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). India is the world’s second-largest cement producer, accounting for more than 7% of worldwide installed capacity.
The private sector accounts for 98 percent of overall capacity, with the public sector accounting for the remainder The top 20 cement businesses account for almost 70% of total cement cultivation in India India has a large amount and quality of limestone reserves all over the country, the cement sector has enormous expansion potential.
Manufacturing Process 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
Importance of Cement Industry
Evolution of Indian cement Industry
Geographical segments
Major player in Indian cement industry Acc limited.(1936),Mumbai. Ultra tech cement,(1987),Mumbai. Ambuja cement,(1983),Mumbai. Jaypee cement(2001),noida. India cement,(1946),Chennai. Ramco cement.(1957),Chennai. JK cement,(1975),new Delhi. Prism cement,(1997),Mumbai. Rain cement(1986)Hyderabad Shree cement(1970).Kolkata.
Factors driving Growth
Major Demand Drivers
FDI and GDP Contribution 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.
Issues affecting 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
Other Constraints
Conclusion The cement business is intertwined with a country’s economy both forward and backward. Given the massive architectural necessities of a developing and industrializing country, as well as its achievements in terms of direct and indirect jobs, the cement industry’s value offer is even greater for a growing and transforming economy like India.