Cement Industry (1).pdf

8/19/2019 Cement Industry (1).pdf

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“CEMENT INDUSTRY”

A

Research Report

For

Management Research Project -ISubmitted

In the partial fulfillment of the Degree of

Master of Business Administration

Semester-III

By

Name Exam No.

Hetal Mistri (12044311048)

Tosifbhai Nandoliya (12044311056)Dhara Patel (12044311078)

Dixita Patel (12044311083)

Jigarbhai Patel (12044311094)

Vaibhavi Raval (12044311142)

Under the Guidance of:

Prof. (Dr.) Mahendra Sharma

Prof. & Head,

V. M. Patel Institute of Management.

&

Ms.Harsha Jariwala

Prof. Abhishek Parikh

Faculty Members,

V. M. Patel Institute of Management.

Submitted To:

V. M. Patel Institute of Management,

Ganpat University,

Kherva.

(December, 2013)


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CANDIDATE’S STATEMENT

I/We hereby declare that the work incorporated in this report entitled “Cement Industry ” in partial

fulfillment of the requirements for the award of Master of Business Administration (Semester - III ) is

the outcome of original study undertaken by me/us and it has not been submitted earlier to any other

University or Institution for the award of any Degree or Diploma.

Hetal Mistri

Dhara Patel

Dixita Patel

Vaibhavi Raval

Jigarbhai Patel

Tosifbhai Nandoliya

Date: 03/12/2013

Place: Kherva


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PREFACE

One can deny for the importance of the practical exposure of the problem for its better understanding

and better grip of coming out with an industrially acceptable solution.

Being the Management student and performing small practical even is in itself an experience of

responsibility on our head. The project is certainly the best chance to work in the Management field

and have practical understanding of Management Strategic formulation and its implementation. This

exposure has really added a supplement and nourishment to our growing tree of management

knowledge- just like the fertilizer does to the plants.

In view of above, this report has been completed as a part of syllabus prescribed for the master of

business administration. This had been made in order to know Cement industry overview and its

strategic tools and its planning. This will help us to understand How Made Strategic Tools for

particular industry, which factor affected to Cement industry. We also know the Strengths, Weakness,

Opportunities, and Threats. This will help to understand financial overview of Cement industry. We

also know the Political, Economical, Social, Technology factor which affected to the Cement Industry.

It is matters of proud to be students of such great university where in students are helped to extract

hidden potentials from their selves. We are highly Thankful to all the Faculties of the department who

guided us all the way long as how the entire MRP 1 report is to be conducted.

The education institutions offering management programs play a significant part in un calculating the

much needed managerial skills in their students, the aspiring managers. The real success of

management lies in applying the professional management techniques in all managerial activities.

Practical study is eminent, and plays vital role for the students of management, because classroom

coaching and theoretical study alone are not enough. To survive in this highly competitive world,

practicality outweighs theoretic. Students are supposed to learn the various principles of business

administration conceptually but accuracy and efficiency in their implementation is possible only

through exposure to practical environment.

We have tried our best and have applied all our efforts, knowledge and sources available, in this

project.

Here we try our level best for finding data.


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ACKNOWLEDGEMENT

It is with profound in depthless that we acknowledge the efforts of all the well-wishers who have in

some or the other way contributes in their own special way to the success of this project.

We would like to express deep sense of gratitude to Dr. Mahendra Sharma. We would also thankful

to Prof.Harsha Jariwala for their advise, constant encouragement and timely help throughout the

course of our project.

We would like to thank Prof.Harsha Jariwala and prof. Abhisekh Parikh for provide us this golden

opportunity for preparing report and provide us guideline regarding project report.

We would like to thanks our group partener because of they help and support for preparing report and providing informetiom regarding our project report.

Last but not the least we thank all the persons who have directly or indirectly support in this projectreport.

Hetal Mistri

Dhara Patel

Dixita Patel

Vaibhavi Raval

Jigarbhai Patel

Tosifbhai Nandoliya


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EXECUTIVE SUMMARY

India's economy is the third largest by GDP in terms of purchasing power parity but, with a very large

population, it ranks only 165th in GDP/capita terms. Gradual de-centralization of the economy sincethe early 1990s has allowed the development of a more diverse market economy that is increasingly

driven by an educated and business-minded middle class. This is highlighted by India's now world-

famous telecommunications and service sector, which has grown extensively over the past decade.

Increased variation has resulted in a reduction in India's agriculture dependency, although this sector

still supplies around 50% of the country's income. Manufacturing remains strong, representing more

than a quarter of output.

However, despite economic expansion and development of its service sector, economic disparity

remains a severe problem for India. Almost a third of Indians lived in poverty in 2011 and constant

population growth makes it hard to increase living standards. For illustration, India welcomed its 1

billionth inhabitant in 2000. In just 12 years since then the population has increased to over 1.2 billion!

In order to conduct this MRP-1 report we have done primary research to know the performance of four

major cement players with respect to customer loyalty. We have also done the financial analysis of

four major players of cement industry through secondary data for last five years, which includes

aggregate industry ratio analysis, separate company’s ratio analysis, aggregate industry sales trend of

last ten years and production trend of last five years. We have also done the various analysis like

Porter’s five force model, OT Analysis, PEST Analysis,


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CONTENT

Certificate by the guide..........................................................................................I

Candidate’s statements..........................................................................................II

Preface………………………………………………………………………….....III

Acknowledgments………………………………………………………………...IVExecutive summary………………………………………………………………..V

SR. NO. PARTICULARS PAGE

NO.CHAPTER-1 INTRODUCTION OF THE INDUSTRY

1.1 Current Scenarios 1

1.2 History of Cement 3

1.3 Process Technology 9

1.4 Development of The Cement Industry 10

1.5 Historical Synthetic Cement Production 151.6 Production Scenario 17

1.7 The Manufacturing Process 21

1.8 Environmental Regulation 24

CHAPTER-2 MAJAR PLAYER OF CEMENT INDUSTRY

2.1 J K Cement Ltd. 27-31

2.2 J K Lakshmi Cement Ltd. 32-372.3 Shree Cement Ltd. 38-432.4 ACC Cement Ltd. 43-47

2.5 Ultra Tech Cement Ltd. 47-53

CHEPTER-3 MAICRO ANALSIS OF CEMENT INDUSTRY

3.1 Industry Life Cycle 54-57

3.2 Porters Five Force Model 58-65

3.3 Opportunities and Threats 66-67

3.4 Driving Forces 67-713.5 PEST Analysis 72-793.6 SWOT Analysis 79-813.7 Economic Future of Indian Cement 81-823.8 Key Success factor in the Cement Industry 833.9 Industry Dominant Economic Factors 84-88

3.10 Strategic Group Mapping 89-91CHAPTER-4 FINANCIAL ANALYSIS4.1 Introduction 934.2 Filtrations 94

4.3 Ratio Analysis 95-1064.4 Trade Analysis 106-115

CHAPTER-5 RESEARCH FINDINGS & CONCLUSION

5.1 RESEARCH FINDINGS 116


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5.2 CONCLUSION 117

CHAPTER-6 BUSINESS-PLAN

6.1 INTRODUCTION 119-124

6.2 Objective 125-125

6.2.1 Vision 125

6.2.2 Mission 1256.3 COMPANY DESCRIPTION 126

6.4 BRAND INFORMATION 126

6.4.1 Brand name 126

6.4.2 brand details 126

6.5 STP ANALYSIS 127

6.6 METHOD OF DISTRIBUTION & SALES

PROMOTION

127

6.7 Projected income statement 130

6.8 projected balance sheet 131

6.9 Projected cash flow statement 132

6.10 SOURCE OF FINANCE 133

6.11 Depreciation schedules 133

6.12 Salary structure 133

CHAPTER-7 BIBLIOGRAPHY 134

CHAPTER-8 ANNEXUREProfit & Loss Account

Balance Sheet

CHAPTER-9 LIMITATION OF REPOT


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LIST OF TABLE

SR.

NO.

PARTICULARS PAGE NO.

1.1 Cement Dispatches 5

1.2 Raw Materials For Portland Cement Manu faction 18

2.1 Major play Of Cement Industry 26

3.1 Cement Industry Life Cycle 56

3.2 Major Name Of Cement Industry 86

4.1 Capital Return on investment 94

4.2 Earnings Per Share 95

4.3 Current Ratio 97

4.4 Debt- Equity Ratio 99

4.5 Interest Coverage Ratio 101

4.6 Stock Turnover 102

4.7 Debtors turnover ratio 104

4.8 Total income 106

4.9 Total Expenses 107

4.10 Operating Profit 109

4.11 PBDT 110

4.12 Total Share Capital 111

4.13 Total Liability 112

4.14 Investment 113

4.15 Total Assets 115


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LIST OF FIGURES & GRAPHS

SR.

NO.

PARTICULARS PAGE

NO.1.1 Cement Dispatches 23

3.1 Industry Life Cycle 54

3.2 Cement Industry Life Cycle 56

3.3 Five Forces Model Of Competition 58

3.4 Geographical Coverage 89

3.5 Price VS. Brand 90

4.1 Capital Return on investment 96

4.2 Earnings Per Share 98

4.3 Current Ratio 100

4.4 Debt- Equity Ratio 101

4.5 Interest Coverage Ratio 103

4.6 Stock Turnover 105

4.7 Debtors turnover ratio 106

4.8 Total income 108

4.9 Total Expenses 109

4.10 Operating Profit 110

4.11 PBDT 111

4.12 Total Share Capital 112

4.13 Total Liability 113

4.14 Investment 114

4.15 Total Assets 115


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1. INDUSTRY ANALYSIS

1.1 CURRENT SCENARIOS

The Indian cement industry is the second largest producer of quality cement, which meets

global standards. The cement industry comprises 130 large cement plant sand more than 300

mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons

which was 166.73 million tons at the end of the year 2006-07. Cement production during

April to March 2007-08 was 168.31 milliontons as compared to 155.66 million tons during

the same period for the year 2006-07.Despatches were 167.67 million tons during April to

March 2007- 08 whereas155.26 during the same period. During April-March 2007-08,

cement export was3.65 million tons as compared to 5.89 during the same period. Cementindustry in India is currently going through a consolidation phase. Some examples of

consolidation in the Indian cement industry are: Gujarat Ambujatakinga stake of 14 per cent

in ACC, and taking over DLF Cements and Modi Cement; ACCtaking over IDCOL; India

Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the

cement business of L&T, Indian Rayon's cementdivision, and Sri Digvijay Cements. Foreign

cement companies are also picking upstakes in large Indian cement companies. Swiss cement

major Holcim has picked up14.8 per cent of the promoters' stake in Gujarat Ambuja Cements

(GACL).

The cement industry is one of the main beneficiaries of the infrastructure boom. With robust

demand and supply, the industry has bright future. The Indian Cement Industry with total

capacity of 165 million tones is the second largest after China. Cement industry is dominated

by 20 companies who account for over 70% of the market. Individually no company accounts

for over 12% of the market. The major players like L&T and ACC have been quiet successful

in narrowing the gap between demand and supply. Private housing sector is the majorconsumer of cement (53%) followed by the government infrastructure sector. forecasted to

grow by over 22% by 2009-10 from 2007-08.Among the states, Maharashtra has the highest

share in consumption at12.18%,followed by Uttar Pradesh, In production terms, Andhra

Pradesh is leading with 14.72% of total production followed by Rajasthan. Cement

production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total

production of 147.8 mt (million tons). Due to rising demand of cement the sales volume of

cement companies are also increasing & companies reporting higher production, higher salesand higher profits. The net profit growth rate of cement firms was 85%.Cement industry has


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contributed around 8% to the economic development of India. Outsiders (foreign players)

eyeing India as a major market to invest in the form of either merger or FDI (Foreign Direct

Investment). Cement industry has a long way to go as Indian economy is poised to grow

because of being on verge of development

Economic Trends

India is among the fastest-growing economies in the world, with close to 8% annual

growth since 2002, and expected to be sustained for the next 5 years as well. Inflation rate

remained below 5% between 2001 to 2007, but has since increased, touching 8.75% in May

2008. The business regulatory environment is fairly open, and follows free-marketcompetition principles. All quantitative restrictions on trade were removed in 2001, except

for a few highly sensitive goods. Trade as a % of GDP has risen from 13% in 1991 to nearly

30.2% in 2005-06. The total cumulative foreign direct investment (FDI) received into India

up to March 2007 was US$ 54.63 billion, of which Italy‘s share is about 1.2%. The monetary

unit of India is Indian Rupee (1 Indian Rupee = 100 paise). The exchange rate of Indian

Rupee is Euro 1 = Rs. 63.20 and US$ 1 = Rs. 40.45 (March 2008 - Reserve Bank of India).

Demographics

India is a unique market on account of its diversity in age, income, and urban-rural

demographics. Nearly 58 million households, comprising 32.3% of India‘s dwelling units,

live in urban areas. Nearly 38% of urban households are in middle and higher income strata,

and only 14% of rural households have similar income levels.

Income Classification

Though the population is more than 1.1 billion, the real consuming class of 300 million

people outnumbers several of the world‘s large markets in terms of market potential. Of

these, around 150 million people (2 million very rich and 30 million rich households)

represent the consuming potential, particularly for lifestyle goods and services.

• There are close to 80,000 high net worth Individuals in India, with saving and Assets

exceeding US$1 million.


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• At least 50,000 households buy premium cars every year (priced at US$ 30,000 and

above)

• The market for luxury goods is estimated to be Rs 100 billion, with over 2 million

Indians estimated to be engaging in some luxury purchase or the other each year.

1.2 THE HISTORY OF CEMENT

The history of the cement industry in India dates back to the 1889 when a Kolkata-based

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

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

in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War

I gave the first initial thrust to the cement industry in India and the industry started growing at

a fast rate in terms of production, manufacturing units, and installed capacity. This stage was

referred to as the Nascent Stage of Indian Cement Company. In 1927, Concrete Association

of India was set up to create public awareness on the utility of cement as well as to propagate

cement consumption.

The cement industry in India saw the price and distribution control system in the year 1956,

established to ensure fair price model for consumers as well as manufacturers. Later in 1977,

government authorized new manufacturing units (as well as existing units going for capacity

enhancement) to put a higher price tag for their products. A couple of years later, government

introduced a three-tier pricing system with different pricing on cement produced in high,

medium and low cost plants.

Cement Company, in any country, plays a major role in the growth of the nation. Cement

industry in India was under full control and supervision of the government. However, it got

relief at a large extent after the economic reform. But government interference, especially in

the pricing, is still evident in India. In spite of being the second largest cement producer in

the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The

reason behind this is the poor rural people who mostly live in mud huts and cannot afford to

have the commodity. Despite the fact, the demand and supply of cement in India has grown

up. In a fast developing economy like India, there is always large possibility of expansion of

cement industry.


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Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in India. In fact the

domestic demand of cement has surpassed the economic growth rate of India. The cement

consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement

consumption, the state of Maharashtra leads the table with 12.18% consumption, followed by

Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14.72% of

production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total

production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the

production of cement in India was 101.04 MT comparing to 95.05 MT during the same

period in the previous year. During October 2009, the total cement production in India was

12.37 MT compared to a production of 11.61 MT in the same month in the previous year.

The cement companies are also increasing their productions due to the high market demand.

The cement companies have seen a net profit growth rate of 85%. With this huge success, the

cement industry in India has contributed almost 8% to India's economic development.

Technology Up-gradation

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

gradation and assimilation is taking place. Currently, almost 93% of the total capacity is

based entirely on the modern dry process, which is considered as more environment-friendly.

Only the rest 7% uses old wet and semi-dry process technology. There is also a huge scope of

waste heat recovery in the cement plants, which lead to reduction in the emission level and

hence improves the environment.

Cement Dispatches

Cement industry in India has successfully maintained almost total capacity utilization levels,

which resulted in maintaining a 10% growth rate. In 2006-07, the total dispatch was 155 MT,

which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement dispatch of

12.22 MT, which was almost 9% higher than the total cement dispatch of 11.21 MT in the

same month in the previous year.


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Table-1.1

Particular 2008-09 (Apr-Oct) (in MT) 2007-08 (Apr-Oct) in MT

Production 101.04 95.05

Despatches (Excluding

Export)

100.24 94.33

Export 1.46 2.16

Capacity Utilization (%) 85 93

Mergers and Acquisitions in Cement Industry in India

UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become

biggest cement company in India.

World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund

and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a

cost of US$ 124.91 million.

Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim

Industries had in Shree Digvijay Cement.

French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of

US$ 14.35 million.

Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The

company utilized various open market transactions to increase its stakes. It invested

US$ 1.8 billion for that.

Recent Investments in the Indian Cement Industry

In a recent announcement, the second largest cement company in South India, Dalmia

Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3

years to add 10 MT capacity.

Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total

capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1

billion.

India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil

Nadu at a cost of US$ 104 billion.


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Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement

plant in Maharashtra. It will invest US$ 463.2 million for that.

Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development

Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$221.36 million.

Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT

cement plant in Orissa

- See more at: http://business.mapsofindia.com/cement/#sthash.emOox1fS.dpuf

Government Policies

Government policies have affected the growth of cement plants in India in various stages.

The control on cement for a long time and then partial decontrol and then total decontrol has

contributed to the gradual opening up of the market for cement producers. The stages of

growth of the cement industry can be best described in the following stages:

Price and Distribution Controls (1940-1981)

During the Second World War, cement was declared as an essential commodity under the

Defense of India Rules and was brought under price and distribution controls which resultedin sluggish growth. The installed capacity reached only 27.9MT by the year 1980-81.

Partial Decontrol (1982-1988)

In February 1982, partial decontrol was announced. Under this scheme, levy cement quota

was fixed for the units and the balance could be sold in the open market. This resulted in

extensive modernization and expansion drive, which can be seen from the increase in the

installed capacity to 59MT in 1988-89 in comparison with the figure of a mere 27.9MT in

1980-81, an increase of almost 111%.

Total Decontrol (1989)

In the year 1989, total decontrol of the cement industry was announced. By decontrolling the

cement industry, the government relaxed the forces of demand and supply. In the next two

years, the industry enjoyed a boom in sales and profits. By 1992, the pace of overall

economic liberalization had peaked; ironically, however, the economy slipped into recession


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taking the cement industry down with it. For 1992-93, the industry remained stagnant with no

addition to existing capacity.

Government Controls

The prices that primarily control the price of cement are coal, power tariffs, railway, freight,

royalty and cess on limestone. Interestingly, all of these prices are controlled by government.

Opportunities and challenges

The glue that holds the infrastructure sector is cement and the growth of cement industry is

directly linked to the growth of infrastructure sector.

India today is the second fastest growing economy in the world with the cement andconstruction sector being the prime movers. The Indian cement industry with a total installed

capacity of 219 million tonnes is the second largest producer in the world and has been

growing at a rate of 9 to 10 percent per annum. With a large percentage of Indian population

being below the age of 25, the construction activity is expected to make a significant

contribution in the context of growing housing needs, development of roads and other

infrastructure, urbanization, etc.

It is the construction sector which shares the blame of global economic slowdown leading to

slackening of demand for housing; but withstanding that hard time, our cement sector is still

growing at a 10 percent when compared to the global average of 5 percent. Indian industry is

fortunate in having an active support and services of the National Council for cement &

Building Materials with an excellent R&D Infrastructure and invaluable intellectual capital.

In a recent International Seminar on Cement & Building Materials in New Delhi,

ShriJyotiraditya M. Scindia, Minister of State for Commerce & industry, said: "In spite of

global slowdown and reduction in demand, cement industry needs to be complimented for

weathering the downturn and recording a commendable growth of around 8 percent in 2007-

08 as well as in 2008-09. In the current year 2009-10 so far, the pace of growth of cement

industry has accelerated significantly above double digit."

The Indian cement industry has achieved an installed capacity of 242 million tonnes and is

targetted to reach 300 million tonnes by 2011-12 and 600 million by 2020. India has 97

percent of the installed capacity through dry process; the Indian cement industry has been


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adopting latest technologies for energy conservation and pollution control as well as on-line

process of quality control based on expert systems and laboratory automation.

Despite having high demand in India, our per capita cement consumption is very low, where

the world average is 396 kg, in India the per capita consumption is only 156 kg. India being

the country of young population has a huge potential and its ushering social and economic

base will improve the domestic consumption.

Indian cement industry is efficient and eco-friendly, when it comes to energy conservation,

the best level is achieved by the industry as far as data goes of 687 kilo calories per kg of

clinker and 66 KWh per tonne cement are at par with the best achieved levels in the world.

The cement industry effort towards control of emissions, preservations of ecology and its

Corporate Social Responsibility for Environmental Protection are laudable. The sustainable

and long- standing efforts towards reduction of carbon footprint is commendable â€― CO2

emission of 0.82 tonnes per tonne of cement produced in 2006, a sustainable drop from the

level of 1.12 in 1996 and 0.94 in 2000.

On the technology front, the Indian cement industry has largely adopted state-of-art

manufacturing technologies, system for cogeneration of power and technologies for low NOx

and SO2 emission have yet to achieve many targets. The initiative taken by cement industryfor waste utilization are evident from the fact that production of blended cement in the

country in the year 2008-09 was as high as 74 percent as against only 36 percent in 2000-01.

The Indian cement industry annually recycles more that 30 million tones of fly ash, apart

from consuming the entire quality of granulated blast furnace slag- another waste generated

by steel plants in our country.

The rising cost of energy transportation and persistent raw material pressures have been

playing a heavy strain on the cement and construction industry. As a result, Indian

Companies have to not only explore alternate sources of energy and materials but also strive

to enhance operational efficiency. But Indiaâ€™s potential for growth remains intact. The

need of the hour is to spend invest adequately in developing human resources capable of

addressing the professional needs of construction industry like application of advanced

technologies and construction practices, project management construction, litigation,

insurance and finance, etc.


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Indian cement industry is in search of competitive advantage, therefore, it is continuously

improving on the innovation and optimization front. While embracing its commitment to

grow and compete globally, it is however not neglecting the ecological and environmental

needs. Cement sector is adopting sustainable development practices and conservation

measures while harnessing energy for its use. The industry if fully committed and partner

global efforts to reduce Green House Gases impact and mitigating the evil of climate change.

1.3 PROCESS TECHNOLOGY

While adding fresh capacities, the cement manufacturers are very conscious of the

technology used. In cement production, raw materials preparation involves primary and

secondary crushing of the quarried material, drying the material (for use in the dry process) or

undertaking a further raw grinding through either wet or dry processes, and blending the

materials. Clinker production is the most energy-intensive step, accounting for about 80% of

the energy used in cement Production. Produced by burning a mixture of materials, mainly

limestone, silicon oxides, aluminum, and iron oxides, clinker is made by one of two

production processes: we tordry; these terms refer to the grinding processes although other

configurations and mixed forms (semi-wet, semi-dry) exist for both types. In the dry process,

the raw materials are ground, mixed, and fed into the kiln in their dry state. In the wet

process, the crushed and proportioned materials are ground with water, mixed, and fed into

the kiln in the form of slurry. Different types of cement that are produced in India are:•

Ordinary Portland cement (OPC):OPC, popularly known as grey cement, has 95 per cent

clinker and 5 per centgypsum and other materials. It accounts for 70 per cent of the total

consumption.• Portland Pozzolana Cement (PPC):PPC has 80 per cent clinker, 15 per cent

pozzolana and 5 per cent gypsum and accounts for 18 per cent of the total cement

consumption. It is manufactured because it uses fly ash/burnt clay/coal waste as the main

ingredient.• White Cement: White cement is basically OPC - clinker using fuel oil (instead of

coal) with iron oxide content below 0.4 per cent to ensure whiteness. A special cooling

technique is use din its production. It is used to enhance aesthetic value in tiles and flooring.

White cement is much more expensive than grey cement.


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1.4 DEVELOPMENT OF THE CEMENT INDUSTRY

Cement is an indispensable building material required for the construction of houses, bridges,

tunnels, dams etc.

The start of cement manufacturing in India goes back to 1904, when the first cement factory

was set up in Madras. Its production was as low as 30 tonnes a day, as such it failed.

The real beginning of this industry came up in 1913, when three units were set up at ICatni

(Madhya Pradesh) in 1915, Lekheri (Tamil Nadu) in 1916 and Porbander (Gujarat) in 1913.

The First World War gave incentive to the industry and a few more factories were set up at

Japla (Bihar), Dwarka (Gujarat) and Banmore (Madhya Pradesh). In 1934, ten out of eleven

cement manufacturing companies merged together and formed one Associated Cement

Company (A.C.C.).

The Dalmia Group entered in the field of cement manufacturing in 1937. This group set'up its

factories at Dalmianagar Bihar, Dadri (Haryana) and Dalmiapuram (Tamil Nadu). At the time

of partition, there were 18 cement factories with an annual installed capacity of 21-15 Lakh

tons.

Three more factories were established just after independence at Talaiyuthu (Tamil Nadu),

Kottayam (Kerala) and Sikka (Gujarat).

The production of cement was boosted up after 1950. It is because of developmental work in

the country, like construction of multipurpose river valley projects, means of transport,

industries and housing activity.

Percentage production of cement

In order to meet the growing demand of cement, a number of factories were set up in the

country. Presently, there are 120 factories.

The industry depends upon the availability of limestone, clay or shale and gypsum. These

natural materials are mined in different regions; as such factories are set up close to the

sources of raw material.


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Development of means of transport and availability of capital are other factors which

determine development of cement industry.

Although, in India, cement manufacturing has developed in different states except a few like

Punjab, yet 85% of the cement manufacturing is carried on in the states of Tamil Nadu,

Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh and Bihar. Eleven types of cement is

manufactured in India like

Portland 71%

Pozollana 18%

Slag Cement 10%

Rest Others.

Tamil Nadu.

The state of Tamil Nadu has a very well developed cement industry.

Tamil Nadu.

The state of Tamil Nadu has a very well developed cement industry. There are eight factories,

ThsTalukapatli cement factory is one of the largest in the country. Its annual capacity is about

10 lalchtonnes.

The industry is attributed to enormous reserves of raw material in the state, availability of

cheap labor and demand for cement.

Other cement factories are at Madhukarni, Dalmiapuram, Poliyur, Chhattisgarh, Alangulam,

Talaiyuthu, Sankaridurg and Aryalur.

Madhya Pradesh and Chhattisgarh.

These two states are the largest producer of cement in India. The centres are at Jamul, Satna,

Banmore, Katni, Gopalnagar, Durg, Kaymore, Tilda, Khor, Mandhar.


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The Akaltara Cement Factory produces about 11 lakh tonnes of cement every year. New

plants are located at Rewa and Neemuch.

Gujarat.

Cement manufacturing is carried on at a number of centres in the state of Gujarat. The

Saurasthra Cement Company and Digvijay Company dominate cement production in the

state.

The Vadodra, Okha, Viraval, Bhavnagar factories are located at Ranavav, Sikka,

Ahmedabad, Dwarka, Porbander, Sevalia and Amiragarh. Gujarat state has rich resources of

raw material required for cement manufacturing.

Bihar.

Cement manufacturing in the Bihar state is done at Japla, Sindri, Dalmianagar, Kalyanpur,

Khalari and Chaibasa. Two new factories have been set up at Bhawanthpur. The rich coal and

lime-stone reserves are the major assets for the development of cement manufacturing.

Rajasthan.

Rajasthan has rich potentials for cement manufacturing. Cement factories are located at

Lakheri, SawaiMadhopur, Udaipur, Chittorgarh, Bundi, Banas, Beawar, Nimbaheda and

Sirohi.

Cement is also produced in various other states of the country. These are :

Karnataka: Bangalore, Wadi, Hosdurga, Bagalkot, Shahabad, Krukunta. Dadri.

Himachal Pradesh: Bilaspur (Gaggal) Paonta Sahib.

Kerala: Kottayam

Andhra Praqdesh: Hyderabad and Vijaywada, Panyon, Tandur, Adilabad, Vishakhapatnam.

Uttar Pradesh: Allahabad Churk, Dalla Chun

Maharashtra: Chanda, Ratnagiri, Mumbai, Kohlapur.


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India is producing different varieties of cement like Ordinary Portland Cement (OPC),

Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well

Cement, White Cement, etc.

These different varieties of cement are produced strictly under BIS specifications and the

quality is comparable with the best in the world.

The cement industry has kept pace with technological advancement and modernization.

Export of cement was 3-14 million tonnes (provisional) in 1999- 2000. Improvement in the

quality of Indian Cement has found its ready market in a number of countries named earlier.

In order to meet the increasing trained manpower requirement of the Indian Cement Industry,

a Human Resource Development (HRD) Project has been implemented with assistance from

World Bank and DANIDA (Danish International Development Agency).

Under this Project, four Regional Training Centres have been set up at ACC -Jamul (M.P),

Dalmia Cement Dalmiapuram (T.N.), JK Cement Nimbahera (Rajasthan) and Gujarat

Ambuja, Ambuja Nagar (Gujarat).


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1.5 HISTORICAL SYNTHETIC CEMENT PRODUCTION

A cement is a binder, a substance that 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 resembling modern concrete that was made from crushed

rock with burnt lime as binder. The volcanic ash and pulverized brick additives that were

added to the burnt lime to obtain a hydraulic binder were later referred to as cementum,

cimentum, cäment, and cement.

Cements used in construction can be characterized as being either hydraulic or non-

hydraulic. Hydraulic cements (e.g. ,Portland cement) harden because of hydration, a

chemical reaction between the anhydrous cement powder and water. Thus, they can harden

underwater or when constantly exposed to wet weather. The chemical reaction results in

hydrates that are not very water-soluble and so are quite durable in water. Non-hydraulic

cements do not harden underwater; for example, slaked limes harden by reaction with

atmospheric carbon dioxide.

The most important uses of cement are as an ingredient in the production of mortar in

masonry, and of concrete, a combination of cement and an aggregate to form a strong

building material.

Non-hydraulic cement such as slaked limes (calcium hydroxide mixed with water), harden

due to the reaction of carbonation in presence of the carbon dioxide naturally present in the

air. Calcium oxide is produced by lime calcination at temperatures above 825 °C (1,517 °F)

for about 10 hours at atmospheric pressure:

CaCO3 → CaO + CO2

The calcium oxide is then spent mixing it to water to make slaked lime:

CaO + H2O → Ca(OH)2

Once the water in excess from the slaked lime is completely evaporated (this process is

technically called setting), the carbonation starts:

http://en.wikipedia.org/wiki/Binder_%28material%29http://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Opus_caementiciumhttp://en.wikipedia.org/wiki/Opus_caementiciumhttp://en.wikipedia.org/wiki/Masonryhttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Brickhttp://en.wikipedia.org/wiki/Portland_cementhttp://en.wikipedia.org/wiki/Portland_cementhttp://en.wikipedia.org/wiki/Mineral_hydrationhttp://en.wikipedia.org/wiki/Anhydroushttp://en.wikipedia.org/wiki/Mortar_%28masonry%29http://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Construction_aggregatehttp://en.wikipedia.org/w/index.php?title=Slaked_limes&action=edit&redlink=1http://en.wikipedia.org/wiki/Calcium_hydroxidehttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Atmospheric_pressurehttp://en.wikipedia.org/wiki/Atmospheric_pressurehttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Calcium_hydroxidehttp://en.wikipedia.org/w/index.php?title=Slaked_limes&action=edit&redlink=1http://en.wikipedia.org/wiki/Construction_aggregatehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Mortar_%28masonry%29http://en.wikipedia.org/wiki/Anhydroushttp://en.wikipedia.org/wiki/Mineral_hydrationhttp://en.wikipedia.org/wiki/Portland_cementhttp://en.wikipedia.org/wiki/Brickhttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Masonryhttp://en.wikipedia.org/wiki/Opus_caementiciumhttp://en.wikipedia.org/wiki/Opus_caementiciumhttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Binder_%28material%29


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Ca(OH)2 + CO2 → CaCO3 + H2O

This reaction takes a significant amount of time because the partial pressure of carbon

dioxide in the air is small. The reaction of carbonation requires the air be in contact with the

dry cement, hence, for this reason the slaked lime is a non-hydraulic cement and cannot be

used under water.

Conversely, the chemistry ruling the action of the hydraulic cement is the hydration.

Hydraulic cements (such as the Portland cement) are made of a mixture of silicates and

oxides, the four main components being:

Belite (2CaO·SiO2);

Alite (3CaO·SiO2);

Celite (3CaO·Al2O3);

Brownmillerite (4CaO·Al2O3·Fe2O3).

The reactions during the setting of the cement are:

(3CaO·Al2O3)2 + (x+8) H2O → 4 CaO·Al2O3·xH2O + 2 CaO·Al2O3·8H2O

(3CaO·Al2O

3) + 12 H

2O + Ca(OH)

2 → 4 CaO·Al

2O

3·13 H

2O

(4CaO·Al2O3·Fe2O3) + 7 H2O → 3 CaO·Al2O3·6H2O + CaO·Fe2O3·H2O

And during the hardening (the chemistry of the reaction of hydration is still not completely

clear):

(3CaO·SiO2)2 + (x+3) H2O → 3 CaO2·SiO2·xH2O + 3 Ca(OH)2

(2CaO·SiO2)2 + (x+1) H2O → 3 CaO2·SiO2·xH2O + Ca(OH)2

The silicates are responsible of the mechanical properties of the cement, the celite and the

browmillerite are essential to allow the formation of the liquid phase during the cooking. The

chemistry of the above listed reactions is not completely clear and is still the object of

research.

http://en.wikipedia.org/wiki/Portland_cementhttp://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/Celitehttp://en.wikipedia.org/wiki/Brownmilleritehttp://en.wikipedia.org/wiki/Brownmilleritehttp://en.wikipedia.org/wiki/Celitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Portland_cement


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1.6 PRODUCTION SCENARIO

The cement industry worldwide is facing growing challenges in the context of saving

material and energy resources as well as reducing its CO2 emissions. The International

Energy Agency highlighted in its 'Road Map for the Cement Industry' that the main levers for

the cement producers are the use of alternative materials, be it as fuel or raw material and in

addition the reduction of the clinker/cement factor by utilisation of well tried and proven

materials like slag, fly ash, pozzolanas or limestone fines. This underlines that in the years to

come cement will depend on OPC clinker to a high degree. New cements will therefore most

certainly first take into account higher amounts of main constituents besides clinker which

show pozzolanic or latent hydraulic properties.

Artificial materials that originate from natural or industrial resources but require additional

thermal treatment and/or activation may also have a role to play. It is not clear at present to

what extent cements based on magnesia can play a role. On the other hand, sulphoaluminate

cements may have a significant role to play. Unfortunately, due to their specific raw materials

as well as their performance in concrete they will most probably not be able to substitute

relevant parts of today's cement markets.

Raw Material

The first step in the manufacture of Portland cement is to combine a variety of raw

ingredients so that the resulting cement will have the desired chemical composition. These

ingredients are ground into small particles to make them more reactive, blended together, and

then the resulting raw mix is fed into a cement kiln which heats them to extremely high

temperatures.

Since the final composition and properties of Portland cement are specified within rather

strict bounds, it might be supposed that the requirements for the raw mix would be similarly

strict. As it turns out, this is not the case. While it is important to have the correct proportions

of calcium, silicon, aluminum, and iron, the overall chemical composition and structure of the

individual raw ingredients can vary considerably. The reason for this is that at the very high

temperatures in the kiln, many chemical components in the raw ingredients are burned off

and replaced with oxygen from the air. Table 3.3 lists just some of the many possible raw

ingredients that can be used to provide each of the main cement elements.


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Table-1.2 Examples of raw materials for Portland cement manufacturing

Calcium Silicon Aluminum Iron

Limestone Clay Clay Clay

Marl Marl Shale Iron ore

Calcite Sand Fly ash Mill scale

Aragonite Shale Aluminum ore refuse Shale

Shale Fly ash Blast furnace dust

Sea Shells Rice hull ash

Cement kiln dust Slag

The ingredients listed above include both naturally occurring materials such as limestone

and clay, and industrial byproduct materials such as slag and fly ash. From Table 3.3 it may

seem as if just about any material that contains one of the main cement elements can be

tossed into the kiln, but this is not quite true. Materials that contain more than minor (or in

some cases trace) amounts of metallic elements such as magnesium, sodium, potassium,

strontium, and various heavy metals cannot be used, as these will not burn off in the kiln and

will negatively affect the cement. Another consideration is the reactivity, which is a function

of both the chemical structure and the fineness. Clays are ideal because they are made of fine

particles already and thus need little processing prior to use, and are the most common source

of silica and alumina. Calcium is most often obtained from quarried rock, particularly

limestone (calcium carbonate) which must be crushed and ground before entering the kiln.

The most readily abundant source of silica is quartz, but pure quartz is very unreactive even

at the maximum kiln temperature and cannot be used.

Grinding and blending prior to entering the kiln can be performed with the raw ingredients inthe form of a slurry (the wet process) or in dry form (the dry process). The addition of water

facilitates grinding. However, the water must then be removed by evaporation as the first step

in the burning process, which requires additional energy. The wet process, which was once

standard, has now been rendered obsolete by the development of efficient dry grinding

equipment, and all modern cement plants use the dry process. When it is ready to enter the

kiln, the dry raw mix has 85% of the particles less than 90 £gm. in size


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The next step in the process is to heat the blended mixture of raw ingredients (the raw mix) to

convert it into a granular material called cement clinker. This requires maximum

temperatures that are high enough to partially melt the raw mix. Because the raw ingredients

are not completely melted, the mix must be agitated to ensure that the clinker forms with a

uniform composition.

This description refers to a standard dry-process kiln as illustrated in Figure 3-2. Such a kiln

is typically about 180 m long and 6 m in diameter, has a downward slope of 3-4%, and

rotates at 1-2 revolutions per minute.

Suspension preheaters and claimers

The chemical reactions that occur in the dehydration and calcination zones are

endothermic, meaning that a continuous input of energy to each of the particles of the raw

mix is required to complete the reaction. When the raw mix is piled up inside a standard

rotary kiln, the rate of reaction is limited by the rate at which heat can be transferred into a

large mass of particles. To make this process more efficient, suspension preheaters are used

in modern cement plants to replace the cooler upper end of the rotary kiln (see Figure 3-

2). Raw mix is fed in at the top, while hot gas from the kiln heater enters at the bottom. As

the hot gas moves upward it creates circulating ―cyclones‖ that separate the mix particles as

they settle down from above. This greatly increases the rate of heating, allowing individual

particles of raw mix to be dehydrated and partially calcined within a period of less than a

minute.

Grinding and the addition of gypsum

Once the nodules of cement clinker have cooled, they are ground back into a fine powder in

a large grinding mill. At the same time, a small amount of calcium sulfate such as gypsum

(calcium sulfate dehydrate) is blended into the cement. The calcium sulfate is added to

control the rate of early reaction of the cement, as will be discussed in Section 5.3. At this

point the manufacturing process is complete and the cement is ready to be bagged or

transported in bulk away from the plant. However, the cement is normally stored in large

silos at the cement plant for a while so that various batches of cement can be blended together

to even out small variations in composition that occur over time. Cement manufacturers go

to considerable lengths to maintain consistent behavior in their cements over time, with the


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most important parameters being the time to set, the early strength development, and the

workability at a given water content.

Cement kiln dust

As the hot kiln gas moves through the kiln, it carries with it the smallest particles of the raw

mix as well as volatilized inorganic substances such as alkalis (sodium and potassium) and

chlorides. As the gas cools, the volatiles condense back round the small particles, and the

resulting powder is called cement kiln dust (CKD). In the old days, the CKD was simply

vented out of the smokestack, after which it would continuously settle out of the air to create

a thin coating of grey dust on the surrounding countryside. This is no longer allowed. In

fact, environmental restrictions even prevent CKD from being buried in landfills because ofthe tendency for the alkalis and chlorides to leach into groundwater. In modern cement

plants, the CKD is removed in the suspension preheater and by and electrostatic precipitators

located near the base of the smokestack.

Tricalcium Silicate (C3S)

C3S is the most abundant mineral in Portland cement, occupying 40 – 70 wt% of the cement,

and it is also the most important. The hydration of C3S gives cement paste most of its

strength, particularly at early times.

Dicalcium Silicate (C2S)

As with C3S, C2S can form with a variety of different structures. There is a high temperature

tructure in that is in equilibrium at intermediate

An important aspect of C2 -C2S

has a very stable crystal structure that is completely unreactive in water.

structure is easil

is never present in portland cement. 2S is irregular, but

considerably less so than that of C3S, and this accounts for the lower reactivity of C2S. The

C2S in cement contains slightly higher levels of impurities than C3S. According to Taylor [2

], the overall substitution of oxides is 4-6%, with significant amounts of Al2O3, Fe2O3, and

K 2O.


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Tricalcium Aluminate (C3A)

Tricalcium aluminate (C3A) comprises anywhere from zero to 14% of a portland

cement. Like C3S, it is highly reactive, releasing a significant amount of exothermic heat

during the early hydration period. Unfortunately, the hydration products of formed from C3A

contribute little to the strength or other engineering properties of cement paste. In certain

environmental conditions (i.e., the presence of sulfate ions), C3A and its products can actually

harm the concrete by participating in expansive reactions that lead to stress and cracking.

TetracalciumAluminoferrite (C4AF)

A stable compound with any composition between C2A and C2F can be formed, and the

cement mineral termed C4AF is an approximation that simply the represents the midpoint of

this compositional series. The crystal structure is complex, and is believed to be related to

that of the mineral perovskite. The actual composition of C4AF in cement clinker is generally

higher in aluminum than in iron, and there is considerable substitution of SiO 2 and

MgO. Taylor reports a typical composition (in normal chemical notation) to be

Ca2AlFe0.6Mg0.2Si0.15Ti0.5O5. However, the composition will vary somewhat depending on

the overall composition of the cement clinker.

1.7THE MANUFACTURING PROCESS

What is cement?

Cement is a fine powder which sets after a few hours when mixed with water, and then

hardens in a few days into a solid, strong material. Cement is mainly used to bind fine

sand and coarse aggregates together in concrete. Cement is a hydraulic binder, i.e. it

hardens when water is added.

There are 27 types of common cement which can be grouped into 5 general categories

and 3 strength classes: ordinary, high and very high. In addition, some special cements

exist like sulphate resisting cement, low heat cement and calcium aluminate cement.


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The quarry is the starting point

Cement plants are usually located closely either to hot spots in the market or to areas with

sufficient quantities of raw materials. The aim is to keep transportation costs low. Basic

constituents for cement (limestone and clay) are taken from quarries in these areas.

A two-step process

Basically, cement is produced in two steps: first, clinker is produced from raw materials.

In the second step cement is produced from cement clinker. The first step can be a dry,

wet, semi-dry or semi-wet process according to the state of the raw material.

Making clinker

The raw materials are delivered in bulk, crushed and homogenised into a mixture which is

fed into a rotary kiln. This is an enormous rotating pipe of 60 to 90 m long and up to 6 m

in diameter. This huge kiln is heated by a 2000°C flame inside of it. The kiln is slightly

inclined to allow for the materials to slowly reach the other end, where it is quickly

cooled to 100-200°C.

Four basic oxides in the correct proportions make cement clinker: calcium oxide (65%),silicon oxide (20%), alumina oxide (10%) and iron oxide (5%). These elements mixed

homogeneously (called ―raw meal‖ or slurry) will combine when heated by the flame at a

temperature of approximately 1450°C. New compounds are formed: silicates, aluminates

and ferrites of calcium. Hydraulic hardening of cement is due to the hydration of these

compounds.

The final product of this phase is called ―clinker‖. These solid grains are then stored in

huge silos. End of phase one.

From clinker to cement

The second phase is handled in a cement grinding mill, which may be located in a

different place to the clinker plant. Gypsum (calcium sulphates) and possibly additional

cementitious (such as blastfurnace slag, coal fly ash, natural pozzolanas, etc.) or inert

materials (limestone) are added to the clinker. All constituents are ground leading to a

fine and homogenous powder. End of phase two. The cement is then stored in silos before being dispatched either in bulk or bagged.


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What is concrete?

Concrete is a solid material made of cement, sand, water, aggregates and often with

admixtures. When fresh, it has a certain workability and takes the form of the mould into

which it is put. When set and hardened, it is as strong as natural stone and resists time,

water, frost, mechanical constraints and fire. Typically, concrete is the essential material

used in all types of construction [residential (housing), non-residential (offices) and civil

engineering (roads, bridges, etc.)].

Figar-1.1


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1.8 ENVIRONMENTAL REGULATION

Republicans have made clear that they don‘t think President Obama‘s jobs plan, including

$50 billion for transportation infrastructure, will create jobs. They would rather remove

regulations that cost industry money. They say reducing this ―regulatory burden‖ will create

jobs — and they want to start with the cement industry.

During floor debate on the Cement Sector Regulatory Relief Act, Rep. Waxman shows a

picture of an elementary school located right next to a cement kiln.

The House is currently debating the Cement Sector Regulatory Relief Act, which would

eliminate EPA standards, passed last August, to reduce hazardous air pollution. Industry

hacks say regulations currently facing the cement industry could force the closure of 18 of the

nearly 100 U.S. cement plants and result in the loss of 4,000 manufacturing jobs. Democrats

— and the Congressional Research Service — refute those numbers. Republicans have been

toiling away all year to gut EPA regulations of all stripes — indeed, California Democrat

Henry Waxman, ranking member of the Energy and Commerce Committee, today called it

―the most anti-environment Congress in history,‖ having voted 136 times this session to

block environmental measures.

But the GOP says this one in particular is a jobs-killer. ―The cement industry is in its weakest

economic condition since the 1930s,‖ said Jason Altmire (R -PA) on the floor of the House.

He says the bill would simply remove an unnecessary barrier to industry. About 40 percent of

the cement used in the U.S. in a given year is used to surface highways. According to

Earthjustice, cement plants are among the nation‘s worst toxic polluters. Cement kilns are the

second largest source of mercury emissions in the United States, after coal-fired power

plants. So essentially, this Republican bill is another government subsidy to the road industry,only this time we‘re paying with the air we breathe, the water we drink, and the food we eat.

http://www.opencongress.org/bill/112-h2681/showhttp://earthjustice.org/news/press/2010/epa-adopts-strong-protections-against-air-pollution-from-cement-kilnshttp://www.prnewswire.com/news-releases/cement-sector-regulatory-relief-act-of-2011-protects-vital-construction-jobs-129480898.htmlhttp://dc.streetsblog.org/wp-content/uploads/2011/10/waxman.jphttp://www.prnewswire.com/news-releases/cement-sector-regulatory-relief-act-of-2011-protects-vital-construction-jobs-129480898.htmlhttp://earthjustice.org/news/press/2010/epa-adopts-strong-protections-against-air-pollution-from-cement-kilnshttp://www.opencongress.org/bill/112-h2681/show


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It‘s true, 20 percent of construction workers are currently unemployed, and that represents a

significant economic and human problem. To address that problem, Democrats and

transportation advocates, including industry representatives, continue to urge Congress to

pass a multi-year transportation reauthorization — not gut life-saving environmental

standar ds. ―If these bills are enacted,‖ Waxman said on the floor, ―there will be more cases of

cancer, birth defects, and brain damage. The ability of our children to think and learn will be

impaired because of their exposure to mercury and other dangerous air pollutants.‖

―Mercury is so toxic just one seventieth of a teaspoon of mercury — or .0024 ounces — can

contaminate a 20-acre lake and render the fish in that lake poisonous to eat,‖ said Rep. James

Moran (D-VA). Waxman offered three amendments to the bill. One uses the rhetoric

Republicans have been using to block bills all year — requiring that the money used to

authorize the bill be offset elsewhere in the budget. But instead of requiring that offset

upfront, it would require that the cost offset be examined after the bill passes, and render the

bill ineffective if there is no offset. The other amendment would continue government

emissions enforcement if those emissions ―are harming brain development or causing

learning disabilities in infants or children.‖

The NIH says exposure to even low levels of mercury can reduce a child‘s IQ. Moran made

an economic argument, saying that those children have a harder time getting and keeping

jobs. He quoted independent scientific studies saying the cost of mercury pollution ―is as high

as $22,300 per IQ point per child, which cumulatively amounts to $8.7 billion in lost

potential per year.‖ ―The majority constantly urges us to balance the costs and benefits of

environmental regulation,‖ Moran said. ―But when the benefits of regulating hazardous

pollution substantially outweigh the costs, as they do with mercury, all of a sudden that

doesn‘t become an issue for debate.‖

―If we do not defeat this bill — if it were to be enacted — children will suffer,‖ he went on.

―Our economy will become weaker. The fact is, we have both a moral and an economic

responsibility to defeat this bill.‖

http://dc.streetsblog.org/2011/07/06/boxertwo-year-transpo-bill-will-save-600000-jobs/http://www.gop.gov/bill/112/1/hr2681http://www.nlm.nih.gov/medlineplus/ency/article/002473.htmhttp://www.nlm.nih.gov/medlineplus/ency/article/002473.htmhttp://www.nlm.nih.gov/medlineplus/ency/article/002473.htmhttp://www.nlm.nih.gov/medlineplus/ency/article/002473.htmhttp://www.gop.gov/bill/112/1/hr2681http://dc.streetsblog.org/2011/07/06/boxertwo-year-transpo-bill-will-save-600000-jobs/


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2. INTRODUCTION

There are a number of players prevailing in the cement industry in India. However, there are

around 20 big names that account for more than 70% of the total cement production in India.

The total installed capacity is distributed over around 129 plants, owned by 54 major

companies.

Table-2.1

No. Name production Installed capacity

1 J K Cement 12,782 16,000

2 J K Laksmi Cement 13,000 16,500

3 Acc cement 17,902 18,640

4 Shree cement 14,500 14,115

5 Ultatech cement 13,707 17,000

6 Gujarat ambuja 15,094 14,860

7 Grasim 14,649 14,115

8 Indin cement 8,434 8,810

9 Jaypee group 6,316 6,531

10 Century 6,636 6,300

11 Madrascement 4,550 5,470

12 Birla corp. 5,150 5,113


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2.1 J.K CEMENT LIMITED

INTRODUCTION

J.K. Cement Ltd. (JKC) is engaged in the cement production. The company produces two

types of cement, namely, White and Grey cement. It also produces and supplies water proof

cement. The company is the largest producer of grey cement in Northern India and the second

largest producer of white cement in India in terms of production capacity. The company's

manufacturing facilities are located in Nimbahera, Mangrol and Gotan, India. JKC exports its

products to countries including South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri

Lanka, Kenya, Tanzania, UAE and Nepal. JKC is headquartered in Kanpur, India.

J K Cement Limited (JK Cement) is one of the largest cement manufacturers in Northern

India and also the second largest white cement manufacturer in India by production capacity.

It is an affiliate of the J.K. Organization, which was founded by LalaKamlapatSinghania in

the year 1994. The Company produces 53-grade, 43-grade and 33-grade Ordinary Portland

Cement (OPC) grey cement, Portland Pozzolana Cement ('PPC') under grey and white

cement. JK Water proof is another product from JK Cements used for flooring, wall

application and other specialized applications. The products are marketed under the brand

names J.K. Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and

J.J White and camel for white cement products.

HISTORY

J.K cement started its commercial production in may 1975 in its first plant nimbahera in

rajasthan. The company was incorporated in the year 1994.

Today J.K cement is one of the largest cement manufacturers in north india. It is also second

largest producer of white cement in india. The company export white cement to countries like

south Africa, Nigeria, Singapore, Bahrain, Bangladesh, srilanka, Tanzania, UAE and Nepal.

The company has two manufacturing facilities located at nimbahera and mangrol in the state

of rajsthan. The company produces white cement and its production unit is located in gotan at

rajasthan. During august 2009, Allahabad HC had sanctioned the scheme of amalgamation of

jaykaycem a wholly owned subsidiary with the company. Jaykaycem was implementing 3

million tones per annum green field grey cement plant at mudhol, district bagalkot, Karnataka


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state which was at final stage of implementation. The installed capacity of grey cement of JK

cement with the merger incrased to 7.5 million tones per annum.

These plant have received various certifications ISO-9001:2000 for quality management

system. ISO-14001:2004 for environment management system and OHSAS-18001:2005 for

occupational health and safety systems. J.k cement ltd. Is part of the $3 billion conglomerate.

Jk organization. The company is promoted by DR.Gaurharisinghania& MR.

yadupatisinghania and entered cement business in 1975. 2ed largest white cement

manufacturer in india with 0.40 MTPA capacity and one of the leading grey cement

producers in north India with over 36 years of experience. And highly reputed brand with

extensive nation-wide distribution. Integrated cement manufacturing company with 7.5

MTPA grey cement capacity. Nimbahera, mangrol and gotan (rajashtan): 4.5 MTPA

Muddapur( Karnataka): 3 MTPA 105.5 MW of captive power Proximity and access to large

high quality reserves of limestone, sufficient to operate cement plants for the next 30 years.

Expanding domestic grey cement capacity to 10.5 MTPA and white cement capacity to 0.60

MTPA and wall putty capacity to 0.60 MTPA by se pt 2014.Jhajjar (Haryana): 105 MTPA

split grinding Gotan (Rajasthan): 0.20 MTPA white cement and 0.30 MTPA wall putty

Greenfield expansion in the middle east Fujairah (UAE): dual process plant – 0.6 MTPA

white cement or 1.0 MTPA grey cement J K cement‘s LT credit rating was recently

upgraded to AA – by care ratings Listed on national stock exchange (―NSE‖) and Bombay

stock exchange (―BSE‖) with a market capitalization of INR 23bn

TYPES OF PRODUCT

J k cement produces ordinary portland cement of 53-grade, 43-grade and 33-grade. It markets

these cements under the brand name J K cement and sarvashaktiman. It also manufactures

portland pozzoland cement and markets it under the name J K super. It markets white cement

under the name J K white and camel.

J.K cement has introduced water repellent material in powder form. It has also introduced

white cement based putty for plastering walls and ceiling and sells the same under the name

JK wall puty.


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No representation or warranty, express or implied, is made as to, and no reliance should be

placed on, the fairness, accuracy, completeness or correctness of the information or opinions

contained in this presentation. Such information and opinions are in all events not current

after the date of this presentation. Certain statements made in this presentation may not be

based on historical information or facts and may be "forward looking statements" based on

the currently held beliefs and assumptions of the management of J. K. Cement Limited

(―Company‖ or ―JKC‖), which are expressed in good faith and in their opinion reasonable,

including those relating to the Company‘s general business plans and strategy, its future

financial condition and growth prospects and future developments in its industry and its

competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other

factors, which may cause the actual results, financial condition, performance or achievements

of the Company or industry results to differ materially from the results, financial condition,

performance or achievements expressed or implied by such forward-looking statements,

including future changes or developments in the Company‘s business, its competitive

environment and political, economic, legal and social conditions. Further, past performance is

not necessarily indicative of future results. Given these risks, uncertainties and other factors,

viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking

statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific

objectives, financial situations or informational needs of any particular person. This

presentation does not constitute an offer or invitation to purchase or subscribe for any

securities in any jurisdiction, including the United States. No part of it should form the basis

of or be relied upon in connection with any investment decision or any contract or

commitment to purchase or subscribe for any securities. None of our securities may be

offered or sold in the United States, without registration under the U.S. Securities Act of

1933, as amended, or pursuant to an exemption from registration therefrom.

This presentation is confidential and may not be copied or disseminated, in whole or in part,

and in any manner.


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PRODUCTION CAPACITY

In the current economic and political scenario, setting up a new Greenfield project has

become challenging in view of the following:

•

Long arduous process of environmental approvals

• Land acquisition

• Complexity of mineral composition in new areas

• Supporting infrastructure of rail connect and water availability

• Greenfield project cost in current context is $135-$150/ton, depending on the

site location

SEGMENT

J.K. Super Cement is one of the premium grey cement brands in the Country, available as

application friendly Portland Pozzolana Cement (PPC). The product complies with quality

standards specified by the Bureau of Indian Standards (BIS) and is much in demand, by both,

the retail and the institutional segment.

SWOT ANALYSIS

WMI‘s J.K. Cement Ltd. contains a company overview, key facts, locations and subsidiaries,

News and events as well as a swot analysis of company.

This SWOT Analysis company profile is a crucial resource for industry executives and

anyone looking to quickly understand the key information concerning J.K. Cement Ltd.‘s business. WMI‘s ―J.K. Cement Ltd. SWOT Analysis & Company Profile‖ reports utilize a

wide range of primary and secondary sources, which are analyzed and presented in a

consistent and easily accessible format. WMI strictly follows a standardized research

methodology to ensure high levels of data quality and these characteristics guarantee a unique

report.

Examines and identifies key information and issues about (J.K. Cement Ltd.) for business

intelligence requirements.


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Studies and presents J.K. Cement Ltd.‘s strengths, weaknesses, opportunities (growth

potential) and threats (competition). Strategic and operational business information is

Objectively reported.

The profile contains business operations, the company history, major products and services,

prospects, key competitors, structure and key employees, locations and subsidiaries.

Quickly enhance your understanding of the company.

Obtain details and analysis of the market and competitors as well as internal and external

factors which could impact the industry.

Increase business/sales activities by understanding your competitors‘ businesses better.


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2.2 JK LAKSHMI CEMENT LTD

INTRODUCTION

Chronicle of the company thus began in the state of Rajasthan during the year 1938. One of

the established names in the cement industry, JK Lakshmi Cement (JKLC) Ltd has state-of-

the-art plant at Jaykaypuram, district of Sirohi, Rajasthan having an annual capacity of 3.65

million tonnes. With the use of the latest technology from M/s Blue Circle Industries and

modern equipment‘s from M/s Fuller International of USA, the company going from strength

to strength and produce JK Lakshmi Cement, JK Lakshmi plats and JK Lakshmi Power Mix.

It is also the first cement producer of Northern India to be awarded an ISO 9002 certificate

and be accredited by NABL (Department of Science & Technology, Government of India)for its Lab Quality Management systems.

HISTORY

There is hardly any other product that has so greatly contributed to the growth of modern

human civilization as Cement. The massive urban infrastructure that we see today across the

world would have been unthinkable without cement. Cement is the root substance that has

given the essential element of strength and durability to our houses, schools, offices and other

buildings so that we can occupy them with peace of mind.

The word Cement literally means a substance that can bind material together and can acquire

strength on hardening. The cement as we know today is a specialised building material which

is a result of various innovations over the past and is made in sophisticated manufacturing

facilities.

The oldest use of cement dates back to the thousands of years old Egyptian civilisation. The

Egyptians used natural cement made by combining limestone and gypsum for the

construction of their massive and highly impressive pyramids. The fact that the Egyptian

Pyramids have proudly stood the test of time over such a long period of human history is a

testimony to the phenomenal strength of cement. However it must be stated that the ancient

Egyptian cement was very different from the cement in use today.

Later in the Roman era, the concept of cement advanced further. Romans used a combination

of slaked lime with Pozzolana, a volcanic ash from Mount Vesuvius. The Romans made


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many impressive structures using this cement. The Basilica of Constantine is one popular

example of Roman construction in which they used such cement mortar.

In eighteenth century England, John Smeaton, a British engineer, was assigned the task of re-

constructing the Eddystone Lighthouse, a structure that had witnessed repeated structural

failure. In 1756, Smeaton conducted a number of experiments that led to the discovery that

cement made from limestone containing a considerable proportion of clay would harden

under water. Based on this discovery, Smeaton rebuilt this lighthouse in 1759 and this time, it

stood strong for 126 years.

Subsequently, until the early part of the nineteenth century, large quantities of natural cement

was used, that was made with a combination of naturally occurring lime and clay.

In 1824, Joseph Aspdin, a British mason obtained a patent on his hydraulic cement formula

that closely resembled the modern cement as we know today. He called this cement Portland

Cement, and it was made through the proportionate mixing, burning and the subsequent

grinding of a combination of clay and limestone. Cement went through many more

improvements and developments in the nineteenth and twentieth centuries. The industrial

revolution and the subsequent development of the rotary kiln paved the way for huge and

sophisticated cement manufacturing plants. These plants possess the capability of a

homogenous mixing and intense heating of the raw material thus vastly improving the quality

of the cement produced. The sophisticated quality-testing equipment employed by modern

cement plants further helps in ensuring the quality of the cement produced.

TYPES OF PRODUCT

Upholding the tradition of JK Organisation for maintaining the highest standards in quality,

JK Lakshmi Cement today is one of the most preferred brands in its marketing area with a

network of about 2200 dealers spread in the states of Rajasthan, Gujarat, Delhi, Haryana,

U.P., Punjab, J&K, MP and Mumbai. Our endeavour is always to give our best and maintain

the highest standards of customer satisfaction. No wonder the discernible buyers prefer this

cement over other brands owing to its consistency, higher level of quality and impeccable

customer service.


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Also not surprising is the fact that the decision makers of the nation's important projects like

IGNP, SardarSarvorar Dam and major corporations like L&T, Reliance, Essar and Airport

Authority of India chose JK Lakshmi Cement over other brands.

JK Lakshmi Cement Ltd is also the first Cement Manufacturer in North India to use coloured

bags to help the customer in segregating different products. It also has a regular contact

program with masons, dealers and architects to keep in tune with their needs and

requirements. One of the many innovative initiatives the company took was to have a mason's

club that now has over 45,000 members. Under this program the masons are given an

insurance cover against accidents absolutely free of cost, besides educating them on the latest

in construction activities.

The high standard of advertising has been another feather in the cap of JK Lakshmi Cement

Ltd. This has not only helped it to reach out to its customers but also in connecting with them

at an emotional level. No wonder then that "Mazbooti Guaranteed" is now a term that is

synonymous with JK Lakshmi Cement.

PRODUCTION CAPACITY

JK Lakshmi Cement Limited's manufacturing facility at Sirohi, Rajasthan is equipped with

state-of-the-art equipment acquired from leading vendors from across the world. Rated

among the topmost Cement Plants in India, our manufacturing facility is well positioned to

deliver an extremely superior quality of product that adheres to the highest quality standards.

The JK Lakshmi cement manufacturing facility is spread across an area of

8 square kilometres among the lush green Arravali ranges at Jaykaypuram in Sirohi district of

Rajasthan. The plant uses ultra modern equipment acquired from M/s Fuller International of

USA and M/s Ventomatic of Italy.

The right combination of quality assurance, equipment and methodology form the base for

the Mazbootiadvantage offered by our Cement. With an annual production capacity of 3.5

million tonnes, our manufacturing plant has the following highlights:

JK Lakshmi's manufacturing facility in Sirohi, Rajasthan has been rated among the top

Greenest Cement Plants of India.

http://www.jklakshmi.com/jklakshmi_cement.htmlhttp://www.jklakshmi.com/news_awards.htmlhttp://www.jklakshmi.com/news_awards.htmlhttp://www.jklakshmi.com/jklakshmi_cement.html


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The variety of limestone used in the manufacturing of JK Lakshmi Cement is known to

be of a highly superior quality resulting in cement that is well recognised for strength and

durability.

JK Lakshmi's manufacturing plant uses ultra-modern technology and imported

machinery.

Use of high-end equipment such as the Gamma Metrics Machine and the X-ray Analyser

ensures that each product passing out of JK Lakshmi's manufacturing facility adheres to

global standards of quality and performance.

Electronic packing machines obtained from M/s Ventomatic of Italy ensure that the

customers obtain accurate quantities of JK Lakshmi's products.

The plant is fully computerised and centrally controlled by programmable logic controller

with colour VDU Control Stations

SEGMENT

JK Lakshmi Cement, a renowned and well-established name in the Indian cement industry,

now in its 31st year, has a formidable presence in North & Western India‘s cement markets.

Its current capacity stands at 5.3 million MT per annum. Modern and fully computerized

integrated plant at Jaykaypuram, in Sirohi district of Rajasthan. It also has two split location

grinding units – at Kalol, Gujarat, and at Jhamri ,Distt. Jhajjhar, Haryana.

Established a Waste Heat Recovery Power project to generate 12 MW of power from waste

heat gases, which does not use any fossil fuel, taking the company‘s total captive power

generation capacity to 66 MW

The operating parameters at par with international standards and trendsetter in various

initiatives, including usage of alternative fuels such as petcoke

Recognition for its outstanding efforts in various fields, by way of numerous awards such as

―India‘s Best Companies to Work for‖ Award, Gold Award - National Institute of Personal

Management, Star Brands 2011, Green Manufacturing Excellence Award by Frost &

Sullivan, Greentech Safety Gold Award by Greentech Foundation, Golden Peacock HR

Excellence Award, Safety Innovation Award, Leading Businesswoman of the Year Award,

Greentech HR Excellence Award by Greentech Foundation, Leading CEO of the Year


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Award, Best Professionally Managed Company Award and Golden Peacock Award for CSR

initiatives.

It forayed into the Ready Mix concrete business, an emerging segment in construction sector,

with the brand name ―JK Lakshmi Power Mix‖. It operates 11 RMC plants. It also markets

Plaster of Paris under the br and name ―JK Lakshmiplast‖ – a market leader in its product

category Work is on at the 2.7 million MT-Greenfield-site plant at Durg in Chattisgarh.

SWOT ANALYSIS

JK Lakshmi Cement Ltd. is engaged in manufacturing and distribution of construction

materials. It is engaged in the production of cement that include cement 53 blended, 53 grade

ordinary portland cement and 43 grade ordinary portland cement. The company caters its

product to civil and industrial works and operates in India. It is headquartered at New Delhi,

India.

This comprehensive SWOT profile of JK Lakshmi Cement Ltd. provides you an in-depth

strategic analysis of the company‘s businesses and operations. The profile has been compiled

by Global Data to bring to you a clear and

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