Industry Analysis ProfileCement Industry

HISTORY Hetauda Cement Industry 2033 BS

Himal Cement Industry 2039 BS

Bishokarma, Jagadamba 1st private manufacturers

80% import before 2000 AD Bishokarma 2052

Himal 2039

Hetauda 2033

NATURE Manufacturing

National Priority Industry

Limestone extracted for ore

Cement categorized as OPC, PPC• Lime Stone

Input

• Clinker• Slag,

GypsumProcess

• CementOutput

GEOGRAPHIC COVERAGE Demand in all regions

Multi spread distributors

Key to infrastructure development

NUMBER OF FIRMS 42 companies manufacture cement

12 clinker based

Around 4000 employed directly/indirectly

PRODUCT TYPE Single utility product

Raw material limestone

Used for construction, building material

05/02/2023(c) – W

eraz (MBA)

Cement Sells

60,000 Mt Ton Plant23,000 MTD

1 Crore 20 Lakh Bags/Year1000+ Channels

PERFORMANCE ANALYSIS 8-10 % annual growth rate (world 3.7%)

4 million MT. Ton annual demand

3.5 million MT. Ton domestic production

1.2 billion US$ foreign direct investment

8-10% growth

3.5 MmT production

5.5 Mmt capacity

(c) – Weraz (M

BA)

05/02/2023(c) – W

eraz (MBA)

1998 2000 2002 2004 2006 2008 2010 2012 2014 20160

0.5

1

1.5

2

2.5

3

3.5

4

Cement production since 2000 (in million metric ton)

FACTORS AFFECTING GROWTH

Infrastructure development

Development of real estate sector

Post Earthquake reconstruction

Labor strike

Power Shortage

05/02/2023(c) – Weraz (MBA)

REGULATION Department of Industry

District Administration Office

ISO & NS regulating bodies

NCMA

SUCCESSFUL ?? Moving towards self sufficiency

80% domestic market share

Corporate sector & foreign investment

Essential for post quake reconstruction

MARKETING MIX Product Offering variety

Price Institutional discount, bulk discount

Promotion Discount, Advertisement. Sponsorship, Allowance, Fairs & Exhibitions

Place Multi spread distributors, retailers

SEASONALITY Business all year round

Slight fall in rainy season

SENSITIVE TO ECONOMIC INDICATORS

Highly responsive to infrastructure development

More likely reactive to real estate growth

Conducive to purchasing power

TARGET CUSTOMERS• Mostly Institutional (65%)

• Individuals (35%)

• 80% demand met by domestic production

COMPETITORS Foreign companies

Intra industry manufacturers

SWOT ANALYSIS Abundant raw materials Favorable government policy

Import of cement clinkers Lower capacity utilization

Self sufficiency Foreign direct investment Post quake reconstruction

Power shortage Labor strike

Strength

Weakness

Opportunity

Threat

Abundant raw materials Favorable government policy

Import of cement clinkers Lower capacity utilization

Self sufficiency Foreign direct investment Post quake reconstruction

Power shortage Labor strike

Strength

05/02/2023(c) – W

eraz (MBA)

CONCLUSION Prosperous outlook of industry

Healthy growth rate

Government speed up post quake activities

SPECIAL THANKS

Jagadish Sapkota – Jagadamba cement

Shivani Neupane _ Ambe Cement

Bishma Bajagai – Hetauda Cement

Tara Nath Goyal – Shivam Cement

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