been encouraging. Shree Cement and Ambuja Cement has been very impressive. This clearly
indicates that they are able to generate cash quickly and are able to use this to meet their current
liabilities quickly thus maintaining a The interest coverage ratio has been the besthealthy current ratio.
for Ambuja .But Shree Cement and India Cement have scored the lowest on this parameter. This
measure is an important one for the long term creditors. For Shree Cement as the interest on the loans
taken was high resulted in a lower interest coverage ratio. 41
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Table 1.7 - Analysis for the Year ended 2006-2007
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBIDTM (%) ROCE (%) RONW (%) 1.37 10.53 31.24 20.22 27.5 41.3 41.57 1.17 13.49 30.8 14.43
26.97 42.96 55.84 1 11.29 10.43 4.28 28.51 21.1 36.59 1.13 12.89 68.9 17.26 32.51 34.1 35.36 1.13
11.99 72.45 14.83 37.92 17.39 43.86 ACC December 0.4 0.97 Ultra Tech March 1.08 0.7 India Cements
March 1.55 2.2 Ambuja Cement December 0.35 0.91 Shree Cement March 1.74 1.56
We note that all the companies with the exceptionSource: Capitaline of Shree Cement have a high
debt equity ratio in the fiscal 2006-07 when compared to 2007-08. Ambuja Cement has the lowest debt
to equity ratio in this fiscal too. India cement had the best current ratio which was well above the
industry standard of 1.07, followed by Shree Cement. The fixed assets and inventory turnover ratio have
been satisfactory for all the companies and have been well over their industry standards. The debtor
turnover ratio of Shree Cement has been significantly high in comparison to the other players. This
depicts that the company is able to generate cash very quickly. Thus owing to a good debtor turnover
ratio the company was able to maintain a cash and bank balance of Rs.608 crores when compared to
Rs.483 crores in the year ended March 08. The interest cover ratio has been healthy for all the
companies except for India Cement. While the other players have maintained a ratio much above the
industry standard of 6.29, India Cement was able to maintain its ratio just above the industry standard
of 2.1. The main reason being that during this period it had a high interest payable, as is evident form
the high debt equity ratio maintained by the company in this fiscal.
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Table 1.8 - Analysis for the Year ended 2004-2005
India Cements March 1.08 0.7 1.17 13.49 30.8 4.19 26.97 42.96 55.84 Ambuja Cement December 2.81
1.8 0.87 8.81 8.63 1.27 14.67 7.19 4.1
YRC Debt-Equity Ratio Current Ratio Turnover ratios: Fixed Assets Inventory Debtors Interest Cover Ratio
PBITM (%) ROCE (%) RONW (%)
ACC December 0.72 0.91 1.14 8.67 25.44 20.22 23.56 19.08 22.08
Ultra Tech March 0.57 0.63 0.82 10.59 68.34 17.26 27.86 18.55 22.3
Shree Cement March 1.14 0.94 0.76 8.88 39.06 2.92 24.9 6.57 6.28
The debt equity ratio of the Ambuja cement is leastSource: Capitaline as compared with the other
prominent players which is also below the industrial standard of 0.98 which depicts that the major funds
is generated out of the shareholders equity by increasing it from Rs.2178.42 crores in 30.06.2005 to
Rs.3491.72 crores as on 31.12.2006*. India cement‘s debt equity ratio is the highest among the top
performers which also shows that they have more funds generated from the loans and debts than from
the shareholders equity. It also shows that there is also a vital role of short term debts in raising funds
(as comparing it with the long term debt equity ratio of the others). Thus , this may result in the volatile
earnings as the result of the additional interest In the long term debt equity ratio of the India
cementexpenses. stood to be the highest among all the other top performers. i.e. 2.22 which is even
much higher than the industrial standard of 0.89. However the debt equity ratio of the same has got
reduced from the previous of 4.20. still it sounds more riskier because of higher interest rates, they
might have to pay the additional interest out of the debts. Also Ambuja stood to be the lowest in the
long term debt-equity ratio because of more increase in the raising of funds from shareholders equity
than of the long term loans.
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As per the comparison of the top cement players the India cement stood to be the highest in
maintaining the current ratio of 1.8 (near to the ideal ratio of 2.0) which shows the higher liquidity of
the company than its peers which is followed by the Shree cement and the acc ltd. (however they are far
behind the India cement). The least one is of the Ambuja cement i.e. of 0.63 which is not very attractive
.
The comparison of the fixed asset turnover ratio of the top performers shows that the acc ltd. And the
Ultratech have been efficiently utilizing their fixed assets for the generation of the sales as compared to
the others and also succeed their industrial standard of 1.07. however the fixed asset efficiency of the
others are the moderate.
The debtors turnover ratio of the Ambuja cement is very impressive as compared to the others which
depicts its ability to collect the amount from the debtors and also the efficient management of the
debtors and helps the firm to generate enough cash to meet the current liabilities and thus maintain
healthy liquid ratio. However the debtors collection of the Indian cement is to be questioned as it holds
the lowest of the debtors turnover ratio within the top performers and even fall below the industrial
standard of 13.65.
The interest coverage ratio observation of the top performers reveals that the coverage ratio of the acc
ltd is the highest of all which sounds good from the lenders point of view since its profit before interest
and tax is 20.22 times of its interest expenses i.e. the company has enough earnings to clear its interest
obligations and thus shows the investment of the lenders are relying in the safe hands. Also it depicts a
good short term financial health of the business. also the coverage ratio of Ambuja cement sounds
impressive .however the coverage ratio of Ultratech cement and Shree cement is not attractive for the
investor as it falls below the industrial standard of 9.89 and the interest coverage ratio of the Indian
cement sounds questionable as it is the lowest of all and also is below its industrial standard of 2.25.
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Table 1.9 - Analysis for the Year ended 2004-2005
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBITM (%) ROCE (%) RONW (%) 1.15 9.86 24.35 5.61 11.91 18.46 25.65 0.71 12.07 17.5 0.69 2.4
2.77 0.27 0.68 7.89 9.14 0.18 2.34 2.79 -12.55 0.82 10.59 68.34 6.65 20.17 18.55 22.3 0.79 11.01 26.94
2.46 7.25 8.84 10.75 ACC March* 1 0.9 Ultra Tech March 1.48 0.66 India Cements March 4.76 1.47
Ambuja Cement December 0.57 0.63 Shree Cement March 1.2 0.98
Source: Capitaline * In the year 2004-05, ACC cements has prepared its books of accounts in the month
of March 2005. It changed their financial year to December by preparing their Annual Report for a
period of 9 months in Decmember 2005. Thereafter, it prepared its books of accounts Ambuja cement
and ACC Cement have the lowest debt-equityin December. ratios. India cement has the highest debt-
equity ratio of 4.76. This is The currentbecause the fall in equity is more than the fall in debt. ratio is
the least for Ambuja Cement and Ultratech Cement, which show a poor working capital, which has to be
strengthened. The working capital The fixed asset ratio of ACCof India Cement shows a good position.
cement is high because the revenues increased by 16.7% that year whereas the fixed assets increased by
less than 6%. The ratio for India Cement is lowest because the company has not spent its revenue, which
increased by Rs.152.49 crores, on fixed assets, which reduced by Rs.33.22 crores. Ultratech Cement has
the highest inventory turnover ratio among the Northern major players whereas the lowest is that of
ACC cement because the average inventory increased by roughly 43.5% that year.
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The debtors Turnover ratio for India Cement is lower than the industry standard of 13.31 which shows
that the company is not able to effectively generate cash from its debtors. Ambuja Cement shows a
good turnover rate, which is well above the industry standard.
The interest coverage ratio is very low for India Cement
Table 1.10 - Analysis for the Year ended 2003-2004
Ultra Tech March 1.52 0.61 1.26 24.14 30.33 1.43 6.1 12.17 7.2 India Cements March 4.76 1.47 0.68 7.89
9.14 0.18 2.34 N/A N/A Ambuja Cement December 0.83 0.76 0.7 9.62 51.92 4.36 21.63 14.99 18.51
ACC March Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest
Cover Ratio PBITM (%) ROCE (%) RONW (%) 1.05 10.75 21.34 3.26 9.41 13.86 16.48 1.21 0.78
Shree Cement March 1.51 0.95 0.74 10.03 19.43 1.55 10.09 10.32 5.5
Source: Capitaline
Ambuja Cement has the least debt-equity ratio, which is also well below the industry standard of 3.53.
The company has reduced its secured and unsecured loans by 31.6% in 2003-2004 when compared to
the previous year. As a result of this, the equity is much more than its debt. India cement has the highest
debt-equity ratio of 4.76 which is much higher than the industry standard of 2.88. The company is highly
dependant on its debt. The loans of the company have increased by 17.7% in 2004 when compared with
2003. Most of this amount has been invested in fixed assets.
Ultratech cement has the lowest current ratio and is also the only company among the top 5 to be
below the industry standard. The highest current ratio is that of Shree cement and India cements. They
have a good working capital position when compared to the remaining companies.
The Debtors turnover ratio is highest for Ambuja cement which shows that it can generate cash from
their debtors quickly. ACC cement and Shree Cement should work on improving their debtors turnover
ratio.
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India cement has an interest coverage ratio which is below the industry standard of 0.73. In the North,
Ultratech cement has the lowest interest coverage ratio. This is because the company’s interest was
very high at around Rs.106.88 crores. Ambuja Cement has the highest interest coverage ratio. Its
interest was relatively lower than that of the previous years.
The average inventory of Ultratech cement was quite low during the year, causing it to have the highest
Inventory Turnover ratio among the other players. The reason for Ambuja Cement to have the least
Inventory Turnover ratio among the major companies of the North is because of its high average
inventory.
The Asset turnover ratio is high for ACC cement because the revenue has increased considerably,
whereas the value of fixed assets has not increased much.
MINOR PLAYERS RATIO ANALYSIS The bottom 3 cement companies have been selected based upon their
performance in the last financial year. The net sales turnover has been used to judge performance. The
3 minor companies are: Northern Region – Sainik Finance Southern Region – Shri Keshav Cements,
Bheema Cements
Table 1.11 – Industry Standards (Ratios) – North Region
YRC Debt-Equity Ratio Current Ratio Turnover ratios: Fixed Assets Inventory Debtors Interest Cover Ratio
PBITM (%) ROCE (%) RONW (%) Latest 1.82 1.26 0.87 9.7 10.23 1.54 10.87 8.84 5.91 2006 1.89 1.39 0.96
8.5 11.81 3.38 14.99 13.22 22.4 2005 2.02 1.22 0.86 7.36 8.74 1.59 8.83 7.44 5.55 2004 2.1 1.11 0.83
6.91 7.18 1.54 12.13 10.63 7.13 2003 1.63 1.12 0.56 5.52 5.31 1.36 13.16 7.52 4.35
Source: Capitaline
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Table 1.12 – Industry Standards (Ratios) – South Region
YRC Debt-Equity Ratio Current Ratio Turnover ratios: Fixed Assets Inventory Debtors Interest Cover Ratio
PBITM (%) ROCE (%) RONW (%) Latest 2.03 0.97 1.05 9.23 9.42 1.13 6.56 8.25 0.36 2006 1.55 0.83 1.09
9.77 11.35 2.21 9.07 14.42 19.1 2005 1.94 0.81 0.98 7.53 11.95 1.13 5.87 8.17 -0.61 2004 2.24 0.85 0.65
4.5 6.7 0.92 6.33 0 0 2003 2.32 0.8 0.89 6.28 8.83 0.95 6.92 0 0
Source: Capitaline
Table 1.13 -Analysis for the Year ended 2007-2008
YRC Debt-Equity Ratio Current Ratio Turnover Ratios: Fixed Assets Inventory Debtors Interest Cover
Ratio PBITM (%) ROCE (%) RONW (%) 1.25 2.23 2.71 5.77 17.76 8.06 4.6 0.93 4.31 630.4 3.49 12.63 8.9
15.45 0.72 6.66 10.22 4.62 27.2 18.08 7.38 Sainik Finance March 0.19 2.03 Shri Keshav March 2.71 0.93
Bheema Cements March 0.46 1.16
Source: Capitaline
The debt to equity ratio was the highest for Shri keshav. The main reason being that for the year ended
March 2008, their total debt stood at Rs 28.73 crores which is much higher when compared to their last
fiscal year which stood at a mere Rs 3.93 crores. The excess loan was utilised to purchase fixed assets.
Perhaps the company intends to increase their production capacity.
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Sainik Finance and Bheema Cement maintained a healthy current ratio well above the industry which
stands at 0.97. The low industry standard depicts that the minor players in the South pay less attention
to liquidity in comparison to their counterparts in the North where the industry standard stands at 1.26.
The industry standard for fixed asset turnover ratio is 1.05. However only Sainik Finance was able to
meet the standard. The main reason being that it has very low assets which are worth Rs 6.66 crores
.Where as Bheema and Shree Keshav have assets of 117 crores and 17 crore respectively and have
generated net sales of Rs37 crores and Rs 17 crores respectively.
The companies had a low inventory turnover ratio, even below that of the industry standard of 9.23
times. Sainik Finance had the lowest ratio. This is mainly because it had Rs 5.39 crores tied up in
inventories.
Shree Keshav maintained a very impressive debtor turnover ratio for the year ended 2008.This implies
that the company has been very efficient in collecting dues from its debtors where as Sainik Finance had
the lowest ratio even below that of the industry standard of 10.23.
The interest coverage ratio for all the companies lies well above their industry standard.
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Table 1.14 - Analysis for the Year ended 2006-2007
YRC Sainik Finance March Shri Keshav March Bheema Cements September
Debt-Equity Ratio Current Ratio
Turnover Ratios:
0.54 0.85 0.77 5.35 112.67 4.24 12.63 8.9 15.45
1.46 1.15 1.67 6.93 6.32 4.81 21.77 31.21 51.29
0.29 2.16 1.26 1.86 2.87 4.54 23.72 9.5 5.54
Fixed Assets Inventory Debtors Interest Cover Ratio PBITM (%) ROCE (%) RONW (%) Source: Capitaline
The debt-equity ratio was the highest for Bheema Cement in this year but in the year ended 2008 it was
0.46. The main reason was that the company had a share holder’s equity of only Rs. 22.88 crores as on
September 2007 but the same swelled to Rs.152.82 crores in the year ended 2008. More over Sainik
Finance had the lowest debt equity ratio.
The current ratio of Sainik Finance was very impressive when compared to its industry standard of 1.26
times. However Shree Keshav failed to even meet the industry standard of South India of 0.86 and also
lagged behind in the fixed asset turn over ratio.
The companies in this year too, companies have had low inventory turnover ratios indicating that they
have not been able to convert their inventory into sales efficiently. The three companies lie much below
the industry standards of 9.3 times. very
The debtor turnover ratio maintained by Shri Keshav has been very efficient. Thus they have been able
to covert their debts to cash very quickly. This can help the company to maintain liquidity. However the
other players have not been able to maintain the same and have in fact performed below the industry
standard of 9 times.
The companies have had interest coverage position better than the industry standard. However it ought
to be more from the point of view of the long term lenders.
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Table 1.15 - Analysis for the Year ended 2005-2006
YRC Sainik Finance March Shri Keshav March Bheema Cements March
Debt-Equity Ratio Current Ratio
Turnover Ratios:
0.36 2.4 1.03 1.11 2.96 3.85 21.98 7.25
0.32 0.89 0.71 6.76 12.93 2.21 4.13 3.7
1.45 1.08 1.46 5.3 5.72 1.73 8.01 14.12
Fixed Assets Inventory Debtors Interest Cover Ratio PBITM (%) ROCE (%) Source: Capitaline
The observation of the debt-equity ratio reveals that the ratio of Bheema cements Ltd. stood the highest
among the remaining lowest minor performers as its major funds got raised from debts which raised
from Rs.9.49 crores to Rs.12.2 crores, however it remained lower than its industrial standard of 1.55.
The debt-equity ratio of Sainik finance and industries got down from 0.58 in mar 2005 to 0.36 in mar
2006 primarily because of decrease in debts from Rs. 8.49 crores in 2005 to Rs. 6.10 in 2006. The debt-
equity ratio of Shri Keshav cement and infra ltd. Stood to be the lowest at 0.32 although there is
increase in its ratio comparing to its previous year’s. Also while observing its long term debt-equity ratio
it reveals that much of the funding of the companies has been raised from the short term loans and in
fact in company such as Sainik finance and industries there has actually being repayment of long term
debt.
The current ratio of Sainik finance and industries seems to be most impressive i.e. 2.40 followed by
Bheema cements which is at 1.45, both much higher than their industrial standards of 1.39 and 0.83
respectively. This shows that they have greater ability to pay their short-term liabilities (from which they
have raised their vital funding requirements.) thus, this might have provided confidence to the investor
to invest in the industry. Although the current ratio of Shree Keshav is the lowest of all, it sounds good
as comparing to its industrial standards.
The fixed assets turnover ratio of Bheema cements ltd. Is the highest among the minor performers
which depicts that it has been efficiently utilizing its fixed assets for generating 51
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sales as compared to others. The fixed assets turnover ratio of Sainik also sounds good as comparing its
previous year’s performance. However Thethe same turnover ratio of Shree Keshav is not very
encouraging. analysis of the debtor turnover ratio shows that the ratio of Shree Keshav cements and
infra stands the highest and is far above the ratio of the others .This depicts that the ability to extend
credit and to collect debts is higher in Shree Keshav cement as compared to the others. The debtor’s
turnover ratio of the other to minor players is not impressive as they fall much below the industrial
standards of 11.85 The observation of interest cover ratioand 11.35 respectively. reveals that the ratio
of the Sainik finance and industries holds the highest of all followed by Shree Keshav cement & infra Ltd.
and Bheema cements Ltd. This shows that the ability to pay interest on outstanding debts is 3.85 times
of its earnings before interest and tax (in case of Sainik finance) which says that the confidence of the
creditors would be higher in it. However all of the three minor players have their interest cover ratio
higher or equal to their industrial standards.
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Table 1.16 -Analysis for the Year ended 2004-2005
YRC
Sainik Finance March
Shri Keshav March
Bheema Cements March
Debt-Equity Ratio Current Ratio
Turnover Ratios:
0.58 2.05 0.83 0.49 4.38 1.85 23.98 6.63
0.22 0.94 0.8 6.42 8.13 1.94 4.08 4.11
1.53 1.1 1.47 5.91 6.26 1.77 6.73 12.21
Fixed Assets Inventory Debtors Interest Cover Ratio PBITM (%) ROCE (%) Source: Capitaline
The analysis of the debtors –equity ratio reveals that Bheema cements has the highest ratio as
compared to the others though it has got decreased from its previous year’s ratio. It is even having ratio
lower than its industrial standard of 1.94. Others such as Sainik and Shree Keshav cement’s debt-equity
ratio is not encouraging. Also comparing the debt equity ratio with the long term debt equity ratio
reveals that there is presence of short term debts as compared to the long term ones.
The current ratio of Sainik finance and industries sounds very impressive as compared to the others thus
shows its greater ability to pay its short term liabilities. The current ratio of Bheema cements also
sounds good as it is higher than its industrial standards of 0.81.
The fixed assets turnover ratio observation reveals that the turnover ratio of Bheema cements is the
highest amongst all the three minor players and it is also higher than the industrial standard of 0.98. This
shows that the company is able to efficiently utilize its fixed assets to generate sales. The fixed assets
turnover ratio of Sainik and Shree Keshav is not very encouraging.
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The debtors’ turnover ratio observation reveals that the ability to extend credit and to collect debt is
highest in Shree Keshav as compared to the others, however it is not sound as compared to the
industrial standard of 11.95. The turnover ratio of the other two player is also not very encouraging.
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The interest cover ratio of each of the minor player sounds good as comparing their ratios with the
industrial standard with Shree Keshav cement holding the highest of ability to cover its interest
obligations with the earnings before interest and tax and thus having greater investor’s confidence
followed by Sainik finance and then by Bheema cements
Table 1.17 - Analysis for the Year ended 2003-2004
YRC Sainik Finance March Shri Keshav March Bheema Cements March
Debt-Equity Ratio Current Ratio
Turnover Ratios:
1.86 1.12 1.4 7.37 5.87 1.02 2.06 7.71 0.36
0.3 1.04 0.63 4.88 3.99 1.6 6.97 3.84 1.85
0.83 1.61 0.87 0.39 9.11 1.67 11.74 9.74 3.68
Fixed Assets Inventory Debtors Interest Cover Ratio PBITM (%) ROCE (%) RONW (%) Source: Capitaline
For this period Sainik cements portrayed the lowest debt equity ratio of 0.3, whereas Bheema cement
was 1.86. Bheema cements have reduced the external borrowings. Even though compared to the other
minor players Bheema has a higher debt equity ratio, when compared to the industry standards of 2.24,
it is very less.
Sainik cements has the highest current ratio of 1.61, followed by Bheema cements 1.12 and Shri Keshav
with1.04. Sainik cements is in a good position as the industry standard is 1.1. Sri Keshav , even though it
has the lowest in comparison to others is in a good position as the industry standard for minor south is
0.85.they are in a position to meet their short term obligations.
The debtors turnover ratio the highest for sainik cements. They are able to generate cash quickly.
Bheema cements should improve their position and Shri Keshav in this regards has not been up to the
mark.
The interest coverage ratio has been the best for sainik cements followed by Shri Keshav and Bheema.
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cements, when compared to their standard of 0.92, their position is good. This measure is an important
one for the long term creditors. It used to determine how easily a company can pay interest on
outstanding debt.
THE KEY ISSUES RELATING TO THE CEMENT INDUSTRY:
Carbon Dioxide emissions: The cement industry is responsible for 8% of global carbon emissions. It is the
key ingredient in concrete, and one that is rapidly emerging as a major obstacle on the world's path to a
lowcarbon economy. The manufacturing process involves burning vast amounts of cheap coal to heat
kilns to more than 1,500C. It also relies on the decomposition of limestone, a chemical change which
frees carbon dioxide as a byproduct. So as demand for cement grows for schools, hospitals, luxury hotels
and car parks, so will greenhouse gas emission. Dimitri Papalexopoulos, managing director of Titan
Cement, Athens said "No matter what you do, cement production will always release carbon dioxide.
You can't change the chemistry, so we can't achieve spectacular cuts in emissions. Cement is needed to
satisfy basic human needs, and there is no obvious substitute, so there is a trade-off between
development and sustainability." Already, some cement companies have taken steps to reduce their
environmental impact. Some burn waste products alongside coal, while others have reworked their
recipes and tried to make their plants more energy-efficient, with modest success. Transportation costs:
Cement being a high bulk and low value commodity, outward freight accounts for close to one fifth of
the total manufacturing cost. In addition, for every tonne of cement produced, close to 1.7 tonnes of
raw material (including coal) is transported. In this scenario, the location of the cement plant becomes
crucial. While deciding on the plant location, there is a trade-off between proximity to raw material
sources and proximity to markets.
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The plant has to address issues of logistics (evacuation of cement by rail, road or waterways), power
availability in the region, and the first strategy is to locate manufacturing facilities near the consuming
centers. In this case, outward freight is minimized and marketing flexibility enhanced at the cost of
higher raw material assembly costs. The second strategy is to locate the plant close to the mineral
deposits, so as to minimize raw material assembly costs. Given that 1.4-1.5 tonnes of limestone are
required per tonne of clinker, locating the plant along the limestone deposits is the logical corollary.
Thus, there can be two broad locational strategies, which is not merely to minimize unitmanufacturing
cost, but to minimize unit delivered cost as well. The freight cost becomes a significant factor in
determining the landed cost of cement. This has resulted in very low volumes of international trade in
cement. World cement trade has averaged just around 6-7% of the total production. Most of the
cement plants in India are located in and around the limestone clusters. These clusters are distant from
the markets for cement. Thus, cement companies have to rely on extensive transportation for moving
coal from the coal pitheads to the cement plants and for dispatching cement from the plant to the
markets. As both coal and cement are of low value and are bulky in nature, freight costs are
considerably higher for cement plants. Cement companies use both road and rail to transport cement
and to receive coal. Rail despatches amount for about 33% while roads carry the balance 66%. The
balance 1% is accounted by sea transportation. The share of road over rail has only gone up over the
years. For coal transportation, the dependence on rail network is still very high and accounts for around
70% of coal movement Although rail transportation is more economical for distances beyond 250-300
km, cement companies have started preferring road transportation even for longer distances because of
several reasons. Rising railway traffic coupled with insufficient investments by the railways for increased
wagon supplies and the fact that the cement industry is not an important customer of the Railways
(cement cargo accounts for just 7-8% of the total railway freight) have resulted in a shortage of wagon
supply to the cement industry.
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Coal prices: Cement is made from a mixture of calcium carbonate (generally in the form of limestone),
silica, iron oxide and alumina. A high-temperature kiln, often fuelled by coal, heats the raw materials to
a partial melt at 1450°C, transforming them chemically and physically into a substance known as clinker.
This grey pebble-like material is comprised of special compounds that give cement its binding
properties. Clinker is mixed with gypsum and ground to a fine powder to make cement. Coal is used as
an energy source in cement production. Large amounts of energy are required to produce cement. Kilns
usually burn coal in the form of powder and consume around 450g of coal for about 900g of cement
produced. Coal, accounting for almost 35-40 per cent of cost of production of cement, is in short supply.
This has forced cement firms to buy local coal from the open market at a 30-60 per cent premium.
According to a report in economic times in 2007, the supply situation would continue to remain tight for
the rest of the financial years. As a result, it is expected that there would be upswing in cement prices as
tightness continues. Other Environmental Impacts: The cement industry does not fulfil the requirements
of environmentally sustainable industry It uses non-renewable raw because of the following
reasons: materials and energy, such as coal. It sources its raw material by mining, which destroys the
local ecology. It produces products that are not recyclable such as mercury, cadmium, arsenic and
cobalt.
In India, approximately 70% of cement plants have communities residing near their mines within 1 km
radius. And 90% of the limestone, a major raw material for cement production is extracted via blasting.
As a Blastingresult, the local communities face the following problems: There arehas high
environmental impact- noise, vibration and dust. also complaints related to building damage and dust
problems due to Mining also results inblasting, mining and material transportation. depletion of
groundwater levels.
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CHAPTER V
SUMMARY OF FINDINGS
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THE CEMENT INDUSTRY PERFORMANCE FOR THE YEAR 2008-09
India's cement dispatches growth has been improving from 5.9% in the quarter ended June 2008 to
6.3% in the quarter ended September 2008, which has further accelerated to 8.3% in the quarter ended
December 2008 while the industry has shown a 11% YoY growth. The cement sector recorded 11%
growth in dispatches in November to 15.81 million, after similar 11% increase to 14.25 million tonne in
December 2008. In fact, the pace of growth in production accelerated from 6% in October 2008 to 8% in
November 2008, which has further leaped to 11% increase to 15.62 million tonne in December 2008. In
the process, after seven months of single digit growth in the dispatches in the current fiscal, the sector
has recorded double digit growth for two months in succession. Throughout the financial year 2007-
2008 and the beginning of the current year the cement producers were constrained with their inability
to raise price due to excessive government intervention. The period then witnessed sky rocketing
commodity prices, which squeezed the operating margins of the cement manufacturers. However the
fall in input prices like the prices of coal and other raw materials from their peaks during the recent past
would help the industry in maintaining their margins at least till the end of the next financial year when
the supply is expected to exceed demand. PRODUCTION & DISPATCHES (REGION-WISE): During the
month of December 2008 the cement industry posted excellent growth in production mainly from the
northern and the eastern region of the country. The demand continued to be strong as can be evident
from the capacity utilization levels in all the major regions. Increase in installed capacities by some
players also contributed to improved The central region of the country achieved the production
growth. highest capacity utilization rate of 98% The northern region and the eastern region had a
capacity utilization rate of 93% respectively. The western region and the southern region had a capacity
utilization level of 95% and 86% respectively.
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The overall cement production and dispatches increased by 11% to 15.82 million metric tonnes and
15.81 million metric tonnes respectively during the month of December 2008 as compared to the same
period last year. Excess dispatch implies that there is strong demand as inventories are being disposed
off quickly. The production and dispatches were higher by 10% and 11% respectively as compared to the
previous month. The following graph gives a clear indication of the increase in production (Region wise)
in December in comparison to the previous month.
Table 1.18: Region-wise production of cement
Region Central Northern Southern Western Eastern Fig. 2.7 Increase % 13 22 9 2 9 Production in million
tonnes 2.31 3.74 4.94 2.51 2.32
Source: Capitaline
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CONSUMPTION: Southern region continued its trend of higher consumption with the total consumption
reaching a level of 4.58 million tonnes thus registering a YoY growth rate of 9.3%. Andhra Pradesh and
Tamil Nadu were the dominant consumers in the southern region accounting for 1.59 and 1.3 million
tonnes respectively. Following South is the Western region with a consumption of 3.02 million tonnes.
The following graph gives a clear indication of the region wise consumption and their YoY growth
percentage.
Table 1.19: Region-wise cement consumption
Region Central Northern Southern Eastern Western Fig. 2.7 Consumption YoY growth % 2.38 3.21 4.58
2.46 3.02 25 11.7 9.3 14.1 8.3
Source: PL Research
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INPUT COSTS CONTINUE TO FALL: Following the global financial turmoil commodity prices had crashed
from their peak level. Major input cost for the cement sector like the international coal also fell
significant from their peak of the current year. The South African export price of coal during the month
of November 2008 was US$ 89.38 / metric tonnes, which were 18%, lower compared to the previous
month. The price was even lower compared to the same period last year. The current price is around
USD 76 per metric tonnes. During the month of December 2008, the government has reduced the prices
of petrol & diesel by Rs 5 and Rs 2 per litre respectively and in the coming weeks the government is
planning to reduce the prices further due to falling crude oil prices. A cut of 5-6% in diesel prices will
translate into a 1.5-2% decline in the freight rates for the cement companies, depending on their road
and rail transport mix. In line with the falling commodity prices and the benefits arising from the recent
cut in excise duty, the prices of cement has also fallen in most of the major consuming markets. The WPI
of cement thus also has fallen. Cement, which has a weight of 1.73% in the WPI index, has fallen by 1%
to 222.48 during the month of December 2008 as compared to the previous month. However it
remained at higher levels when compared to the same period last year.
EFFECTS OF RECESSION ON THE INDIAN CEMENT INDUSTRY India's cement industry is the world's
second largest after China with an installed capacity of more than 200 million tonnes. It has 132 large
plants and 365 small plants with a cumulative installed capacity of 204mt at the end of August 2008.
After growing by over 10 per cent in the last two years, cement demand has slowed down to 9 per cent
now. This decline A sharp slowdown in real estate Lack of capital stems from investment in
infrastructure sectors and A broad economic downturn across the world.
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REAL ESTATE SECTOR: The real estate sector is the key driver of the Indian Cement Industry. It
accounted for almost 55% share in FY 07. The unending euphoria of real estate sector in India witnessed
during the last few years is finally starting showing signs of ebbing. This slowdown is likely to hurt the
cement sector the most. The slowdown is The fall in stock markets, as wealth creation does
aided by not happen and there is lack of capital among investors to invest in real estate projects. Also,
to adjust their share market losses, many investors are forced to sell off their real estate properties.
Other factor that has led to the slowdown is the increase in interest rates leading to higher costs. (for
real estate developers) Income levels have not risen in proportion to the increase in property prices thus
forcing many potential buyers out of the market. Due to rising input costs of steel, iron and other
building material, it has become unviable for builders to construct properties at agreed prices. As a
result, there may be a delay in project completion leading to financial constraints. The IT industry is
experiencing a slowdown. This has imposed constraints on residential as well as commercial demand
since IT/ITES segment accounts for 70% of the total commercial demand. INVESTMENT IN The
completion INFRASTRUCTURE: The Union Budget 2007-08 provides for of the North-South, East-West
corridor project, by 2009. 538 projects with a total cost of Rs. 23,950 crore have been sanctioned in
sectors such as water supply, sanitation, transport, road and housing in many cities spread over several
states, under the Jawaharlal Nehru National Public private partnership (PPP) model -Urban Renewal
Mission (JNNURM) The budget announced the launch of the US$5 billion infrastructure financing
initiative by partnering with Citigroup, Blackstone, IDFC and IIFCL. Government also proposes to
promote the flow of investment to the infrastructure sector by Real Estate Mutual Fund (REMF).
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India requires approximately US$320 billion for infrastructure during the eleventh Five Year Plan. Such
initiatives will create the necessary finance pool for speedy implementation of critical infrastructure
projects in the country.
However, India's core infrastructure sector, which accounts for 26.68 percent of India's industrial output
(IIP), declined to 4.3 percent in July 2008 from 7.2 percent a year ago. During the April-July 2008 period,
the core infrastructure sector grew by 3.7 percent, lower than 6.6 percent growth posted in the
corresponding year ago period. As the cement industry is demand driven, this decline as an immediate
impact on its performance. *The core infrastructure sector comprises of crude oil, petroleum refinery
products, coal, electricity, cement and finished (carbon) steel.
OVERALL SLOWDOWN (Economic Downturn): Job cuts and pay cuts are a common phenomenon after
the global meltdown and the cost of living has gone up due to inflation. In such a scenario, a borrower
faces a serious financial crisis as home loan repayments become difficult. This in turn The
industry'saffects the housing sector. CAPACITY UTILISATION: capacity utilization for second quarter
ended September 2008 declined to 82%, a four-year low, largely because 31mt of capacity was added in
the past year. The production capacity exceeded the demand, thus lowering the total capacity
utilization. In the next 2 to 3 years, 120mt of capacity is to be added, in addition to several companies
modernizing Experts predict capacity utilization for the year their plans. ending March 2009 will be
at around 87% down from an optimum level of around 95% in the year-ago quarter ended March. They
also estimate capacity utilization to fall sharply to 74% in 2009-10. The surplus of cement in the industry
is predicted to be as high as 20.7 million tonne in 2008-09 and 47.4 million tonne in 2009-10.
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UltraTech Cement, while announcing September quarter results on 18 October, said, "The likely
commissioning of around 90mt capacity in a phased manner over the next three years could lead to a
surplus scenario by 2009 resulting in pressure on earnings, sales realization and margins. All these pose
a challenge to the cement industry. Graph 2.8: Cement prices PRODUCTION COSTS: Cement companies
reported 10 per cent growth in their revenues, while their net profit declined by 21 per cent on
compression of margins, last year. Almost all cement companies faced margin pressures on account of
an increase in their overall production costs. Coal, which accounts for almost 35-40 per cent of the cost
of production of cement, is in short supply. Coal prices increased by over 100 per cent in the last one
year. This has lead to an overall increase in the cement prices, thus affecting the demand for it.
EXPORTS: Domestic Cement industry is highly insulated from global cement markets. Exports have been
constant at about 6% of total cement demand for past few years. In 2008, Cement exports declined
from 10 million tonnes in FY05 to 2.1 mt between April-December 2008 on account of additional
capacity addition and real estate slump in the Middle East region, which is the main export market of
Indian cement producers. Demand for cement can be gauged from the country’s economic
performance, with demand typically averaging 1.2 times the GDP growth. Assuming that India’s GDP will
grow at 6.5 per cent and 6 per cent in FY09 and FY10 respectively, analysts expect demand for cement
to grow at 7.8 per cent and 7.2 per cent in the mentioned two years, respectively
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FUTURE PROSPECTS OF THE CEMENT INDUSTRY
High spending on infrastructure projects and growing demand for housing units will fuel the Indian
cement industry. Despite the gloomy outlook for the world economy, cement dispatches have witnessed
impressive growth of 11.2% and 12.1% in November and December 2008 respectively.
INFRASTRUCTURE: The Indian government has considered spending more than US$ 500 billion on
infrastructure in the 11th Five Year Plan. This plan includes building road infrastructure, which will
require 75 million metric tons of cement and power infrastructure that demands around 45 million
metric tons of cement. Apart from this, railways, urban infrastructure, ports, airports, IT & ITES sector,
organized retailing, shopping malls and multiplexes will be the main sectors driving the demand of
cement in the country, says the report. Besides this, the housing sector is also one of the key drivers for
the cement industry and accounts for more than 40% of total cement demand. To further boost the
housing demand in the country, many nationalized banks have reduced their interest rates on housing
loans. As a result, the number of houses constructed is expected to increase from 3.6 million in 2007 to
6 million units by 2011. This concrete growth in the housing sector will lead to huge cement demand in
the country. COMMONWEATH GAMES: Industry experts forecast that the growth pattern in cement is
expected to continue further due to the increased level of construction activities taking place across
India. One of the reasons for this is that Delhi, the capital of India, is home to the 2010 Commonwealth
Games. ESTIMATED PRODUCTION: The current cement industry is expected to grow to produce 223.0
million tonnes in 2009 from 198.30 million tonnes of the 2008.
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ESTIMATED EXPORTS: The target for export has been estimated to be 9.9 million tonnes and 10 million
respectively for 2009 and 2010. SEZS DEVELOPMENT: Also upcoming SEZs in areas such as Bangalore,
Bhubaneshwar, Indore, Nasik and Pune would further boost the demand for cement. INCREASE IN
POPULATION: Indian population growing at the rate of 1.5% would also act as a benefit for the cement
industry as it would boost the overall demand for housing and in turn cement.
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BIBLIOGRAPHY
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Sources of On-line Journals and Write ups: 1. www.articlenext.com 2. www.capitaline.com 3.
www.economywatch.com 4. www.globusz.com 5. www.ibef.org 6. www.mospi.nic.in 7. www.rbi.org.in
8. www.researchandmarkets.com
The following reports were referred to
L. G. Burange and Shruti Yamini (2008), Performance of Indian cement industry: The competitive
landscape, University of Mumbai, Department of Economics. Anupam Rastogi (2007) ,The Infrastructure
Sector In India. Economic Advisory Council, Review of the Economy 2008/09 National Housing Bank
Report 2005 Reserve Bank of India Trends and Progress Reports
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