Cement Industry in India

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India, being the second largest cement producer in the world after China with a total capacity of
151.2 Million Tones (MT), has got a huge Cement Company. With the government of India
giving boost to various infrastructure projects, housing facilities and road networks, the cement
industry in India is currently growing at an enviable pace. More growth in the Indian cement
industry is expected in the coming years. It is also predicted that the cement production in India
would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12.
The cement industry in India is dominated by around 20 companies, which account for almost
70% of the total cement production in India. In the present year, the Indian cement companies
have produced 11 MT cement during April-September 2009. It took the total cement production
in FY09 to 231 MT.
Industry Background
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.
Cement Industry in India

Jobs in Cement Industry

L & T Cement Plants

ACC Ltd. Cement Plants

CCI Cement Plants

Export of Indian Cement

Types of Cement in India

Gujarat Ambuja Plants in India

Top 10 Companies

Top 10 Cement Companies

Mangalam Cement

J K Lakshmi Cement

J K Cement

Madras Cement

India Cements

Sanghi Industries

Dalmia Cement

ITD Cementation India

Dalmia Cement Bharat

Gujarat Ambuja Cements

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
upgradation 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 Despatches
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 despatch was 155 MT,
which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement despatch of
12.22 MT, which was almost 9% higher than the total cement despatch of 11.21 MT in the same
month in the previous year.
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

Major Players in Indian Cement Industry

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
across the nation.
Following are some of the major names in the Indian cement industry:
Company

Production

Installed Capacity

ACC

17,902

18,640

Gujarat Ambuja

15,094

14,860

Ultratech

13,707

17,000

Grasim

14,649

14,115

India Cements

8,434

8,810

JK Group

6,174

6,680

Jaypee Group

6,316

6,531

Century

6,636

6,300

Madras Cements

4,550

5,470

Birla Corp.

5,150

5,113

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.

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.

For more information contact : business@mapsofindia.com

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India steel industry

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India is the fifth largest producer of steel in the world. India Steel Industry has grown by leaps
and bounds, especially in recent times with Indian firms buying steel companies overseas. The
scope for steel industry is huge and industry estimates indicate that the industry will continue
will to grow reasonably in the coming years with huge demands for stainless steel in the
construction of new airports and metro rail projects. The government is planning a massive
enhancement of the steel production capacity of India with the modernization of the existing
steel plants.
Industry Statistics
Government targets to increase the production capacity from 56 million tones annually to 124
MT in the first phase which will come to an end by 2011 - 12. Currently with a production of 56
million tones India accounts for over 7% of the total steel produced globally, while it accounts to
about 5% of global steel consumption. The steel sector in India grew by 5.3% in May 2009.
Globally India is the only country to post a positive overall growth in the production of crude
steel at 1.01% for the period of January - March in 2009.
Export
About 50% of the steel produced in India is exported. India's export of steel during April December 2008 was 64.4 MT as against 9.7 MT in December 2007. In February 2009, steel
export increased by 17% to 12.6 MT from 10.8 MT in the same month last year. More than 50%
of steel from India is exported to China. The Government's decision to reduce export duty on
iron ore lumps from 15% to 5% has given a major boost to the export of steel.
Hurdles
Power shortage hampers the production of steel
Use of outdated process for production
Lags behind in the production of stainless steel
Deficiency of raw materials required by the industry
Labor productivity is low. It is 144 tons per worker per year against 600 tons in Western Europe
as per estimates.

Inadequate shipment capacity and transport structure

Strengths
There are many strong points of the industry that makes it one of the leading names in the global
steel industry. The rate of labor wage in India is among one of the lowest in the world thereby
making large scale production feasible. The boom witnessed in the automobile industry has
ensured that the demand for steel is increasing gradually and will continue to do so in the near
future. There is huge manpower in India which is another reason why steel production in India is
high and the industry is doing pretty well both nationally and internationally.
Investments
Numerous steel companies some major projects in the pipeline to invest in India Steel industry.
Steel companies have earmarked more than 100 million USD for the setting up of sponge iron
units in Koppal and Bellary in Karnataka. As per Investment Commission of India more than 30
billion USD are in the pipeline for investment over the next five years.
Iron

Introduction

Top Companies

It is common today to talk about "the iron and steel industry" as if it were a single entity, but
historically they were separate products. The steel industry is often considered to be an indicator
of economic progress, because of the critical role played by steel in infrastructural and overall
economic development, with the main demand creators being the automobile, construction,
infrastructure and oil & gas Industries. Due to its increasing global prominence, in 2008, steel
started to be traded as a commodity on the London Metal Exchange.

Modern steels are made with varying combinations of alloy metals to fulfil many purposes.
Carbon steel, composed simply of iron and carbon, accounts for 90% of steel production whereas
other alloys include elements such as manganese, chromium and nickel. Though not an alloy,
galvanized steel is a commonly used variety of steel which has been hot-dipped or electroplated
in zinc for protection against rust.

As a result of the growing demand for steel for infrastructural works and real estate projects in
developing countries, the steel industry is becoming more and more competitive with every
passing day. Till the late eighties, the steel market used to be dominated by OECD (Organization
for Economic Cooperation and Development) countries. But with the fast emergence of

developing countries like China, India and South Korea in this sector, there has been a dramatic
shift in market share.

Performance
The economic boom in China and India has led to massive increases in the demand for steel over
the past decade, contributing significantly to the 6% p.a. growth in world steel demand from
2000-2005. In addition, several Indian and Chinese steel firms have risen to prominence like
Mittal Steel (which acquired the World's largest steel company, Arcelor Steel to become the
undisputed market leader), Tata Steel (TISCO) (which bought the World's fifth largest steel
company, Corus Group in 2007), Shanghai Baosteel Group Corporation and Shagang Group.

To meet the accelerated demand, the industry, which is at present working near its operative
capacity, is looking for new innovations in product maximization and cost cutting technologies
such as thin-slab casting, steel manufacturing via electric furnace and vacuum degassing, etc.

At the end of 2008, the steel industry faced a sharp downturn. This was due to the dual whammy
of poor demand and shrinking liquidity in the global market place. Developed countries,
especially, saw construction and automotive industries all but come to a halt. Demand from
developing countries such as China, too, tapered off somewhat.

India has been a major global player in the iron and steel industry thanks in part to the strong
governmental support. Liberalization in the early nineties, which allowed massive foreign
investment and pricing autonomy, along with policies of unrestricted external trade, low import
duties, and an easy tax structure, have further stimulated growth of the industry. Consequently,
India has more than tripled production of carbon steel and pig iron from 1992-2008, from 14mn
tonnes and 2 mn tonnes to 47 mn tones and 5 mn tonnes respectively.

Today, India is the World's 7th largest crude steel producing country. The premier steel plants
operating in India are Bokaro Steel Plant at Jharkhand, Rourkela Steel Plant at Orissa, Durgapur
Steel Plant at West Bengal and Bhilai Steel Plant at Chattisgarh.

Growth Potential

The steel industry employs people with many different skills and diverse knowledge, who have
the ability to work in multi-disciplinary teams. These include metallurgy, materials science,
physics, chemistry, engineering as well as mathematics, IT, languages, business, accountancy and
many other subjects.

Most steel companies can offer challenging and rewarding careers, often in an international
context with opportunities for employees to quickly gain experience, responsibility and
leadership. Training and recruitment opportunities are available across various functions,
including manufacturing & production, engineering & process development, technology, R&D,
product development and logistics, among others.

Future Prospects
Candidates interested in this industry can be reassured of strong demand and lucrative
opportunities over the coming years, as local players expand their operations in both the
domestic and foreign markets. Players such as Jindal Steel and Tata Steel have progressively
grown in size and stature and continue to recruit an increasing number of top calibre candidates
across all areas of their business.
Steel industry reforms - particularly in 1991 and 1992 - have led to strong
and sustainable growth in Indias steel industry.

Since its independence, India has experienced steady growth in the steel industry, thanks in part
to the successive governments that have supported the industry and pushed for its robust
development.
Further illustrating this plan is the fact that a number of steel plants were established in India,
with technological assistance and investments by foreign countries.
In 1991, a substantial number of economic reforms were introduced by the Indian government.
These reforms boosted the development process of a number of industries - the steel industry in
India in particular - which has subsequently developed quite rapidly.
The 1991 reforms allowed for no licenses to be required for capacity creation, except for some
locations. Also, once Indias steel industry was moved from the listing of the industries that were
reserved exclusively for the public sector, huge foreign investments were made in this industry.
Yet another reform for Indias steel industry came in 1992, when every type of control over the
pricing and distribution system was removed, making the modern Indian Steel Industry
extremely efficient, as well as competitive.

Additionally, a number of other government measures have stimulated the growth of the steel
industry, coming in the form of an unrestricted external trade, low import duties, and an easy tax
structure.
India continually posts phenomenal growth records in steel production. In 1992, India produced
14.33 million tones of finished carbon steels and 1.59 million tones of pig iron. Furthermore, the
steel production capacity of the country has increased rapidly since 1991 - in 2008, India
produced nearly 46.575 million tones of finished steels and 4.393 million tones of pig iron.
Both primary and secondary producers contributed their share to this phenomenal development,
while these increases have pushed up the demand for finished steel at a very stable rate.
In 1992, the total consumption of finished steel was 14.84 million tones. In 2008, the total
amount of domestic steel consumption was 43.925 million tones. With the increased demand in
the national market, a huge part of the international market is also served by this industry. Today,
India is in seventh position among all the crude steel producing countries.