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C EMENT INDUSTRY IN INDIA Presented by. Saurabh Singh MBA (SEM I)
Transcript
Page 1: ppt on cement industry in india

CEMENT INDUSTRY IN INDIA

Presented by.

Saurabh Singh

MBA (SEM I)

Page 2: ppt on cement industry in india

CONTENTS

Introduction.

Evolution of Indian cement industry.

Bodies promoting industrial development.

Types and manufacturing.

Leading cement manufacturing industries in India.

Economic status of cement industry.

Issues concerning the cement industry.

Effect of cement manufacturing on environment.

PEST analysis.

PORTAL’S five foces.

SWOT analysis.

Objectives of study.

Research methodology.

References.

Page 3: ppt on cement industry in india

INTRODUCTION

Cement is the glue that holds the concrete together,

and is therefore critical for meeting society's needs

of housing and basic infrastructure such as bridges,

roads, water treatment facilities, schools and

hospitals.

India is the world's second largest producer of

cement after China with industry capacity of over

200 million tonnes (MT).

Page 4: ppt on cement industry in india

EVOLUTION OF INDIAN CEMENT

INDUSTRY

• A Kolkata based company started manufacturing cement in 1889.

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

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

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

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

• A great increase in demand of cement, has resulted India to become 2nd largest cement producer in the world after China.

Page 5: ppt on cement industry in india

BODIES PROMOTING INDUSTRIAL

DEVELOPMENT

National Council for Cement and Building

Materials.

Indian Concrete Institute.

Page 6: ppt on cement industry in india

TYPES OF CEMENT

Ordinary Portland Cement (OPC).

Portland Pozzolana Cement (PPC).

Portland Blast Furnace Slag Cement (PBFS).

Oil Well Cement.

Rapid Hardening.

Sulphate Resisting Portland Cement.

White Cement etc.

Page 7: ppt on cement industry in india

PERCENTAGE CONTENTS OF CEMENTS

1.Ordinarily Portland Cement

Clinker - 90.50%

Gypsum - 4.00%

Fly ash - 5.50%

2.Portland Pozzolana Cement

Clinker - 66%

Gypsum- 4%

Fly ash - 30%

3.Portland Blast Furnace Slug Cement

Clinker - 70%

Gypsum- 6%

Slag - 24%

Page 8: ppt on cement industry in india

CEMENT MANUFACTURING

Cement is made out of limestone, shale, clay mined out of quarry close to the plant. The raw material is crushed, and then heated at temperature in excess of 1000 degree Celsius in rotating kiln to become clinker. Clinker is then mixed with gypsum and ground to a fine powder to produce final grade of cement.

The technology is a continuous process and is highly energy intensive.

At present 93% of cement production in India is based on modern and environment-friendly dry process technology and only 7% of the capacity is based on old wet and semi-dry process technology.

The cost of Cement is 29% energy; 27% raw materials; 32% labour and 12% depreciation

Page 9: ppt on cement industry in india

TYPES MANUFACTURING PROCESS

There are three types of manufacturing process is

used to produce cement:-

Dry process (96.3% used).

Wet process (3.5% used).

Semi dry process (0.2% used).

Page 10: ppt on cement industry in india

FLOW CHART OF CEMENT MANUFACTURING

Page 11: ppt on cement industry in india
Page 12: ppt on cement industry in india
Page 13: ppt on cement industry in india
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MAJOR PLAYERS IN THE INDIAN

CEMENT INDUSTRY

Company Production capacity

(In million tonnes)

plants

ACC 30.04 14

Ambuja 27.00 13

Ultratech 48.75 22

Lafarge India Pvt. Ltd. 7.75 04

India Cements 15.33 09

JK Group 07.47 04

Jaypee Group 24.50 14

Shree Cement Ltd. 13.50 06

Madras Cements 14.88 08

Birla Corp. 06.46 07

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

Directory 2012 : 3rd Edition

Page 15: ppt on cement industry in india

KEY FEATURES OF CEMENT INDUSTRY

India's cement production has increased at a

compound annual growth rate (CAGR) of 9.7

per cent to reach 272 million tonnes (MT) during

FY 06-13

The government plans to spend US$ 1 trillion on

infrastructure in the 12th five year plan period

(2012-17).

Concrete is the second most consumed material after

water, with nearly three tones used annually for each

person on the planet.https://www.equitymaster.com

Page 16: ppt on cement industry in india

ECONOMIC STATUS OF THE CEMENT

INDUSTRY

Growth Rate

Investments

Exports

FDI and GDP

Page 17: ppt on cement industry in india

GROWTH RATE

• India is the world’s second largest producer of

cement with total capacity of 370 million tonnes as

of financial year 2012-13.and expected to reach

550 million tonnes in 2020.

• Indian Cement Industry comprises of 185 large and

more than 365 mini cement plants.

https://www.equitymaster.com

Page 18: ppt on cement industry in india

PRODUCTION AND PRODUCTION CAPACITY OF

CEMENT IN INDIA

Page 19: ppt on cement industry in india

INVESTMENTS

• Cement and gypsum products attracted FDI worth

US$ 2.23 billion between April 2000 and June 2014,

according to the Department of Industrial Policy and

Promotion.

• Jaypee Associates plans to invest US$ 640 million

to increase its cement capacity.

https://www.equitymaster.com

Page 20: ppt on cement industry in india

EXPORTS

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

touched the 2.16 million tonnes mark. However

during 2008-09, the cement export from India stood

at 1.46 million tonnes.

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

segment of the industry is expected to grow again

on account of various infrastructure projects that

are being taken up all over the world. India has an

immense potential to tap markets of Middle East

and South East Asia

https://www.equitymaster.com

Page 21: ppt on cement industry in india

FDI AND CONTRIBUTION TO THE GDP

• The industry occupies an important place in the

national economy because of its strong linkages to

other sectors such as construction, transportation ,

coal and power.

• 100% FDI is permitted in the cement industry.

• It contributes approximately 1.3% of GDP and the

industry is employing over 0.14 million people in

2013.

https://www.equitymaster.com

Page 22: ppt on cement industry in india

ISSUES CONCERNING THE CEMENT

INDUSTRY

•High Transportation Cost is affecting the competitiveness

of the cement industry Road is the preferred mode for

transportation or distances less than 250km. However,

industry is heavily dependant on roads for longer distances

too as the railway infrastructure is not adequate.

•Cement industry is highly capital intensive industry and

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

government.

•Coal availability and quality is also affecting the

production.

Page 23: ppt on cement industry in india

OVERVIEW OF INDIAN CEMENT

INDUSTRIES

Cement plants: 185

Installed capacity: 339.5

mtpa

Cement production: 168.3

mtpa*

Cement plants: 365

Installed capacity: 11.1

mtpa

Cement production: 6.0

mtpa

Large Cement Plants Mini And White Cement Plants

Page 24: ppt on cement industry in india

MAJOR CEMENT DEMAND DRIVERS

64%

17%

13%

6%

housing sector

infrastructure

commercial&institutional

industrial

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

Page 25: ppt on cement industry in india

INDIA IS THE 2ND LARGEST CEMENT PRODUCER AS WELL AS

CONSUMER IN THE WORLD LED BY THE ENORMOUS GROWTH IN THE

INFRASTRUCTURE AND CONSTRUCTION SECTOR FOR THE LAST TWO

DECADES

Top Cement Consumers in

2013 (million tonnes)

Top Cement Producer in 2013

(million tonnes)

2048

72 650

500

1000

1500

2000

2500

2013

2013

300

2058

373

66 640

500

1000

1500

2000

2500

2013

2013

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

Page 26: ppt on cement industry in india

EFFECT OF CEMENT MANUFACTURING ON

ENVIRONMENT

Carbon di oxide emmision:-

limestone scrubber:

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

lime scrubber:

Ca(OH)2 + SO3 + H2O —> CaSO4 + 2H2O

CO2 Emissions from Calcination:

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

Page 27: ppt on cement industry in india

NITROGEN OXIDE EMISSIONS FROM CLINKER

MANUFACTURING:-

High-temperature combustion of fuels in the kiln line releases

nitrogen oxides (NOx), with the nitrogen being mainly

derived from the atmosphere but also to some degree from the

fuels themselves; a minor contribution also comes from some

types of raw materials

O + N2 ──> NO + N and

O2 + N ──> NO + O (unstable)

Page 28: ppt on cement industry in india

PEST ANALYSIS

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

• Govt is one of the biggest consumers of the cement

POLITICAL

• Future of cement industry is very strong

• A lot government infrastructure and housing projects are under construction

ECONOMIC

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

• Industry will create 25 lakhs jobs in coming yearsSOCIAL

• Govt is acquiring new technology from Japan

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

Page 29: ppt on cement industry in india

PORTER’S FIVE FORCES FRAMEWORK

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SWOT ANALYSIS

Strengths:

Second largest in the world in terms of capacity

Low cost of production: due to the easy availability of

raw materials and cheap labour

Growth at approx. CAGR of 9% in last 5 years

Growing Domestic cement consumption at approx.

CAGR of 8% in last 3 years

Highly Capital Incentive so difficult for small entrant

Not much restriction by govt.

Page 31: ppt on cement industry in india

WEAKNESS:-

High Oil Prices, Cost of Power increase production cost.

Supply exceeds Production lead to competition in price.

Low Quality as compared to international standard but

improving.

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OPPORTUNITIES:

High Mortgage Penetration -Low Interest Rates

Easy loan availability for housing finance

Increased investments in Infrastructure

Increased govt. outlay on BHARATNIRMAN,

GOLDEN QUADRILATERAL, and BRTS etc.

Page 33: ppt on cement industry in india

THREATS:-

Further Hike in Oil Prices.

Use of plastic engineering in construction.

Subprime market loss may affect.

Page 34: ppt on cement industry in india

OBJECTIVES OF STUDY

To study the process of manufacturing and effect of

introducing of new technology.

Page 35: ppt on cement industry in india

REFERENCES

Building material and construction- B.C.PUNAMIA

Websites.

www.google.com .

http://www.ibef.org.

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

https://www.equitymaster.com

Page 36: ppt on cement industry in india

THANK YOU….


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