ppt on cement industry in india

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1. Cement industry in india Presented by. Saurabh Singh MBA (SEM I)

2. 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. I ssues concerning the cement industry. Effect of cement manufacturing on environment. PEST analysis. PORTAL’S five foces . SWOT analysis. Objectives of study. Research methodology. References.

3. 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).

4. 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 2 nd largest cement producer in the world after China .

5. Bodies promoting industrial development National Council for Cement and Building Materials. Indian Concrete Institute.

6. 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.

7. 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%

8. 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

9. 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).

10. Flow chart of cement manufacturing

11. 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

12. 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

13. ECONOMIC STATUS OF THE CEMENT INDUSTRY Growth Rate Investments Exports FDI and GDP

14. 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

15. Production and production capacity of cement in india

16. 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

17. 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

18. 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

19. 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.

20. 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

21. Major cement demand drivers http://www.ibef.org/industry/cement-india.aspx

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

23. Effect of cement manufacturing on environment Carbon di oxide emmision :- limestone scrubber: CaCO 3 + SO 3 +2H 2 O —> CaSO 4 + 2H 2 O + CO 2 ↑ lime scrubber: Ca(OH) 2 + SO 3 + H 2 O —> CaSO 4 + 2H 2 O CO2 Emissions from Calcination : CaCO 3 + heat (to about 9508 ᵒ C)──> CaO + CO 2

24. 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)

25. PEST ANALYSIS

26. PORTER’S FIVE FORCES FRAMEWORK

27. 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.

28. 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.

29. 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.

30. Threats:- Further Hike in Oil Prices. Use of plastic engineering in construction. Subprime market loss may affect.

31. Objectives of study To study the process of manufacturing and effect of introducing of new technology.

32. 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

33. Thank you….