Sunteți pe pagina 1din 64

Cement This document has been prepared by Ruchira Mehta and Ajay D souza (Head of Research).

For any queries please get in touch with our c lient servicing des . (clientservicing@crisil.com. Ph -022-66913561) Annual Revi ewJuly 2008 Contents Part A: Margins to be under pressure Executive summary A-1 Demand growth to sustain, albeit slower than the last 5 years A-3 Excess capa city will lead to a fall in prices A-13 Cement companies will lac pricing flex ibility A-23 Part B: State of the industry Industry characteristics B-1 Pro ducts and technology B-13 Cement manufacturing process B-21 Region-wise scenar io B-29 Player profile B-37 Part C: Industry statistics Demand supply C-1 State profile C-29 Raw material C-45 Tariffs C-57 Mar et share and financia ls C-59 Exports C-67 Cost C-71 Summary CRISIL Research expects cement consum ption to increase at a CAGR of 8 per cent over the next 5 years. However, cement capacity additions of 115 million tonnes (translates of around 60 per cent of e xisting capacity) will lower operating rates. Adding to the woes of cement compa nies, large bunching up of capacities is expected in 2009-10 and 2010-11. We the refore expect cement prices to fall by as much as Rs 15-20 per bag over the next 2 years (2008-09 and 2009-10) as operating rates dip. Industry Information S ervice Industry Information Service presents a detailed and comprehensive analy sis of the current trends and the long-term performance outloo on 47 industries in India. It covers the evolution of an industry, the regulatory environment, c ost structures and the extent of competition. It also provides the ey success f actors and an analysis of the global trends along with statistical information o n capacities, production, imports-exports, domestic and international prices, an d consumption patterns and player profiles. The parameters are updated on an ann ual and monthly basis. About CRISIL Limited CRISIL is India s leading Ratings, Research, Ris and Policy Advisory Company. CRISIL offers domestic and international customers a unique combination of local insights and global perspectives, delivering independent information, opinions and solutions that help them ma e better informed business and investment decisions, improve t he efficiency of mar ets and mar et participants, and help shape infrastructure policy and projects. Its integrated range of capabilities includes credit rating s and ris assessment; research on India s economy, industries and companies; global equity research; fund services; ris management and infrastructure advisory ser vices. About CRISIL Research CRISIL Research is India s largest independent, integ rated research house. We leverage our unique, integrated research platform and c apabilities spanning the entire economy-industry-company spectrum to deliver sup erior perspectives and insights to over 600 domestic and global clients, through a range of subscription products and customised solutions. Disclaimer CRISIL Research, a Division of CRISIL Limited has ta en due care and caution in prepari ng this Report. Information has been obtained by CRISIL from sources which it co nsiders reliable. However, CRISIL does not guarantee the accuracy, adequacy or c ompleteness of any information and is not responsible for any errors or omission s or for the results obtained from the use of such information. CRISIL is not li able for investment decisions which may be based on the views expressed in this Report. CRISIL especially states that it has no financial liability whatsoever t o the subscribers/ users/ transmitters/ distributors of this Report. CRISIL Rese arch operates independently of, and does not have access to information obtained by CRISILs Ratings Division, which may, in its regular operations, obtain infor mation of a confidential nature which is not available to CRISIL Research. No pa rt of this Report may be published/reproduced in any form without CRISILs prior written approval. CRISIL RESEARCH CEMENT ANNUAL REVIEW A -i Sections Executive summary A-1 1.0 Demand growth to sustain, albeit slower than the last 5 years A-3 - Cement consumption to register a CAGR of 8 pe r cent over the next 5 years A-3 - Housing sector to be the ey demand drive r A-4 - Infrastructure investments to continue to boost cement consumption A-5 - Commercial construction to continue, albeit at a slower pace A-6 - Indust rial projects A-6 - Eastern region dependent on industrial projects A-7 - So uthern region - growth momentum to continue A-8 - Net outbound movement to dec

line marginally A-9 - Western region A-9 - Central region - cement consumpti on to be sustained A-10 2.0 Excess capacity will lead to a fall in prices A-13 - Capacities in excess of 100 million tonnes to be added over the next 5 years A-13 - AV Birla Group betting on northern mar ets A-15 - Blending to increa se marginally A-21 - Blending calculation A-22 3.0 Cement companies will lac pricing flexibility A-23 Box 1.0 Demand growth to sustain, albeit slower than t he last 5 years 01 Demand forecasting methodology A-3 Charts 1.0 Demand growth to sustain, albeit slower than the last 5 years 01 Region-wise ey indicators A -4 02 Net outbound movement (domestic) in the northern region in 2007-08 A-7 03 Net outbound movement (domestic) in southern region in 2007-08 A-9 Continued Opinion July 2008 A-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW continued Figures Execut ive summary 01 Demand-supply scenario in cement industry A-1 02 Operating Margin s on downward trend A-2 1.0 Demand growth to sustain, albeit slower than the la st 5 years 01 Growth in cement consumption A-3 02 Comparison of infrastructure i nvestments - 2001-02 to 2006-07 and 2006-07 to 2011-12 A-5 03 Cement consumpt ion and production North A-6 04 Cement consumption and production East A-8 05 Cement consumption and production South A-8 06 Cement consumption and productio n West A-10 07 Cement consumption and production Central A-11 2.0 Excess cap acity will lead to a fall in prices 01 Incremental cement capacity and consumpti on A-13 02 Net cement capacity additions and clin er operating rates A-14 03 Cli n er operating rates and cement prices A-14 04 Clin er utilisation rates under d ifferent scenarios -all-India A-15 05 Company-wise capacity share in northern re gion (2007-08) A-16 06 Company-wise capacity share in northern region (2012-13) A-16 07 North Clin er operating rates and cement prices A-16 08 North Net ceme nt capacity additions A-16 09 East Clin er operating rates and cement prices A17 10 East Net cement capacity additions A-17 11 Company-wise capacity share in eastern region (2007-08) A-17 12 Company-wise capacity share in eastern region (2012-13) A-17 13 South Clin er operating rates and cement prices A-18 14 South Net cement capacity additions A-18 15 Company-wise capacity share in southern region (2007-08) A-19 16 Company-wise capacity share in southern region (2012-13 ) A-19 17 West Clin er oprating rates and cement prices A-19 18 West Net cemen t capacity additions A-19 19 Company-wise capacity share in western region (2007 -08) A-20 20 Company-wise capacity share in western region (2012-13) A-20 21 Cen tral Clin er operating rates and cement prices A-20 22 Central Net cement capa city additions A-20 23 Company-wise capacity share in central region (2007-08) A -21 24 Company-wise capacity share in central region (2012-13) A-21 25 Product m ix A-21 continued ENT ANNUAL REVIEW A-iii continued Figures 3.0 Cement compa nies will lac pricing flexibility 01 Cement capacity and consumption A-23 02 Po wer cost v/s operating expenses A-24 03 Non-co ing coal price movement A-24 04 R oad freight v/s diesel prices A-24 Tables 1.0 Demand growth to sustain, albeit slower than the last 5 years 01 Housing demand forecast A-4 2.0 Excess capaci ty will lead to a fall in prices 01 Blending calculation A-22 3.0 Cement compan ies will lac pricing flexibility 01 Operating margins A-25 CRISIL RESEARCH CEMENT ANNUAL REVIEW A-1 C ement consumption to increase at a CAGR of 8 per cent over the next 5 years CRIS IL Research expects domestic cement consumption to register a CAGR of 8.0 per ce nt in the next 5 years. This is marginally lower than the 8.2 per cent CAGR reco rded in the preceding 5 years. Growth in the northern and southern regions is ex pected to be higher than the all-India average. However, cement consumption in t he western region, which rose by 8.1 per cent (CAGR) over the last 5 years, is e

CRISIL RESEARCH CEM

xpected to be sluggish in the subsequent corresponding period on the bac of the expected slowdown in residential and commercial construction over the next 2-3 years. Capacities in excess of 100 million tonnes to be added over the next 5 y ears CRISIL Research expects 115 million tonnes (additional clin er capacity of 90 million tonnes) of cement capacity to be added from 2008-09 to 2012-13, compa red to 37 million tonnes (additional clin er capacity of 28 million tonnes) adde d in the previous 5 years. This new capacity translates to 55-65 per cent of the existing cement capacity in the country, the bul of which are li ely to get co mmissioned in 2009-10 and 2010-11. Most of the additions are expected to come up in the South. Figure 1: Demand-supply scenario in cement industry 0 75 150 225 300 375 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09P 2009-10P 2010-11P 2011 -12P 2012-13P (mn tonnes) Cement Capacity Cement Consumption P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research Cement prices to ta e a beating Cement prices have been on an upward trajectory (CAGR of 11 per cent) over the last 5 years on the bac of a steady i ncrease in clin er operating rates. However, the large capacity expansions are e xpected to weigh down on price realisations starting 2009-10. Hence, CRISIL Rese arch expects cement prices to fall by as much as Rs 15-20 per bag over the next 2 years (2009 and 2010) as operating rates dip. Executive summary A-2 CRI SIL RESEARCH CEMENT ANNUAL REVIEW Margins under pressure Cement companies, whic h were able to increase realisations at a much faster pace due to the robust ope rating environment, will be able to only partially pass on input cost increases in 2008-09. In 2009-10 and 2010-11, when large capacities are expected to come o n-stream, pass through of input cost increases will be difficult. Therefore, CRI SIL Research expects cement companies to face margin pressures over the next 3 y ears. Figure 2: Operating Margins on downward trend 0% 5% 10% 15% 20% 25% 30% 3 5% 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09P 2009-10P P: Projected Sourc e: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL RE VIEW A-3 Cement consumption to register a CAGR of 8 per c ent over the next 5 years CRISIL Research expects domestic cement consumption to register a CAGR of 8.0 per cent in the next 5 years, which is marginally lower than the 8.2 per cent CAGR recorded in the previous corresponding period. Growth in the northern and southern regions, although lower than the last 3 years, is expected to outpace the all-India average. Cement consumption in the western reg ion, which rose by 8.1 per cent (CAGR) over the last 5 years, is li ely to be sl uggish in the subsequent 5 years on the bac of the expected slowdown in residen tial and commercial construction over the next 2-3 years. Figure 1: Growth in c ement consumption 8.9 7.7 9.8 8.1 8.2 9.0 6.6 9.2 6.8 5.2 6.1 8.0 0.0 2.0 4.0 6. 0 8.0 10.0 12.0 2002-03 to 2007-082008-09 to 2012-13P (CAGR %) North East South West Central All-India P: Projected Note: Cement consumption includes large as w ell as mini cement plants. Source: CRISIL Research Box 1: Demand forecasting me thodology In the long term, growth in cement demand tends to exhibit correlatio n with the country s overall GDP growth. Ta ing this into account, the methodology u sed in our study derives future cement demand by using the regression model. In order to estimate cement demand accurately, cement-GDP relationship has been spl it into three components. GDP GFCF GFCF - Construction Domestic cement consumpti on First, GDP and gross fixed capital formation (GFCF) were regressed to arrive at the estimation for GFCF. This was followed by an estimation of GFCF-construct ion by regressing the same with GFCF. On regressing GFCF- construction with dome stic cement consumption, it was observed that cement demand would increase at a CAGR of 7.6 per cent over the next 5 years. 1.0 Demand growth to sustain, albei t slower than the last 5 years A-4 CRISIL RESEARCH CEMENT ANNUAL REVIEW Chart 1: Region-wise ey indicators CENTRAL EAST SOUTH WEST NORTH2002-032007-08 Cemen t capacities26.236.2 Cement production24.136.2 Cement operating rates (%)92%100% Blending Ratio1.161.36 Cement Consumption22.534.5 SOUTH2002-032007-08 Cement ca pacities44.655.8 Cement production33.453.6 Cement operating rates (%)75%96% Blen ding Ratio1.091.18 Cement Consumption32.251.3 EAST2002-032007-08 Cement capaciti es22.326.5 Cement production16.722.7 Cement operating rates (%)75%86% Blending R

atio1.561.72 Cement Consumption18.026.0 WEST2002-032007-08 Cement capacities24.8 29.9 Cement production19.328.7 Cement operating rates (%)78%96% Blending Ratio1. 211.34 Cement Consumption24.536.1 CENTRAL2002-032007-08 Cement capacities21.027. 3 Cement production17.826.3 Cement operating rates (%)85%96% Blending Ratio1.131 .35 Cement Consumption19.024.5 2002-032007-08 Cement capacities139.0175.7 Cement production111.4167.6 Cement operating rates (%)80%95% Blending Ratio1.191.32 Ce ment Consumption116.1172.4 ALL INDIA Note: All numbers are in million tonnes, ex cept where stated. Source: CRISIL Research Housing sector to be the ey demand driver The housing mar et has witnessed a boom in the last 5 years on the bac o f increasing affordability, change in the demographic pattern, nuclearisation of families due to urbanisation and growing penetration of finance. Housing, whic h accounts for 60-65 per cent of total cement consumption, is li ely to grow at a healthy rate due to rising income levels, migration trends and strong growth p otential. We expect the total housing stoc , estimated at around 146 million uni ts, to increase by 3 per cent (CAGR) from 2008 to 2012, i.e. the addition of aro und 4.6 million units, annually. Table 1: Housing demand forecast 2008 2012 E stimated housing stoc (million units) 146.3164.7 Estimated floor space area (bn sq ft) 112.9135.8 Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL R EVIEW A-5 CRISIL Research has analysed the real estate mar et in Mumbai, Chennai, Delhi, Kol ata, Pune, Bengaluru, Hyderabad and Kochi from 2 008 to 2010. (For more details on CRISIL Researchs view on cities, please refer to our special report - City Views.) Our estimations of the expected supply in t he residential, commercial and retail segments in these cities during the period suggests that around 10 per cent of the cement demand from the real estate indu stry will come from these eight cities. Higher interest rates and steep rise i n real estate prices, ris to housing demand In the last 5 years, lower interest rates coupled with increasing penetration of housing finance played a significa nt role in boosting housing demand. However, in the last 1-2 years, while intere st rates have risen, resulting in higher EMI outgo, capital values of housing ha s also increased significantly across India. This has resulted in housing becomi ng unaffordable for a large section of potential buyers in the lower income cate gory. Infrastructure investments to continue to boost cement consumption We be lieve that infrastructure investments, which comprise 20-22 per cent of total ce ment consumption, will provide significant impetus for growth in cement consumpt ion. Construction investments are expected to double over the next 5 years, from Rs 4.7 trillion in 2002-03 to 2006-07 to Rs 9.2 trillion between 2006-07 and 20 11-12. Roads and power will continue to occupy a substantial share in infrastruc ture and industrial investments. (For additional details, refer Co nstruction Annual Review July 2008.) Roads have been the largest beneficiary of the infrastructure boom as its intensity of construction is the highest amongst all sectors ta en into consideration. (The majority of investments are expected for the National Highway Development Project.) Overall in the roads sector, CRI SIL Research expects investments to the tune of Rs 2,446 billion over the next 5 years (2006-07 to 2011-12). Other sectors such as power, ports, airports, rai lways and irrigation are expected to witness considerable investments as well, t hereby pushing up cement consumption. Figure 2: Comparison of infrastructure in vestments - 2001-02 to 2006-07 and 2006-07 to 2011-12 1.2 1.7 2.0 1.8 2.1 3.2 11 .7 4.5 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Power RoadsTelecomRailway s Irrigation Urban infraPortsAirports (Rs in billion) 0.0 2.0 4.0 6.0 8.0 10.0 1 2.0 14.0 (times) 2001-02 to 2006-07 2006-07 to 2011-12 Growth multiple Source: CRISIL Research A-6 CRISIL RESEARCH CEMENT ANNUAL REVIEW Commercial constr uction to continue, albeit at a slower pace The commercial construction segment can be divided into four parts - retail, office space, hotels, and other civil s tructures such as hospitals, multiplexes and schools, all of which are registeri ng strong growth that is translating into healthy cement consumption. Also, CRIS IL Research expects the IT and ITeS industries to register a CAGR of 17.8 per ce nt and 22 per cent over the next 5 years, respectively, due to global cues. Duri ng the previous corresponding period, the IT and ITeS industries rose at a CAGR

of 33 per cent and 34 per cent, respectively. The organised retail industry in India expanded at a healthy pace of over 28 per cent in 2006-07 on the bac of the influx of large domestic and international conglomerates loo ing to tap the local opportunity and capture mar et share. Hence, the total organised retail ma r et size, which was estimated at around Rs 679 billion in 2006-07, is expected to increase to Rs 2,366 billion by 2012. Industrial projects With the Indian e conomy growing at an average of 8 per cent in last 3 years, demand from all enduser segments has risen substantially. This has resulted in the majority of indu stries such as steel, cement, paper and petrochemicals operating at high utilisa tion rates to meet demand. Consequently, all major players have announced capaci ty expansion plans that are in various stages of implementation. Thus, industria l investments are expected to surge nearly three-fold, from Rs 2,867 billion in 2002-03 to 2006-07 to Rs 7,841 billion between 2007-08 and 2011-12. Northern re gion - real estate and infrastructure to drive demand CRISIL Research expects ce ment consumption in the next 5 years (2007-08 to 2012-13) to mirror the growth r ecorded in the previous corresponding period of 9 per cent (CAGR). The primary d emand driver will continue to be real estate construction activity in Delhi and Gurgaon. In addition, Delhis hosting of the 2010 Commonwealth Games will drive c ement demand as support infrastructure is put in place in the city. Urban infras tructure projects such as the Delhi Metro Rail and road projects by Road Infrast ructure Development Company of Rajasthan Ltd (RIDCOR) as well as the Gems and Je wellery Par and Manesar IT SEZ in Haryana along with the upcoming commercial co mplexes in Jaipur is expected to boost cement consumption in this region. Figu re 3: Cement consumption and production North 22.5 34.5 53.1 24.1 36.2 54.3 0 1 0 20 30 40 50 60 2002-032007-082012-13P (mn tonnes) Consumption Production P: Pr ojected Note: Cement consumption includes large as well as mini cement plants. S ource: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW A-7 North caters to a large portion of the cement demand from Uttar Pradesh Si nce 2003-04, around 80 per cent of the cement produced in the North is consumed within the eight states that form this region. Further, in comparison to the wes tern, central and eastern regions, cement production is the highest in the north ern region. Therefore, around 20 per cent of the cement produced within the regi on is despatched to states outside this region such Uttar Pradesh, Madhya Prades h and Gujarat. Hence, there is no export of cement from the region. CRISIL Resea rch believes that this trend will continue with Himachal Pradesh increasing its share of cement to northern Uttar Pradesh. Chart 2: Net outbound movement (do mestic) in the northern region in 2007-08 CENTRAL EAST SOUTH WEST (mn tonnes)200 2-032007-08 Cement sold to other regions4.97.1 Cement despatches coming from oth er regions1.93.9 Note: Figures in parenthesis are for 2002-03. Arrows refer to c ement despatches from the southern region to different states. Source: CRISIL Re search Eastern region dependent on industrial projects CRISIL Research estimate s cement consumption to increase at a CAGR of 6 per cent in the next 5 years (20 07-08 to 2012-13). This is slower than the 7 per cent registered in the precedin g 5 years (2002-03 to 2007-08). Although substantial investments are scheduled t o ta e place in this region - especially in the north eastern states - we believ e that cement offta e will slow down marginally as the cement consumption will p rimarily be driven by industrial projects, which are not cement-intensive. Furth er, some of the large industrial projects that are expected to come up in the re gion have been postponed due to various issues. A-8 CRISIL RESEARCH CEMENT ANN UAL REVIEW The ey consumption centers are West Bengal, Orissa, Bihar and Chatt isgarh, with West Bengal absorbing the maximum quantum of cement. Also, for the next 2 years, residential and commercial real estate development in the Kol ata metropolitan area is expected to at least maintain its current momentum. Figur e 4: Cement consumption and production East 18 26.0 35.8 16.7 22.7 31.6 0 5 10 15 20 25 30 35 40 2002-032007-082012-13P (mn tonnes) Consumption Production P: P rojected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research Southern region - growth momentum to continue CRISIL Re search expects cement consumption to rise by 9 per cent (CAGR) over the next 5 y

ears (2007-08 to 2012-13), which is identical to the growth registered in the pr evious 5 years (2002-03 to 2007-08). The ey demand drivers are residential, com mercial and retail construction in the tier I and II cities in this region, irri gation projects in Andhra Pradesh, the upcoming international airport in Chennai and the metro rail project in Bengaluru, amongst others. Thus, the main consump tion centers are Andhra Pradesh, Tamil Nadu and Karnata a. Figure 5: Cement con sumption and production South 32.2 51.3 79.7 33.4 53.6 81.3 0 10 20 30 40 50 60 70 80 90 2002-032007-082012-13P (mn tonnes) Consumption Production P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW A-9 N et outbound movement to decline marginally In 2007-08, around 88 per cent of the cement produced in the southern region was consumed within the region. CRISIL R esearch believes that this trend will continue and net outbound, as a per cent o f production, will decline from 11 per cent in 2007-08 to 9 per cent in 2012-13. Of the cement that is despatched, more than 90 per cent is to Maharashtra, whic h was also the highest cement consuming state in the country in 2007-08. Chart 3: Net outbound movement (domestic) in southern region in 2007-08 CENTRAL EAST S OUTH WEST (mn tonnes)2002-032007-08 Cement sold to other regions4.46.2 Cement de spatches coming from other regions0.30.8 Note: Figures in parenthesis are for 20 02-03. Arrows refer to cement despatches from southern region to different state s. Source: CRISIL Research Western region CRISIL Research expects cement consu mption to register a CAGR of 6.8 per cent in the next 5 years (2007-08 to 2012-1 3) as compared to 8.0 per cent in previous 5 years (2002-03 to 2007-08). We beli eve that the reason for the tapering off in consumption is due to the expected s lowdown in residential and commercial construction over the next 2-3 years. Furt her, more than 90 per cent of cement exports from India is from the western regi on, bound primarily for the Middle East. With the Middle East witnessing an incr ease in cement capacity, cement exports from India, more particularly from the w estern region, is expected to decline, pulling down cement consumption from the West in the near future. A-10 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 6: Cement consumption and production West 24.5 36.1 50.1 19.3 28.7 38.7 0 10 20 30 40 50 60 2002-032007-082012-13P (mn tonnes) Consumption Production P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research Historically, the region consumes more than 80 per cent of the cement it produces. Further, amongst all the regions, the West has predominantly been a cement-deficit region. Thus, cement despatches to this region is the hig hest - Gujarat receives cement from Rajasthan and Maharashtra from Karnata a. Ho wever, going forward, CRISIL Research believes that although around 90 per cent of cement produced within the region will be consumed by Gujarat and Maharashtra , the net inbound shall be in the same range due to cost-efficiencies. (In 200708, around 60 per cent of cement despatched from Karnata a to Maharashtra was fr om plants near the border.) Central region - cement consumption to be sustaine d CRISIL Research estimates cement consumption in the central region to increase at a CAGR of 6.1 per cent in next 5 years (2007-08 to 2012-13) as against 5.2 p er cent in previous 5 years (2002-03 to 2007-08). Cement consumption in the regi on is primarily driven by housing and infrastructure projects in both states, i. e. Madhya Pradesh and Uttar Pradesh. Projects such as Harsi Main Canal project i n Gwalior, SEZs coming up in Noida li e the Greater Noida IT SEZ project and the 1,047- m Ganga Expressway are expected to boost cement consumption in this regi on. CRISIL RESEARCH CEMENT ANNUAL REVIEW A-11 Figure 7: Cement consumption and production Central 19 24.5 33.0 17.8 26.3 31.7 0 5 10 15 20 25 30 35 2002-032007-082012-13P (mn tonnes) Consumption Production P: Projected Note Cement consumption includes large as well as mini cement plan ts. Source: CRISIL Research

This page is intentionally left blan

RISIL RESEARCH CEMENT ANNUAL REVIEW A-13 Capacities in ex cess of 100 million tonnes to be added over the next 5 years In the last 5 years (2003 to 2008), cement consumption in India rose at a CAGR of 8.2 per cent on t he bac of increased real estate construction activity and infrastructure spends . During this period, cement capacity expanded at a CAGR of 4.8 per cent, result ing in clin er operating rates moving up from 83 per cent in 2001-02 to 95 per c ent in 2007-08. Figure 1: Incremental cement capacity and consumption 114.7 79. 3 65 45.7 0 20 40 60 80 100 120 140 Net cement capacities addedAdditional cement demand (mn tonnes) 2002-03 to 2007-08 2008-09 to 2012-13P P: Projected Source: CRISIL Research CRISIL Research expects 115 million tonnes (additional clin er capacity of 90 million tonnes) of capacity to be added between 2008-09 and 201213, compared to 37 million tonnes (additional clin er capacity of 28 million ton nes) added in the previous 5 years. This new capacity translates to 55-65 per ce nt of the countrys existing cement capacity. The bul of capacity additions are li ely to come up between 2009-10 and 2010-11, with the majority expected in th e South. Large capacity additions to pull down operating rates With the settin g up of new cement capacities, CRISIL Research expects clin er operating rates t o decline - clin er operating rates, which were in the range of 85-95 per cent f rom 2003-04 to 2007-08, is expected to be in the region of 75-80 per cent betwee n 2009-10 and 2012-13. This dip in operating rates will impact cement prices. 2.0 Excess capacity will lead to a fall in prices A-14 CRISIL RESEARCH CE MENT ANNUAL REVIEW Figure 2: Net cement capacity additions and clin er operatin g rates 0 5 10 15 20 25 30 35 40 45 2002-03 2003-04 2004-05 2005-06 2006-07 2007 -08 2008-09P 2009-10P 2010-11P 2011-12P 2012-13P (mn tonnes) 50 55 60 65 70 75 8 0 85 90 95 100 (%) Cement capacity addition (mn tonnes) Utilisation rates (%) P: Projected Source: CRISIL Research Cement prices to decline by Rs 15-20 per b ag in the next 2 years Cement prices have been on an upward trajectory (CAGR of 11 per cent) during the last 5 years on the bac of a steady increase in clin er operating rates. However, the commissioning of large-scale capacities is expect ed to dampen this beginning 2009-10. Hence, CRISIL Research expects cement price s to fall by as much as Rs 15-20 per bag over the next 2 years (2009 and 2010) o ver cement prices in 2007-08 as operating rates decline. Figure 3: Clin er oper ating rates and cement prices 135 235 70 90 110 2002-032007-082012-13P Clin er o perating rates (%) 0 50 100 150 200 250 Prices (Rs per bag) Clin er operating r ates Prices P: Projected Source: CRISIL Research Based on our projected demand growth of 8 per cent for the next 5 years, the additional cement consumption wil l be 80 million tonnes. Therefore, if operating rates are to be maintained, we b elieve that the industry requires 90 million tonnes of additional cement capacit y. We are of the view that any additional cement capacity above 90 million tonne s will start exerting pressure on cement prices. CRISIL RESEARCH CEMENT AN NUAL REVIEW A-15 Lower capacity addition not to significantly alter situation CRISIL Research has built scenarios wherein only 90 per cent or 80 per cent of base capacities come on-stream and analysed their impact on clin er operating rates. Even if lower cement capacities get commissioned, clin er o perating rates, at best, will be in the range of 80-85 per cent from 2009-10 to 2012-13. (Our observation on cement prices ma es us believe that it tends to ris e when clin er operating rates start breaching the 90 per cent level.) In a sc enario where almost 20 per cent of cement capacities come on-stream, the South s tands to benefit as over one-third of the countrys capacity additions is expecte d in this region. Hence, lower capacity additions will improve operating rates, consequently cushioning any steep fall in cement prices. Figure 4: Clin er uti lisation rates under different scenarios -all-India 75% 79% 83% 87% 91% 95% 2002 -032004-052006-07 2008-09P2010-11P2012-13P All-India expected clin er utilisatio n rates 90% of base capacities added 80% of base capacities added P: Projected Sou rce: CRISIL Research AV Birla Group betting on northern mar ets CRISIL Research expects cement capacities in the North to increase at a CAGR of 8.9 per cent ov

er the next 5 years, with Grasim Industries the primary contributor to this augm entation. The company, which commissioned a 4.4-million-tonne brownfield cement plant in Shambhupura, Rajasthan, is setting up a 4.5-million-tonne greenfield ce ment plant in Kotputhali, Rajasthan. The plant is expected to come on-stream in the third quarter of 2008-09. Following this, the share in capacity terms of lar ge companies, except for Grasim Industries, will decline marginally. A-16 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 5: Company-wise capacity share in northern region (2007-08) Figure 6: Company-wise capacity share in northern region (2012-13) (per cent) Ambuja Cements 18 ACC 14 Shree Cement 17JK Synthetic s 11 Grasim 9 Others 31 (per cent) Shree Cement 9 JK Synthetics 7 Grasim 24 Othe rs 32 ACC 13 Ambuja Cements 15 Source: CRISIL Research Source: CRISIL Research The surge in cement consumption has also prompted other companies to set up ce ment plants in the limestone-rich clusters of Rajasthan (Chanderia) and Himachal Pradesh - Rajasthan has the fourth largest cement-grade limestone reserves, wit h total availability of 7,634 million tonnes (proven equivalent 4,763 million to nnes). Around 35 per cent of the expected cement capacity in the North is li ely to be set up in Himachal Pradesh. Southern-based player, India Cement, has ente red this region with the intention of setting up plants in Rajasthan and Himacha l Pradesh. Northern mar et will be able to absorb the additional capacities The northern mar et is li ely to be the only area in India which will be able to ab sorb the additional cement capacity that comes up in the region. As a result, cl in er operating rates are expected to be in the range of 85-90 per cent over the next 5 years. However, cement prices are li ely to fall more moderately in the northern region than others. Figure 7: North Clin er operating rates and cemen t prices Figure 8: North Net cement capacity additions 88 90 92 94 96 98 100 1 02 2002-032007-082012-13P Clin er operating rates (%) 0 50 100 150 200 250 Pric es (Rs per bag) Clin er operating rates Prices 0 2 4 6 8 2008-09P2009-10P2010-11 P2011-12P2012-13P million tonnes P: Projected Source: CRISIL Research Source: C RISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW A-17 E astern region to be the worst-affected on account of capacity additions CRISIL R esearch expects cement capacities to increase at a CAGR of 9.5 per cent over the next 5 years, while cement consumption will grow at a much slower rate of 6.5 p er cent. This is li ely to further push down operating rates to 65-70 per cent l evels in the projected 5 years compared to 75-80 per cent recorded in the preced ing 5 years. More than 50 per cent of cement capacities coming up in the East are in Chattisgarh as the Bilaspur limestone cluster is located in the state. Cu rrently, most of the active production centers are also located within this stat e. Amongst companies, in terms of installed cement capacity, Lafarge had the l argest share in 2007-08, which we believe will remain in 2012-13 as well. Figu re 9: East Clin er operating rates and cement prices Figure 10: East Net cemen t capacity additions 60 64 68 72 76 80 2002-032007-082012-13P Clin er operating rates (%) 0 50 100 150 200 250 Prices (Rs per bag) Clin er operating rates Pric es 0 2 4 6 8 10 2008-09P2009-10P2010-11P2011-12P2012-13P million tonnes P: Proje cted Source: CRISIL Research Source: CRISIL Research Figure 11: Company-wise capacity share in eastern region (2007-08) Figure 12: Company-wise capacity shar e in eastern region (2012-13) (per cent) UltraTech Cement 13 Lafarge 19 Others 4 0 Ambuja Cements 11 ACC 17 (per cent) Lafarge 22 Others 43 Ultratech Cement 6 Am buja Cements 18 ACC 11 Source: CRISIL Research Source: CRISIL Research A-18 CRISIL RESEARCH CEMENT ANNUAL REVIEW Southern region - maximum capacity additi ons The South comprises three prime limestone clusters, and hence, around 35 per cent of Indias cement plant expansions, both greenfield and brownfield, are com ing up in this region. Of this, around 65 per cent of the capacity is coming up in Andhra Pradesh. CRISIL Research, therefore, expects cement capacity in the So uth to increase at a CAGR of 11.2 per cent over the next 5 years (2007-08 to 201 2-13). This region is highly fragmented, which we believe will remain in the nea r future. The largest capacity additions are by UltraTech Cement and JK Cement total in excess of 3 million tonnes. Further, a large number of mini cement pl ants in this region such as Sagar Cements and Raghuram Cements are expanding the

ir capacities. Hence, the share of others in the pie-chart below will increase f rom 51 per cent in 2007-08 to 57 per cent in 2012-13. Therefore, although Indi a Cement is increasing its capacity by 2.2 million tonnes in 2009-10, its share in terms of capacity, in the South will decline from 16 per cent in 2007-08 to 1 2 per cent in 2012-13. Meanwhile, cement consumption increased at a CAGR of 9.8 per cent over the last 5 years (2002-03 to 2007-08) whereas capacity rose by on ly 4.6 per cent (CAGR). Hence, prices in the southern region rose the maximum a CAGR of 12 per cent - on the bac of clin er operating rates moving up from a low of 80 per cent in 2002-03 to 95 per cent in 2007-08. However, with large c apacities planned in the South, CRISIL Research believes clin er operating rates will fall bac to 80 per cent by 2012-13, leading to a decline in cement prices . Figure 13: South Clin er operating rates and cement prices Figure 14: South Net cement capacity additions 0 20 40 60 80 100 2002-032007-082012-13P Operatin g rates (%) 0 50 100 150 200 250 300 Prices (Rs per bag) Clin er operating rates Prices 0 2 4 6 8 10 12 14 2008-09P2009-10P2010-11P2011-12P2012-13P million tonn es P: Projected Source: CRISIL Research Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW A-19 Figure 15: Company-wise ca pacity share in southern region (2007-08) Figure 16: Company-wise capacity share in southern region (2012-13) (per cent) India Cements 16 Madras Cement 10 Grasi m 7Dalmia Cements 6 Others 51 ACC 10 (per cent) Dalmia Cements 8 Others 57 Grasi m 4 Madras Cement 9 India Cements 12 ACC 10 Source: CRISIL Research Source: CRIS IL Research Western region - largest demand center in the country; to see decli ne in prices CRISIL Research expects cement capacity to increase at a CAGR of 11 .6 per cent over the next 5 years (2007-08 to 2012-13) as against a 3.8 per cent increase (CAGR) in the last 5 years (2002-03 to 2007-08). Cement consumption, w hich has been robust, is expected to be in the range of 7.0 per cent in the subs equent 5 years. Cement prices in the last 3 years rose at a CAGR of 19 per cen t. However, given the expected demand-supply scenario, CRISIL Research believes that prices are set to decline as clin er operating rates move down from 96 per cent in 2007-08 to 82 per cent in 2009-10. Figure 17: West Clin er oprating ra tes and cement prices Figure 18: West Net cement capacity additions 40 55 70 8 5 100 2002-032007-082012-13P Oparating rates (%) 0 50 100 150 200 250 Prices (Rs per bag) Clin er operating rates Prices 0 2 4 6 8 10 2008-09P2009-10P2010-11P20 11-12P2012-13P million tonnes P: Projected Source: CRISIL Research Source: CRIS IL Research A-20 CRISIL RESEARCH CEMENT ANNUAL REVIEW Maximum capacity a ugmentation will ta e place in 2009-10 - to the tune of 7.9 million tonnes. Sang hi Cements is setting up a 4.5-million-tonne greenfield plant in La hpat, Gujara t, which will be commissioned at the start of 2009-10. Binani Cement, a new entr ant in this territory, is also expected to set up cement plants in Gujarat. Thou gh, this is li ely to bring down UltraTech Cements share in capacity, the compan y will continue to retain its leadership position in 2012-13. Figure 19: Compa ny-wise capacity share in western region (2007-08) Figure 20: Company-wise capac ity share in western region (2012-13) (per cent) UltraTech Cement 34 Ambuja Ceme nts 23 Others 20 Century Textiles 5 Grasim 9 Sanghi Cements 9 (per cent) Sanghi Cements 14 Ambuja Cements 17 UltraTech Cement 20 Century Textiles 7 Grasim 5 Oth ers 37 Source: CRISIL Research Source: CRISIL Research Central region to witn ess steep fall in operating rates CRISIL Research expects cement capacity to inc rease at a CAGR of 10 per cent over the next 5 years (2007-08 to 2012-13). Birla Corporation Ltd is aggressively expanding in this region by augmenting its capa city to the tune of 4.8 million tonnes over the next 2 years. Hence, its mar et share, in terms of installed cement capacity, will increase from 8 per cent in 2 007-08 to 20 per cent in 2012-13. Figure 21: Central Clin er operating rates and cement prices Figure 22: Central Net cement capacity additions 0 20 40 60 80 100 120 2002-032007-082012-13P Operating rates (%) 0 50 100 150 200 250 Price s (Rs per bag) Clin er operating rates Prices 0 2 4 6 8 10 2008-09P2009-10P201011P2011-12P2012-13P million tonnes P: Projected Source: CRISIL Research Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW

A-21 Over the last 5 years, cement consumption rose at a CAGR of 5.2 per cent while net cement capacity increased at a CAGR of 5.4 per cent. Hence, this tight dema nd-supply scenario led to the rise in prices - at a CAGR of 7.0 per cent over th e last 3 years. As the estimated installed cement capacity will surpass the expe cted consumption, CRISIL Research believes that prices will decline. Thus, cemen t operating rates, which have moved from 91 per cent levels in 2004-05 to around 95 per cent in 2007-08, are expected to contract to 70-75 per cent in the next 2 years. Figure 23: Company-wise capacity share in central region (2007-08) Fig ure 24: Company-wise capacity share in central region (2012-13) (per cent) Centu ry Textiles 12 ACC 14 Jaypee Group 26 Others 28 Grasim 12 Birla Corporation 8 (p er cent) Century Textiles 9 ACC 17 Jaypee Group 19Others 26 Grasim 9 Birla Corpo ration 20 Source: CRISIL Research Source: CRISIL Research Blending to increas e marginally In the last 5 years, the blending ratio in the cement industry incr eased from 1.19 in 2002-03 to 1.32 in 2007-08. CRISIL Research expects this to r ise further to 1.37 in 2012-13. Cement producers opt for increased levels of ble nding as it provides manufacturers the flexibility to contain costs during a dow n-cycle. Given that cement consumption will increase at a CAGR of 8 per cent ove r the next 5 years, we believe that this incremental addition in blending is li ely to result in an additional supply of 8 million tonnes. Also, the proportion of blended cement is expected to move from 74 per cent in 2007-08 to 80 per cent in 2012-13. Figure 25: Product mix (2007-08) PBFS 8 OPC 26 PPC 66 (per cent) ( 2012-13) PPC 72 PBFS 8 OPC 20 (per cent) Source: CRISIL Research Source: CRISIL Research A-22 CRISIL RESEARCH CEMENT ANNUAL REVIEW The necessity to produce increased volume of blended cement is: Clin er substitution by cheaper material Fre ight reduction by split locating grinding capacity near blending sources Conservat ion of dwindling limestone reserves Cost savings in terms of power and fuel Blend ing calculation The potential blending is calculated after ta ing into account t he projected cement production for 2012-13 and forecasting the blending ratio. T he blending ratio has been calculated after ta ing a view of the projected varie ty- wise mix of cement and considering the industry benchmar s of the maximum bl ending possible on ey varieties of cement - portland pozzolona cement (PPC) and portland blast furnace slag cement (PBFSC) have been considered for estimating the blending potential. The OPC-PPC-PBFSC ratio (the variety-wise mix) 5 years hence was calculated after ta ing into account the current mix and the availabil ity of fly ash and slag. The blending ratio for 2012-13 was arrived at after ta ing into account the variety-wise product mix and technical aspects relating to blending (which put a cap on the maximum amount of fly ash/slag that can be blen ded with clin er). Thus, the blending ratio calculated was analysed in the ligh t of our projections of cement production in 2012-13 in order to arrive at the m aximum capacity addition possible through blending. The wor ings for the same ar e summarised in the following table: Table 1: Blending calculation Projected pr oduction* - cement 2012-13 238 (a) Projected blending ratio - 2012-13 1.37 (b) Projected production - clin er 2012-13 173.4 (c=(a/b) Existing blending ratio 2007-08 1.32 d Cement projection in 2012-13 at current blending 228.8 (e=(c*d)) Blending potential (mt) 8.7 ((a)-(e)) *Cement production is estimated on the ba sis of the consumption in 2012-13. Source: CRISIL Research Fly ash Fly ash, Indias primary source of pozzolana, is mainly derived from thermal power plants . In 2006-07, around 54 million tonnes of fly ash was generated, of which around 42 per cent was utilised by the cement industry. In the near future, CRISIL Res earch expects around 43 million tonnes of fly ash to be added to the existing ca pacity. Thus, we believe that utilisation at existing rates will continue and th ere will be no supply constraints of fly ash. Slag After fly ash, slag produce d as a waste product by steel plants is the most popular blending material. Due to source concentration, freight consideration dictates its geographic usage. It s usage is the highest in the eastern region as cement plants are situated in th e vicinity of steel plants. We believe that the maximum limit permitted by the B ureau of Industrial Norms (BIS), i.e. 55 per cent can be mixed with clin er, sha ll be followed in the near future as well. CRISIL RESEARCH CEMENT ANNUAL REVI EW

A-23 Cement prices expected to soften on bac of large capacity additions Cement companies have planned capacity expansions to the tun e of 115 million tonnes (clin er capacity of 90 million tonnes) over the next 5 years. This is in excess of the projected cement consumption in the country, whi ch is li ely to increase at a CAGR of 8 per cent over this period. Hence, post e xpansions, CRISIL Research expects operating rates to decline significantly, res ulting in the softening of cement prices. Figure 1: Cement capacity and consump tion 0 50 100 150 200 250 300 350 2003-04 2004-05 2005-06 2006-07 2007-08 2008-0 9P 2009-10P 2010-11P 2011-12P 2012-13P (mn tonnes) Cement capacity Cement consum ption P: Projected Note: Cement consumption includes large and mini cement plan ts. Source: CRISIL Research Cement companies, which were able to increase reali sations at a much faster pace due to the robust operating environment, will be a ble to only partially pass on increases in input costs in 2008-09. In 2009-10 an d 2010-11, when large capacities are expected to come on-stream, pass through of input cost increases will be difficult. Therefore, CRISIL Research expects ceme nt companies to face margin pressures over the next 3 years. Power and fuel cos ts to increase at a CAGR of 6 per cent over next 2 years The energy cost of ceme nt companies has risen sharply as landed cost of coal (used to fire the lin and generation of captive power) has increased considerably in 2008-09. (After a ga p of 3.5 years, state-owned Coal India Ltd raised coal prices by 10-15 per cent. ) Hence, CRISIL Research expects domestic coal prices to increase in excess of 1 0 per cent during the year. Meanwhile, cement companies dependent on imported co al will witness a much sharper appreciation in prices. International non-co in g coal prices (Newcastle, Australia), which rose by 44 per cent (y-o-y) in 2007, pea ed at $140 per tonne in June 2008 - a doubling of prices over a 1-year peri od. CRISIL Research expects prices to hover in this range in 2008-09, and then d ecline by 10-15 per cent in 2009-10. 3.0 Cement companies will lac pricing fl exibility A-24 CRISIL RESEARCH CEMENT ANNUAL REVIEW Based on the fuel mix and probable changes in this mix, we estimate power and fuel costs to increase by a round 14 per cent (y-o-y) in 2008-09, and remain relatively stable in 2009-10. Figure 2: Power cost v/s operating expenses Figure 3: Non-co ing coal price move ment 15 17 19 21 23 25 27 29 31 33 35 2003-042004-052005-062006-072007-08 (Rs/ba g) 55 60 65 70 75 80 85 90 (Rs/bag) Power and fuel Operating expenses 0 1,000 2, 000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2005200620072008F2009F (Rs/ tonne) Domestic Imported F: Forecast Note: For further reference on coal, please refer to our Annual Review 2008 on the coal sector. Source: CRISIL Research Freight costs to increase at a CAGR of 8 per cent over the next 2 years Freight costs a ccount for over 20 per cent of operating costs. With the average lead distance t hat cement travels in excess of 500 ms, the share of road transportation is on a declining trend as cement companies prefer rail wherever possible since the pr ice differences per tonne ilometer is significant. Based on the transportatio n mix of the cement industry, CRISIL Research believes that freight costs will i ncrease by 12 per cent (y-o-y) in 2008-09 and by 5 per cent in 2009-10. Figure 4: Road freight v/s diesel prices - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 199 8-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (Rs . per tonne/ m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 ((Rs/litre) Road Dies el prices Notes 1) Diesel prices are average of Mumbai and Delhi. 2) For furthe r reference, please refer to our Domestic Freight Transportation Services report . Source: CRISIL Research, IOCL CRISIL RESEARCH CEMENT ANNUAL REVIEW A-25 Operating margins to be under pressure In 2008-09, operating mar gins will come under pressure as operating costs will increase on the bac of a surge in coal prices and higher freight rates. Cement companies will be constrai ned in passing on these cost increases to consumers on account of fresh cement c apacities expected to get commissioned during this period. Further, the governme nts frequent intervention to restrict any hi e in retail cement prices will cap any increase in realisations. CRISIL Research therefore expects net realisatio ns to fall by 2 per cent in 2008-09 and by 7 per cent in 2009-10 [due to the est

imated 40 million tonnes of cement capacities (net) to be added during the year] . Consequently, operating margins will be on a downward trajectory. Table 1: O perating margins (Rs/bag) 2004-05 2005-06 2006-07 2007-08 2008-09P 2009-10P Net realisations (ex indirect taxes) 111112146172172157 Distribution 171923293234 Ne t sales realisations (ex excise and freight) 9492123143140123 Operating expendit ure 757177879495 Raw material, stores etc 252326282930 Power and fuel 3231313438 38 Sales and mar eting 434566 Wages and salaries 656777 Other manufatcuring expe nses 556778 Other expenses 444666 Operating profits 192246564728 Operating margi ns 17.1%19.4%31.3%32.7%27.0%18.0% P: Projected Source: CRISIL Research Hi e in interest rates to add to cement companies woes With large capacity expansions pl anned, the rise in interest rates is expected to impact companies that have ta e n significant recourse to debt financing. Adding to the woes of the cement compa nies will be the pressure on operating margins, which will reduce cash accruals. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-i Sections 1.0 Industry characteristics B-1 - Industry B-1 - Cost elements B-2 2.0 Products and technology B-13 - Types of cement B-13 - Ready-mix concret e B-16 - Process B-17 - Plant and equipment B-18 - Types of RMC B-18 - A dvantages of RMC B-18 - RMC mar et in India B-19 3.0 Cement manufacturing proc ess B-21 - Raw materials B-21 - Process profile B-22 4.0 Region-wise scenari o B-29 - North B-29 - South B-30 - East B-32 - West B-33 - Central reg ion B-35 5.0 Player profile B-37 - Associated Cement Companies Ltd B-37 - Am buja Cements Ltd B-39 - UltraTech Cement Ltd B-41 - Grasim Industries Ltd B43 - Jaipra ash Associates Ltd B-45 - India Cements Ltd B-47 - Madras Ceme nts Ltd B-49 - Shree Cement Ltd B-51 Charts 1.0 Industry characteristics 01 Cement Factors influencing demand B-6 02 Cement Factors affecting domestic sup ply B-9 3.0 Cement manufacturing process 01 Manufacturing process of mini-cemen t plants B-25 Continued State of the industr y July 2008 B-ii CRISIL RESEARCH CEMENT ANNUAL REVI EW continued Figures 1.0 Industry characteristics 01 Industry structure B-1 02 Coal requirement vs coal allocation B-3 03 Consumption (region-wise) B-4 04 Inf rastructure spending B-7 2.0 Products and technology 01 Variety-wise cement pro duction B-16 3.0 Cement manufacturing process 01 Process profile B-23 4.0 Reg ion-wise scenario 01 North Mar et share (2007-08) B-29 02 North Domestic mar e t prices B-30 03 South Mar et share (2007-08) B-31 04 South Domestic mar et pr ices B-31 05 East Mar et share (2007-08) B-32 06 East Domestic mar et prices B -33 07 West Mar et share (2007-08) B-34 08 West Domestic mar et prices B-34 09 Central Mar et share (2007-08) B-35 10 Central Domestic mar et prices B-36 5 .0 Player profile 01 ACC Proportion of consumption by various states (2006-07) B-38 02 ACC Mar et share and ran (2006-07) B-38 03 ACC Brea up as a per ce nt of sales (Mar-02) B-38 04 ACC Brea -up as a per cent of sales (Dec-07) B-38 05 GACL Proportion of consumption by various states (2006-07) B-40 06 GACL M t share and ran (2006-07) B-40 07 GACL Brea -up as a per cent of sales (Jun-02 ) B-40 08 GACL Brea -up as a per cent of sales (Dec-07) B-40 09 UltraTech Cemen t Ltd Proportion of consumption by various states (2006-07) B-42 10 UltraTec h Cement Ltd Mar et share & ran (2006-07) B-42 11 UltraTech Cement Ltd Brea up as a per cent of sales (Mar-04) B-42 12 UltraTech Cement Ltd Brea -up as a p er cent of sales (Mar-07) B-42 13 Grasim India Ltd Proportion of consumption of varoius states B-44 14 Grasim India Ltd Mar et share & ran (2005-06) B-44 15 Grasim India Ltd Input costs as per cent of cost of sales (2001-02) B-44 16 Gra sim India Ltd Input costs as per cent of cost of sales (2006-07) B-44 17 Jaipra ash Associates Ltd Proportion of consumption by various states (2005-06) B46 continued H CEMENT ANNUAL REVIEW CRISIL RESEARC

B-iii continued Figures 5.0 Player p rofile 18 Jaipra ash Associates Ltd Mar et share & ran (2005-06) B-46 19 Jaipr a ash Associates Ltd Brea -up as a per cent of sales (Mar-02) B-46 20 Jaipra as h Associates Ltd Brea -up as a per cent of sales (Mar-07) B-46 21 India Cements Ltd Proportion of consumption (2006-07) B-48 22 India Cements Ltd Mar et shar e & ran (2006-07) B-48 23 India Cements Ltd Brea -up as a per cent of sales (M ar-02) B-48 24 India Cements Ltd Brea -up as a per cent of sales (Mar-07) B-48 25 Madras Cement Proportion of consumption by various states (2005-06) B-50 26 Madras Cement Mar et share & ran (2005-06) B-50 27 Madras Cement Brea -up as a per cent of sales (Mar-02) B-50 28 Madras Cement Brea -up as a per cent of s ales (Mar-07) B-50 29 Shree Cement Proportion of consumption by various states (2006-07) B-52 30 Shree Cement Mar et share & ran (2006-07) B-52 31 Shree Ceme nt Brea -up as a per cent of sales (Mar-02) B-52 32 Shree Cement Brea -up as a per cent of sales (Mar-07) B-52 Tables 1.0 Industry characteristics 01 Indust ry Status B-2 02 Power and fuel requirement in cement manufacturing process B-2 03 Events during the period of government control B-10 04 Events during the peri od of partial de-control B-10 05 Events post de-control B-11 2.0 Products and t echnology 01 White cement Capacity and production B-20 4.0 Region-wise scenari o 01 North Capacity/ production/ operating rate B-29 02 South Capacity/ produc tion/ operating rate B-30 03 East Capacity/ production/ operating rate B-32 04 West Capacity/ production/ operating rate B-33 05 Central Capacity/ production / operating rate B-35 5.0 Player profile 01 ACC As of December 31, 2007 B-37 0 2 ACC Key financial indicators B-39 03 GACL As of December 31, 2007 B-39 04 GA CL Key financial indicators B-41 05 UltraTech Cement Ltd As of December 31, 20 07 B-41 06 UltraTech Cement Ltd Key financial indicators B-43 continued B-iv C RISIL RESEARCH CEMENT ANNUAL REVIEW continued Tables 5.0 Player profile 07 Gra sim India Ltd As of December 31, 2007 B-43 08 Segment revenue Cement business B-44 09 Grasim India Ltd Key financial indicators B-45 10 Jaipra ash Associates Ltd As of December 31, 2007 B-45 11 Segment revenue Cement business B-46 12 J aipra ash Associates Ltd Key financial indicators B-47 13 India Cements Ltd As of December 31, 2007 B-47 14 India Cements Ltd Key financial indicators B-49 1 5 Madras Cement As of December 31, 2007 B-49 16 Madras Cement Key financial in dicators B-51 17 Shree Cement As of December 31, 2007 B-51 18 Shree Cement Key financial indicators B-53 CRISIL RESEARCH CEMENT ANNUAL REVIEW B-1 Industry The Indian cement industry comprises 130 large cement pl ants with an installed capacity of 198.62 million tonnes as on March 2008 and mo re than 365 mini cement plants constituting 6 million tonnes of effective capaci ty. The industry can be broadly classified into three categories: The first category consists of players having a pan India presence Holcim-controlled ACC and Ambuja (36.8 million tonnes) and Aditya Birla-controlled Grasim, Century Te xtile and UltraTech (38.4 million tonnes). CRISIL Research expects leadership to alternate between the two players as both are adding capacities through greenfi eld and brownfield projects. The second category comprises players whos e presence is confined to one region and have a firm hold in their respective ma r ets. This segment includes players such as Lafarge (East), India Cement (South ), Jaypee Group (North and Central), Shree Cement (North), Birla Corp, Binani, D almia and Madras Cement amongst others. This segments capacity is 63.9 million t onnes, which is approximately 36.4 per cent of the industry size. Several player s from this segment li e Lafarge and Binani are planning to set up capacities ou tside their present region of operations to expand their reach along with tappin g opportunities present (in other regions) as well. The third category consis ts of stand-alone players, which constitutes a combined capacity of 36.6 million tonnes. Players such as CCI, J&K Cement and Panyam Cements fall into this categ ory. These players are local players who run the ris of getting marginalised. Figure 1: Industry structure (per cent) Other players 21 Pan-India players43 R

egional players 36 Notes 1) Pan India players include the Holcim Group consistin g of ACC and Ambuja Cements Ltd and Aditya Birla Group comprising Grasim Indust ries, UltraTech and Century Textile. 2) Regional players include India Cement, S hree Cement, Madras Cement, Birla Corp, Lafarge, Binani Cement, Jaypee Group et c. 3) Others include CCI, J&K Cement, Paynam Cement, Penna Cement, Mangalam Ceme nt etc. Source: CMA 1.0 Industry characteristics B-2 CRISIL RESEARCH CEMENT AN NUAL REVIEW Table 1: Industry Status Industry status No. of companies Share of capacity (million tonnes) % share of total capacity 1997-98 2002-03 2007-08 1997-98 2002-03 2007-08 1997-98 2002-03 2007-08 Large players (pan India) 4 4 2 31 63 75 32.5% 45.2%42.8% Regional players 12 12 14 22 43 64 23.2% 31.2%36.4% Standalone players 41 34 35 43 33 37 44.3% 23.6%20.8% Total 57 50 51 96 139 176 100.0% 100.0%100.0% Source: CRISIL Research Cost elements There are four major costs associated with the production of ce ment: 1. Power and fuel costs 2. Raw material costs 3. Selling expenses 4. Other expenses 1. Power and fuel The cement industry is power-intensive with power a nd fuel costs constituting approximately 30 per cent of the cost of sale of ceme nt, and hence has a major impact on the companys operating expenditure. Coal is used to fire the iln and different varieties of fuel (diesel, coal, pet co e an d lignite) is used to grind the clin er in the iln. The power requirements of cement plants vary according to the heat treatment process. The wet process req uires 1,300-1,600 ilo calories ( cal) per g of clin er and 110-115 Wh of powe r to manufacture 1 tonne of cement, while the dry process requires only 750-950 cal per g of clin er and 120-125 Wh of power. Even though the dry process uti lises more electricity, the wet process consumes much more fuel and is more ener gy intensive than the dry process. Table 2: Power and fuel requirement in cemen t manufacturing process Energy required in process Power required in lin ( c al per g of clin er) ( wh per tonne of cement) Wet process 1,300-1,600110-115 D ry process 750-950120-125 Source: CRISIL Research While a large portion of the power requirement is met through state electricity boards, increasingly companie s are opting for captive power plants to reduce costs and dependence on state el ectricity boards where power cuts are frequent. In 2006-07, 82.2 million tonnes of cement was produce using captive power plants, which wor s out to be around 5 2.8 per cent of the total cement production. CRISIL RESEARCH CEMENT ANN UAL REVIEW B-3 The Indian cement industry primarily uses coal , pet co e and lignite for its fuel requirement. Apart from depending on the rec eipts against lin ed quota, the cement industry has to rely on the open mar et a s the allocation is not sufficient to meet its coal requirement. The primary all ocation of coal in India is to the power and steel sectors with the cement indus try receiving only 3.5 per cent of the total production. Figure 2: Coal requir ement vs coal allocation 0 5 10 15 20 25 30 2001200220032004200520062007 (mn ton nes) Coal against lin ages Coal required Source: CMA 2. Raw material The secon d major component in the production of cement is raw material costs, which prima rily constitutes limestone cost. Raw material accounts for 30-40 per cent of cos t of sales. Cement plants are generally located near limestone quarries, as lime stone cannot be transported over long distances. Hence clin er plants are cluste red around 10 limestone deposits Himachal, Saurashtra, Tiruchirapalli, Satna, G ulbarga, Chandrapur, Bilaspur, Chanderia, Nalgonda and Yerraguntla. As on Decemb er 2007, there was around 105 million tonnes of capacity around these clusters, which constitutes around 87 per cent of the industry size. Apart from limesto ne, other raw materials used by the cement industry are fly ash, slag and gypsum . 3. Selling expenses In the cement sector, the manufacturing facilities and en d-user mar ets are at considerable distances from each other, primarily because cement plants are located near limestone reserves. (Limestone reserves are confi ned to certain regions and cannot be transported over long distance.) Hence, cem ent has to travel a considerable distance to reach the end-users. And since ceme

nt is a low-value, high-volume commodity, transporting it to the end-user accoun ts for a significant portion of the cost for cement manufacturers - it constitut es more than 10 per cent of cost of sale of cement. There are three ey modes of transportation used by the cement industry i.e. road, rail and sea, with road a nd rail contributing more than 90 per cent of the despatches. In order to cont rol freight costs, companies strategically locate the clin er units closer to li mestone reserves whereas the grinding units are set up closer to consumption cen tres, primarily because transporting clin er is cheaper than transporting cement , and blending material li e fly ash or slag may not be available near the limes tone reserve. B-4 CRISIL RESEARCH CEMENT ANNUAL REVIEW Rail is the preferred mode of transport over long distances (over 500 ms) because of its lower cost. However, the availability of wagons and the distance needs to be considered. Th e cement industry also benefits as cement is classified as a priority commodity when it comes to transportation of cement. On the other hand, road transportatio n is better for short distances and bul transportation as it minimises secondar y handling and secondary freight costs. The sea route is the cheapest mode of transportation, but only coastal players can ta e advantage of this mode as they can transport clin er and cement more economically within the country as we ll as to other regions. 4. Other expenses Other expenses include employee cost s, administration expenses, and repair and maintenance charges amongst others. T hese account for 15-20 per cent of the cost of sales. Value chain The industr ys supply chain primarily comprises raw material suppliers, cement manufacturers , distributors and end-users. Typically, companies enter into agreements with re spective state governments and coal companies to source limestone, power and coa l, respectively. The primary distributors in the supply chain are wholesalers (l arge traders with a margin of Rs 1-2 per bag) and retailers (small traders with a margin of Rs 5-6 per bag). Wholesalers-cum-retailers operate in small towns or rural areas. Cement industry regional in nature Cement is a high-volume, lo w-value commodity. Transporting over long distances adds to the cost, resulting in lower margins to the players. This ma es cement a regional commodity where lo wer distribution cost ma es it remunerative to producers. Cement consumption var ies region-wise because the demand-supply balance, per capita income and level o f industrial development differ in each state and region. In 2006-07, the Sout h accounted for the largest share of consumption (44.0 per cent) followed by the North (29.9 per cent), West (28.7 per cent), East (24.0 per cent) and the centr al region (22.4 per cent). Figure 3: Consumption (region-wise) 0 5 10 15 20 2 5 30 35 40 45 50 2002-032003-042004-052005-062006-07 (mn tonnes) North East Sout h West Central Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-5 Seasonality of demand and cyclicality of the industry Cement demand i s seasonal with demand declining during the monsoons due to a slowdown in constr uction activity. The monsoons extend from June to September across India (except in parts of Tamil Nadu and Kerala, where the monsoon extends from November to J anuary). Consequently, demand is at its nadir during the July- September quarter and highest during the January-March quarter. Demand pea s in March and is at a trough in August. In addition, the cement industry, li e most capital-intensiv e commodity industries, is cyclical in nature with respect to supply. Given the high gestation period of 24-30 months, there is a time lag between capacity buil d-up and cement demand. Demand for cement is lin ed to economic growth. Hence, w hen the economy is strong, demand increases. As a result, the profitability of p layers rises, leading to capacity additions by existing players and the entry of new players. However, since it ta es 2 -2.5 years to build a cement plant, it i s li ely that before completion, demand could decrease or stagnate, or the capac ity additions could exceed demand. This can lead to a fall in cement prices, and the industry could face a downturn, leading to players reducing operating rates or shutting down capacities. Demand dynamics Cement demand is closely lin ed t o the growth of the construction sector. (A regression analysis of cement demand and investments in the construction sector shows a high correlation of 0.99 and moderate elasticity of 0.55.). Consequently, cement demand has posted a healthy

growth rate of around 8.34 per cent since 1996-97 till 2007-08, propelled by th e increased focus on infrastructure development, and higher demand from the hous ing sector and industrial projects. B-6 CRISIL RESEARCH C EMENT ANNUAL REVIEW Chart 1: Cement Factors influencing demand Cement demand S egmentwise offta e Offta e from corporate projects other than housing/infrastruc ture (2) Government offta e from infrastructure projects. This includes bridges, wells, dams, other public wor s, concretisation of roads, ports and railways (3 ) Offta e from private infrastructure projects. This includes roads, ports and p ower (4) Other offta e, such as commercial structures (5) Seasonality Repair wor (1, 2, 3, 4, 5) Offta e from the housing sector (1) Cement availability Domest ic supply Imports Per capita income Government outlay Access to finance Housing finance schemes Estimated housing shortage Rural income Urban income Exchange ra te International prices Customs duty Agricultural output Global demand-supply Ac cess to capital Govt regulations such as ULCRA Land availability FDI/govt policy regarding privatisation Internal accruals Capital mar et Credit availability Di sbursement policy of financial institutions Funding from overseas mar ets FDI: F oreign direct investment; Govt: Government; ULCRA: Urban Land Ceiling Regulation Act Note Cement availability is equal to cement supply plus imports less export s. Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW B-7 Demand drivers Cement demand is primarily derived from housing (6 0-65 per cent), infrastructure (20-25 per cent), commercial construction (10-15 per cent) and industrial segments (5-10 per cent). Demand has grown at a healthy pace of over 8.5 per cent (CAGR) during the last 5 years on the bac of strong demand registered in its end-user segments. Housing Housing accounts for a ma jor portion of total domestic cement demand - approximately 60-65 per cent. Hous ing activity has remained buoyant during the past few years due to the governmen ts favourable housing policies such as tax incentives and higher plan allocation . The growing middle class along with rising income levels significantly contrib uted towards the growth in the housing segment. Infrastructure Increas ed government focus on infrastructure development is expected to further propel cement demand, as more infrastructure development is required to sustain a GDP g rowth rate of above 7.5 per cent. The allocation towards development has increas ed over the years, leading to higher demand for cement. Figure 4: Infrastruct ure spending - 500 1,000 1,500 2,000 2,500 2001-022002-032003-04 2004-052005-062 006-07 (Rs bn) Power Roads Telecom Airports Irrigation Ports Railways Urban infr astructure Source: CRISIL Research Commercial construction The commercial const ruction sector can be divided into retail, office space, hotels and other civil structures such as hospitals, multiplexes and schools amongst others, all of whi ch are witnessing strong growth. This directly translates into healthy cement de mand. The organised retail industry in India grew at a healthy pace of over 28 per cent in 2006-07 on the bac of the influx of large domestic and internation al conglomerates loo ing to tap the retail opportunity and capture a larger mar et share. The size of the total organised retail mar et was estimated at around Rs 679 billion in 2006-07, which is expected to increase at a healthy pace. B-8 CRISIL RESEARCH CEMENT ANNUAL REVIEW Also, with India emerging as an imp ortant bac -office destination, large global companies are setting up facilities in the country. Construction of commercial complexes and office spaces have inc reased in most large cities such as Mumbai, the national capital region (NCR), C hennai, Bangalore, Pune and Hyderabad. In the IT and ITES space as well; there a re sizeable investments being made by domestic and global IT companies, which is contributing to the growth in construction activity, and thereby, increasing th e offta e of cement. Industrial investments The strong growth in India has resu lted in operating rates pea ing in industries such as steel, aluminium, textiles and petrochemicals. These industries have announced expansion projects to addre ss growing demand, which are at advance stages of implementation, leading to hig her inta e of cement. End-users The main purchasers of cement are the governme nt, institutional buyers and retail buyers. Government The government obtains c ement at competitive prices due to its purchase process. The government buys cem

ent through two routes - direct tenders or purchase through the Director General of Supplies and Disposals (DGSAND). The DGSAND receives cement rates from vario us cement companies, selects the vendor, and distributes it amongst government a gencies registered with DGSAND. The government gets 60 per cent of its total req uirement through the direct tendering process and the remaining 40 per cent thro ugh DGSAND. Institutional buyers (other than the government) Institutional buye rs li e builders buy cement from either cement companies or wholesalers. Bul pu rchases are Rs 10-15 lower per bag than retail purchases. Typically, the civil e ngineers and contractors decide on the variety and brand of cement to be purchas ed. Retail buyers Retail buyers include the housing segment, which procures fro m retailers as they have low requirements. Consequently, retail buyers have less pricing flexibility than institutional buyers. In the case of retail buyers, th e mason decides the variety and brand of cement to be purchased. C RISIL RESEARCH CEMENT ANNUAL REVIEW B-9 Chart 2: Cement Fact ors affecting domestic supply Domestic supply Supply from existing large/mini ce ment units Supply from additions (new/expansions) Cement/clin er exports Cement imports Operating rates Operative installed capacity Capacity added Operating ra te (new units are capable of operating at 75 per cent, 80 per cent and 100 per c ent during the first 3 years of operation) Landed cost of imports Domestic price s Technology Maintenance related shut-downs Producer efforts to rationalise supp lies Aggregate installed capacity Non-operational capacity Domestic demand- supp ly Availability of finance Seasonality Demand-supply in the export destination I nternational cement/clin er prices Facilities, such as ships/captive jetties Cus toms duty Demand-supply of cement exporting countries Exchange rate Port handlin g facility Source: CRISIL Research Supply in the cement industry is influenced by factors such as demand growth and the level of consolidation in the region. C urrently, the industrys capacity utilisation has been at around 95 per cent, thu s indicating strong demand. B-10 CRISIL RESEARCH CEMENT ANNUAL REVIEW Brief on the cement industry Evolution of the cement industry The cement industry is a core sector and one of the eys for the countrys growth. (Cement is one of th e most basic construction materials, and hence, an essential item for the infras tructure development.) Cement production commenced in India as early as 1914. The first cement unit was set up at Porbandar in 1914 with a capacity of 1,000 t onnes per annum. The industrys installed capacity as of March 2008 was 198 milli on tonnes. The growth of the cement industry, however, has been uneven with th e majority of capacity additions ta ing place only during the last decade. Gover nment regulations stunted the growth of the industry - in the past, the governme nt regulated the industry through licencing, price and distribution controls. Th e removal of these controls resulted in rapid progress in terms of new capacity creation and higher production, which saw the country move from cement scarcity to a surplus position. India currently ran s as the second largest cement produc er in the world. The evolution of the cement industry in India can be broadly classified into three periods - the period up to partial de-control (up to 1982) , the period up to total de-control (1982-89) and the period after total de-cont rol (after 1989 to date). The following table summarises the events in the cem ent industry: Table 3: Events during the period of government control Period Events 1942 Free on rail (FOR) destination price o f cement fixed on a cost-plus basis. 1946-1952 Cost of production of ACC used as a basis for fixing cement prices. Freight equalisation system introduced simu ltaneously. 1958 Introduction of three tier retention price scheme, whereby rete ntion prices are decided based on the age of the plant and technology employed . Jan-66 Price and distribution controls lifted. Jan-68 Price and distribution c ontrols re-imposed. Apr 1969 - May 1979 Period of single price regime; total dis tribution control. Cement industry grew at around 4.0 per cent during this per iod as against the high growth rates in the past. Sep-77 Government guarantee s 12 per cent post-tax return on the net worth of new cement companies. Source : CRISIL Research Table 4: Events during the period of partial de-control Period Events Feb-82 Companies allowed to sell 33 per cent of their production

in the open mar et, while price and distribution controls enforced for the re maining production. 1985-86 Proportion of cement for free mar et sale increased to 50 per cent. Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW B-11 Table 5: Events post de-control Period Events Mar-89 Price and distribution controls remove d completely. Jul-91 Industrial licencing abolished for new capacities. Apr-08 G overnment banned cement exports. Jun-08 Ban on the cement exports partially lift ed and the exports from the Gujarat ports are allowed. Source: CRISIL Research This page is intentionally left b B-13 Types of cement Cement is classified into various categories based on its composition a nd specific end-uses. Primarily cement is classified into portland, blended and speciality cement. Portland cement Portland cement is the most common type of cement in general usage, as it is a basic ingredient of concrete. A mixture of limestone and clay is ground and burnt at a very high temperature to form clin e r. The clin er is ground to a fine powder with the addition of gypsum (up to 5 p er cent) to form portland cement. The essential components of portland cement ar e lime, silica, alumina and iron oxide. There are different types of portland cement, which differ based on their chemical composition; however, the manufactu ring process remains the same. Portland cement consists of tricalcium silicate o r C3S, dicalcium silicate or C2S, tricalcium aluminate or C3A, and tetracalcium aluminoferrite or C4AF. [C = CaO - calcium oxide (calcia), S = SiO2 - silicon di oxide (silica), A = Al2O3 - aluminium oxide (alumina), F = Fe2O3 - iron oxide (f erric oxide)]. The varying proportion of these constituents imparts diverse prop erties to the different types of portland cement. Ordinary portland cement In ordinary portland cement (OPC), C2S accounts for 20-60 per cent of the total com position, C3S 20-60 per cent, C3A 0-16 per cent and C4AF 1-16 per cent. Althou gh OPC is suitable for all types of civil engineering wor s, it cannot be used f or mass concrete wor li e multi-storeyed buildings. Moderate heat portland cem ent OPC, when mixed with water and allowed to hydrate, generates a considerable amount of heat, which is not suitable for mass concrete wor . However, the heat generated during hydration can be lowered by altering the chemical composition of the cement. Such cement is called moderate heat portland cement (MHPC). This cement is more resistant to sulphate as compared with OPC. Rapid hardening ceme nt Rapid hardening cement (RHC) is a special-purpose cement used for urgent rep airs (li e airport runway repairs). RHC or high early strength cement develops c ompressive strength within 24 hours, as compared with 28 days in the case of OPC . The average particle size is smaller in this cement due to which it gains stre ngth more quic ly than ordinary cement. It generates more heat in the early sta ges and can be useful in cold weather concreting. However, its principal use is in manufacturing pre-cast concrete units where the high early strength of the co ncrete permits quic re-use of moulds and formwor . 2.0 Products and technology B-14 CRISIL RESEARCH CEMENT ANNUAL REVIEW Sulphate-resistant cement The com pressive strength of concrete, which is made using OPC, MHPC and RHC, deteriorat es on account of continued contact with soil and water, which are rich in sulpha tes. Sulphate-resistant cement (SRC) is a type of portland cement, which conta ins less than 5 per cent tricalcium aluminate (C3A). It is used for marine const ruction or in places that are rich in sulphates. Oil well cement Oil wells are drilled at depths of 500 metres or more. After the drilling operation, the well s are lined with an annulus made of cement concrete. Since the temperature at th ese depths is over 1,000 degree Celsius (0C), if portland cement grout is pumped into the well, it would set instantly and obstruct the cementation or setting process . Hence, the cement used for lining oil wells should be able to withstand settin g time by up to 40-120 minutes, and thereafter, set within 24 hours. In addition , it should have a strength of over 100 g per cm2. In oil well cement (OWC), th

lan

CRISIL RESEARCH CEMENT ANNUAL REVIEW

e percentage of tricalcium aluminate (C3A) is reduced to less than 3 per cent of its total composition in order to control/modify the setting time. In India, ac cording to the Bureau of Industrial Standards (BIS), there are nine types of OWC , depending on the type of construction and the specific application. White ce ment White cement is portland cement made from specially selected raw materials, usually pure chal and white clay ( aolin), containing very small quantities of iron oxides and manganese oxides. The chemical complexes formed with iron oxide present in the cement raw meal give OPC cement its grey colour. However, if the proportion of iron oxide is reduced to less than 0.4 per cent, cement becomes w hite in colour. Iron oxide improves the burning of raw meal; however, it is diff icult to burn the raw meal for white cement, on account of the low content of ir on oxide. As white cement has all the physical properties of OPC, it can be used in all types of construction where OPC is used; however, its usage is limited, as it is more expensive than OPC. Blended cement In order to produce blended ce ment, certain natural or man-made compounds such as pozzolona, slag and sandston e are mixed with portland cement clin er and ground finely. Blended cement is mo re suitable for certain applications as compared to portland cement. Blended c ement is also called low-heat cement as it generates lesser heat during hydratio n compared with OPC. This cement is used for large concrete wor s such as dams a nd piers. Blended cement minimises the ris of developing contraction crac s on account of the lower heat of hydration. Portland blast furnace slag cement Bla st furnace slag (a waste product of the pig iron furnace) can be used to produce slag cement. However, blast furnace slag does not have cementitious properties if it is cooled slowly and ground finely; hence, it is cooled quic ly or quenche d and subsequently ground to acquire cementitious properties. The quenching proc ess is called granulation , and the slag is nown as granulated blast furnace slag. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-15 Granulated blast furnace slag is mixed with lime or OPC clin er and ground to form slag cement. Portland blast furnace slag cement (PBFSC) is the most widely used slag cement, and contains 25-65 per cent of slag, 5-6 per cent of gypsum and Portland cement clin er. Apart from having OPC properties, PBFSC has other properties such as lo wer heat of hydration and higher sulphate resistance. Super sulphate cement, a nother type of slag cement, is prepared by grinding granulated slag, anhydrite a nd clin er in the proportion of 70:15:15. This cement is more sulphate-resistant than PBFSC or SRC. Portland pozzolona cement Pozzolona is a clay (natural or synthetic), which when ground with lime/clin er and mixed with water, produces c ementitious compounds. Highly reactive pozzolona or fly ash is mixed with Portla nd cement clin er and ground with 5-6 per cent gypsum to form Portland pozzolona cement (PPC). PPC contains up to 25 per cent pozzolona or fly ash. It has a low er heat of hydration as compared with OPC, and is also relatively more resistant to sulphates. As a standard, fly ash can be used to the extent of 15-35 per cen t. It has the physical properties of OPC, and hence, can be used for all types of construction wor for which OPC is used. However, in PPC the shrin age is le sser as compared with OPC. Masonry cement Most varieties of cement when mixed with sand and water get converted into mortar, which is coarse and not water ret entive. Masonry cement is a more plastic mortar and is used for masonry wor suc h as laying, binding and plastering bric s. Portland clin er is ground with lime stone, sandstone or granulated slag in the proportion of 1:1 to produce masonry cement. Some quantities of hydrated lime and/or a plasticiser are added to impar t higher plasticity. Speciality cement Speciality cement has several special pr operties and is used in specific applications. Expansive cement/shrin age compe nsated cement Concrete prepared from portland cement or blended cement shrin s on setting and hardening. Cement should expand on setting and hardening when it is used for pre-stressed, pre-fabricated concrete products and as a grout for fi lling crac s. This cement is prepared by increasing the proportion of gypsum and aluminous cement clin er to Portland cement clin er while grinding. Super high strength cement This type of cement is required for urgent repairs of importan t concrete structures li e foundation pillars. It is prepared in jet mills by fi

nely grinding portland cement clin er with a higher proportion of tricalcium sil icate. The tricalcium silicate content is around 60 per cent of the clin er and its fineness should be at least 600 g per cm2. B-16 CRISIL RESEARCH CEMEN T ANNUAL REVIEW Alinite cement A special low-energy cement process has been de veloped to manufacture cement, in which over 5 per cent calcium chloride is adde d to the raw meal while grinding. As the burning point of raw meal is lowered si gnificantly, less fuel is required for burning. The calcium chloride is vapouris ed and condensed in the iln dust, which is re-circulated. A part of the chlorid e gets attached to the clin er components and increases its compressive strength . This process is still in the development stage. However, it would be viable if sufficient by-product waste and calcium chloride is available at low cost. P roduct mix The product mix in the cement industry has changed significantly ove r the last 5 years. While OPC accounted for a major portion of the cement produc tion, recently cement producers have shifted to higher production of blended cem ent. The following graph shows the share of various types of cement in the overa ll production in 2006-07 vis- -vis 2002-03. Figure 1: Variety-wise cement pr oduction As on March 2002-03 PPC 39 PBFS 10 OPC 51 (per cent) As on March 2006-0 7 OPC 31 PPC 61 PBFS 8 (per cent) Source: CRISIL Research The proportion of ble nded cement has risen from 49 per cent in 2002-03 to 69 per cent in 2006-07, pri marily due to better margins offered in PPC, growing acceptability in the mar et and less pressure on the natural reserves of limestone. Ready-mix concrete Introduction Ready-mix concrete (RMC) is a mixture of cement, aggregate, water and other ingredients, which are weighed and batched at a centrally located plan t and directly placed at the construction site without undergoing any further tr eatment. The operations are carried in factory-li e conditions and are completel y automated. Hence, RMC is a value-added, semi-finished product and results in s uperior quality concrete. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-17 RMC is used extensively in many countries such as the US, Australia, New Zealand and England, where 70-95 per cent of all the concrete comes from ce ntral batch plants. In India, a few large projects have operated RMC plants for several years. However, the first commercial RMC plant was set up in 1992 at Pun e. Demand The main factors that could influence domestic demand for RMC include : Consumer (contractors and engineers) education by RMC suppliers. Competitive prici ng of RMC could lead to higher offta e if the price difference between RMC and s ite mixed concrete (SMC) is reduced. Emergence of high cement consuming centres ar ound metro cities. Increasing quality consciousness of the user segment. Entry of multinational construction agencies and foreign consultants. Entry of private pla yers in infrastructure projects. (RMC demand from sub-contractors is li ely to i mprove if the government sub-contracts infrastructural construction projects on a turn ey basis to contractors who are responsible for material supplies.) Increas ed supply of the product would result in higher offta e. At present, there are v ery few RMC suppliers in India. Reasons for the slow growth in RMC consumption The initial controls on cement pricing and distribution hindered the RMC busines s, owing to the shortage of cement. (Cement is an important component of RMC.) A part from having easy access to cement, RMC also requires technical competence t o manufacture the concrete (to ensure mixes with the desired properties). Presen tly, the usage of RMC is restricted because of its higher price vis--vis SMC and the inadequate facilities at construction sites to utilise RMC effectively. Als o, in India, labour is less expensive as compared with RMC; as a result, most me dium and small-scale builders opt for SMC. Logistics is another hurdle for RMC a s it is difficult for RMC truc s to pave through small and narrow roads where th e building is being constructed. These agitator truc s being bul y, occupy a lar ge part of the road, causing traffic bottlenec s. This apart, the additional tax es on RMC prove to be an impediment. Also, new mar eting initiatives need to b e underta en because either users are unaware of the product or are not convince d of its benefits. This is important, as RMC supply should match potential deman d. If supply is less than demand, then the potential business is lost. However, if supply exceeds demand, the per unit cost of concrete increases due to idle ca

pacity. Moreover, RMC is considered economically viable only if it is sold withi n a radius of 30-40 m from the plant. If the distance between the plant and con struction site is more, the wet concrete would harden in the mixer itself. The only positive development has been the mandatory usage of RMC in time-bound pro jects. Process Cement is stored in silos, and aggregates (sand and stone chips) are stored in stoc piles or hoppers. These are then transported to an elevated tower for batching. The batched materials are then fed into the mixer, where the y are mixed at a regulated speed, in order to obtain the concrete mix of the des ired quality. B-18 CRISIL RESEARCH CEMENT ANNUAL REVIEW Plant and equipment A typical RMC facility includes a central batching and mixing plant, revolving t ransit mixers, and concrete pumps and conveyors. The following operations are c arried out at the central batching and mixing plant: Storage of materials Weighing as per the required proportion mix Discharging the weighed materials to the mixer Mi xing Batching and control operations are completely automated. A batching and mixing plant can store around 100 mixes. (A mix is a particular proportion of ce ment and aggregate.) The revolving transit mixer could be a truc mixer or truc agitator, which is used to transport RMC to the construction site. The mixer c ontinuously agitates the mix to prevent early stiffening. Concrete pumps and con veyors are used to pump concrete at the construction site. The daily output of a RMC plant is not directly dependent on the capacity of the batching unit, inst ead, it is influenced by the per truc capacity, number of truc s and the daily number of trips. The daily number of trips is determined by the transport time, which depends on the distance between the RMC plant and construction site, trans portation bottlenec s and road conditions. Typically, three round trips are unde rta en daily. Types of RMC There are two types of RMC Central mixed RMC: The mixi ng is done at the central plant. The mixed concrete is transported in an agitato r truc , which revolves slowly, in order to prevent segregation and early stiffe ning of the mix. In the majority of developed countries, 70-95 per cent of all c oncrete comes from central batch plants. Transit mixed RMC: The materials are batc hed at a central plant. However, they are mixed in a mixer truc , at the site, o r mixed immediately before the concrete is discharged. Advantages of RMC RMC o ffers certain advantages over SMC: Quality control: RMC ensures quality (in terms of strength, durability and performance), as all the constituents are weighed i n the required proportions and mixed at the RMC unit. This is especially useful for projects that require high quality control. Moreover, the quantity of additi ves (fly ash, plasticisers and retarders) can be monitored in order to ensure su perior quality of the cement. Faster speed of construction: This is due to the con tinuous mechanised operations, which is especially important for large, time-bou nd construction projects. Eco-friendly: RMC is considered to be a clean product du the absence of used cement bags and dust at the construction site. Convenience for congested sites: RMC eliminates the need to stoc pile raw materials required to ma e concrete at the project site. Lower wastage: Cement wastage is minimised due to bul handling and storage. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-19 Simplifies procurement and storage of raw materials: The user is rel ieved of logistics of supply and storage of multiple raw materials at the site. Re duces manpower requirements: Manpower expenses are reduced due to lower labour a nd supervisory requirements. Range of concrete grades: The RMC plant has the flexi bility to manufacture a wide range of concrete due to computerised batching proc ess. Correct proportions of ingredients: Computerised batching operations result i n accurate proportions for the various raw materials. RMC mar et in India RMC i s still in at a nascent stage in India, as only 5-10 per cent of cement producti on is converted into RMC, as against 70 per cent in developed countries. Repor tedly, the growth of RMC is predominantly driven by the metro cities. Bangalore is the largest mar et for RMC owing to the several construction activities in th e city (IT campuses, flyovers and government sponsored infrastructure projects). Bangalore continues to lead in the consumption of RMC in the country. The high consumption in Bangalore has led cement majors li e ACC Ltd, Ready Mix (India) Ltd, Grasim Industries and L&T Concrete to set up RMC plants in the city. Essen

tial requirements to set up a new plant Adequate water supply at the plants site. If potable water is not available in and around the location of the plant, water has to be transported from distant locations, thereby further pushing up costs. Concrete consumption around the site, as the concrete has to be transported. Pl ayers As on March 31, 2007, the large players in the domestic RMC mar et were L& T Concrete, RMC Readymix (India) Pvt Ltd, Grasim Industries and ACC Ltd with a m ar et share of 29, 15, 13 and 8 per cent, respectively. These players account fo r around 65 per cent of the total mar et share in India. In May 2008, Lafarge bought out L&T Concrete for Rs 14 billion. Lafarge would be buying out 58 concr ete plants of L&T Concrete, which have an estimated volume of 4.1 million metric cubic capacity. Earlier in the year, Lafarge started its first RMC operations i n Raipur, Chattisgarh. White cement Introduction White cement has all the physi cal properties of OPC (is also called grey cement), and can be substituted for O PC. However, its use is limited to tiles and flooring, as it is more expensive. White cement is produced under a fixed manufacturing process, with smaller quan tities of iron and manganese. Although white cement and grey cement have similar physical properties, they cannot be produced in the same plant. B-20 CRISIL RESEARCH CEMENT ANNUAL REVIEW OPC is grey in colour due to the chemical comple xes formed with iron oxide present in the cement raw meal. Moreover, haematite, bauxite and limestone are heated using coal, which gives cement its dar colour. When the proportion of iron oxide in cement is reduced to less than 0.4 per cen t, cement turns white in colour. Thus, the use of haematite is minimised for man ufacturing white cement, and it is replaced by pure silica or sand. Also, the cl in er for white cement is burnt using fuel oil instead of coal. Special cooling techniques are also used to manufacture white cement. White cement in India In India, white cement is primarily used as filler between ceramic tiles or for dec orative purposes. For cement to retain its whiteness, the ash content in coal ha s to be minimal. However, as the ash content of domestic coal is high, gas or oi l is used as a fuel to manufacture white cement. The white cement mar et in Indi a is small as it is nearly three-times expensive than grey cement. White cement is expensive because the usage of pure silica adds to the production cost. This apart, freight costs are higher owing to limited supply and spread-out mar ets. The excise duty on an ad valorem basis and higher temperature (requiring more oi l) further adds to production costs. Players Grasim and JK Synthetics are the two major players in the white cement mar et. Grasim s white cement plant at Khangar , Rajasthan is the largest cement plant in India. The plants total installed cap acity of white cement is 1.1 million tonnes. Table 1: White cement Capacity a nd production Grasim 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Installed capacity 000 tonnes 400 400400400475475475 Production 000 tonnes 252 268310311315350365 Capacity utilisation % per cent 63 677878667477 Travancore 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Installed capacity 000 t onnes 30 3030303030n.a. Production 000 tonnes 30 1922272324n.a. Capacity utilisa tion % per cent 100 6575907780n.a. JK Cement 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Installed capacity 000 tonnes 300 300300300300350400 Pro duction 000 tonnes 186 184200216124227249 Capacity utilisation % per cent 62 616 772416562 n.a.: Not available Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW B-21 Raw materials The essential raw materials to manufacture cement is limestone or chal , which i s used for producing clin er. Clin er, the intermediate product, is the ey ingr edient of cement and is a raw material for manufacturing cement with additives s uch as bauxite, iron ore and gypsum. Depending on the grade of the limestone, ad ditives such as silica, alumina and iron ore are added to achieve the products q uality. The required grade, constituting lime, should be 40-41 per cent in the l imestone, and accordingly the additives are added. Fuels li e coal, pet co e, n atural gas, lignite or oil can be used. The industry has even begun considering the usage of alternate fuels such as agro wastes, waste oils, animal meal and ri ce hus owing to the shortage of fuel li e coal and rising fuel prices. The choi ce of fuel depends on its availability, cost, the efficiency level and process e

mployed. The general process of manufacturing cement from mining limestone from the quarry to the final product is as follows: Limestone benching, drilling and blasting To ma e cement, it is necessary to have the required minimum constitu ents in limestone. For that the company ta es a sample of the limestone at vario us levels in the form of steps, which are called benches and determines the qual ity assurance, as quality varies, and compares it with the standard required. Th is is called limestone benching. Limestone benching is done so that additives ca n be added accordingly for giving the basic characteristics. Once the limestone is benched, it is drilled and bro en into small pieces. This is nown as blasti ng. Blasting is of two types primary blasting and secondary blasting. Primary b lasting is the first stage where the limestone is bro en into pieces. If these a re not small then a second blasting is done. Usually, the pieces are made by pri mary blasting. After blasting, the excavation process ta es place, which is als o nown as limestone raising, where the limestone is ta en from the quarry to th e factory for crushing. Crushing Limestone is crushed and reduced to a size s uitable for storage and blending. The raw materials are then ground in a grinder . The size of the crushed material required depends on the type of the grinding mill. Generally, crushing is done in a primary and a secondary crusher. The prim ary crusher could be a fully mobile and self-propelled unit operating near the q uarry face, a semi-mobile unit moved at infrequent intervals, or a static unit. The secondary crusher is a static unit and is used if required. Pre-homogeneous stage Crushed limestone is pac ed, as this is important while transporting the crushed limestone, and transported onto the reclaimer stage. This is the pre-hom ogeneous stage where additives li e silica, alumina and iron ore are added to sp read it in such a way so as to ma e it of uniform quality. This helps in reducin g the variations in the chemical characteristics of limestone. 3.0 Cement manuf acturing process B-22 CRISIL RESEARCH CEMENT ANNUAL REVIEW Raw mill grinding Reclaiming is followed by raw milling, where the raw-meal is grounded into a fin e powder to be burnt in the iln. The raw meal must be finely ground so that it reacts fully on passing through the iln. There are various types of milling s ystems such as vertical roller mill (used for bigger capacity) and ball roller m ill (used for smaller capacity). The selection of a particular mill is influence d by the type of raw material available, power consumed and the project outlay. Modern milling systems use separators/classifiers, which separate the fine produ ct and return the coarse materials to the grinding unit. Blending and storage R aw milling is followed by blending and storage. Blending is done in silos. Typic ally, two or more silos are used in a series or in parallel with a total capacit y of at least one day s raw-meal feed. The raw-meal is continuously circulated and b lended in the first silo; it then passes to the second silo for further homogeni sation (perfect blending and mixing of various constituents). Alternatively, ble nding and storage could be combined in a single large silo wherein the blending occurs on extraction through a series of orifices at the base, with limited flui disation. Pre-heating stage and iln After the raw meal is blended , it is heated in a rotary iln. In modern cement plants, before the heat treatm ent in the iln, the raw meal is heated in a pre-heater or/and a pre-calcinator system in order to ensure a higher degree of burning and enhance the products qu ality. The vertical cyclone chambers are used through which raw material passes through the iln and the hot gases are used to pre-heat the material as they swi rl through the cyclones which rises more then 200 feet from the iln. The iln is a refractory, lined with refractory bric s for insulation throughout its hig h-heat zones. The iln is cylindrical and marginally inclined to a horizontal po sition (typically with a gradient of 3-4 degrees), and rotates at 2-4 revolution s per minute. It is an important constituent of the cement-ma ing process. The solid material, which passes down the iln while it rotates, flows in the opposi te direction to the flame. Gas, oil or pulverised coal is used to ignite the fla me at the lower or front end of the iln. The various processes occurring in the iln include evaporation of water, thermal decomposition of clay minerals (at 3 00-650 0C), calcite formation (at 800-950 0C), liquid formation (at around 1,250 0C), and the formation of clin er (at over 1,400 0C). The clin er from the i ln passes into a cooler, where convective air flow cools the clin er for subsequ

ent handling and grinding. The heat is reclaimed and recycled to the iln as sec ondary combustion air. Other gases reclaimed from the suspension pre-heater (SP) , pre-calcinator systems, and the cooler are used as primary combustion air in t he iln. The excess air from the cooler is cleaned and released into the atmosph ere. Process profile There are four processes of heat treatment - dry process, wet process, semi-wet process and semi-dry process. Till the 1970s, the wet pro cess technology accounted for a major share of the cement industry . But since t he early 1980s, the use of the dry process increased significantly. CRISIL RE SEARCH CEMENT ANNUAL REVIEW B-23 In 1950, there were only 33 ilns in India, out of which 32 were wet-based and 1 was running on the semi-dry process. In 2006, there were 162 ilns, out of which 128 were based on the dry process, 26 on wet process and 8 on semi-dry process. Figure 1: Process profile 18 128 32 93 26 188 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 195019702006 No . of ilns Dry process Wet process Semi-dry process Source: CRISIL Research Dry process The dry process is commonly used across the world to manufacture cement . In the dry process, the iln feed has moisture content of around 0.5 per cent. The feed is fed into a suspension pre-heater, which consists of a system of c yclones. In the cyclone system, the iln feed is re-circulated and heated by a m ixture of counter-current and co-current flow of exhaust gases coming from the iln. The gas temperature at the pre-heater inlet and exit are typically around 5 00C and 3500C, respectively. At the iln inlet, the temperature is above 7500C f or solids and 1,2000C for gases. Alternately, the ground raw meal is fed into a pre-calcinator. In a pre-calcinator, the raw meal is partly calcined (by up to 90 per cent) by burning over 50 per cent of the total fuel requirement. (Calcin ation is de-carbonation of the calcium carbonate content in the ground raw meal. De-carbonation can be achieved in less than a minute in a pre-calcinator.) The temperature of the iln feed entering the iln could be above 9000C. The rotary iln, in which the remaining heat treatment occurs, is shorter, as compared wit h that used in the wet process. The length/diameter ratio (L/D) is 15-18. The ma ximum temperature that the material attains on passing through the hottest zone of the iln is around 1,4500C. The nodules of clin er formed are in a partially molten state. The surface temperature of the clin er reduces to around 1,1000C, before it passes on to a cooler. Wet process In the wet process, the iln feed has moisture content of 30-40 per cent and de-flocculants to enable pumping. The slurry feed is fed directly through the upper end of the iln. Generally, the iln has a diameter of around 6 metres and is around 200 metres in length. Steel chains are hung in the dry zone near the upper end of the iln to transfer heat from the hot gases to the moist slurry feed. Towards the end of the chain (locat ed at the upper end of the B-24 CRISIL RESEARCH CEMENT ANNUAL REVIEW iln), t he slurry feed forms nodules, which are dried and partly de-carbonated. Further down the iln, the feed is fully de-carbonated to form clin er. Semi-wet proc ess The semi-wet process is a modification of the wet process. The slurry is de hydrated in a filter press to form a ca e with moisture content of around 20 per cent. The iln feed is fed directly into a long chained iln or a pre-heater an d a short iln. (The pre-heater could be a moving Lepol grate or disintegrator c yclone system.) Semi-dry process In the semi-dry process, the raw meal is pretreated as in the dry process. In an inclined rotating dish or drum, the raw mea l is made into nodules of around 15 mm spheres, with moisture content of around 12 per cent. The nodules are then fed into a moving grate, where partial drying, pre-heating and partial de-carbonation ta es place prior to the iln stage. The subsequent treatment is similar to that in the dry process. Cement grinding C ement is produced by grinding cooled clin er with gypsum (hydrated calcium sulph ate). Either naturally available gypsum or chemically manufactured gypsum is use d. Gypsum is added to regulate the setting time of cement. The clin er is ground in a ball mill, which is a tubular mill partly filled with steel balls. Vertic al roller mills (VRM) have provided a brea through in the area of grinding. The VRM draws 20-30 per cent less electricity compared to ball mill system, apart fr om its higher drying capacity. Another brea through that has come in the cemen

t industry is the application of the high pressure grinding rolls (HPGR). HPGR h as been widely used in the Indian cement industry for upgrading the existing bal l mill systems. There are two basic cement grinding systems - open circuit and c losed circuit - which are used in HPGR. The open circuit system is found in old cement plants and mini cement plants. In this system, the material is not re- ci rculated after passing through the grinding mill. The mill diameter is up to 2.5 metres, with a L/D ratio of around 5.5. Modern cement plants employ the close d circuit system. In this system, the material from the grinding mill is ta en t o an air separator or a classifier; here it is separated, based on the particle size into a fine product stream and a coarse reject stream. The coarse reject str rned to the grinding mill for re-grinding. The mill diameter is up to 4.5 metres , with a L/D ratio of around 3. The coarse reject stream is re-circulated at a r ate similar to that of the clin er feed. The closed circuit grinding system is more efficient than the open circuit system on account of the re-circulation of the coarse reject feed (resulting in lower wastage) and lower power consumption (especially for higher compression cements). However, for OPC-33, there is no si gnificant energy saving, since power is required to operate the air separator an d ancillary equipments, such as elevators. The overall power consumption is 35-4 0 Wh per tonne of cement for both open and closed circuit grinding systems. In the case of cement with higher compression strength such as rapid hardening ceme nt (400 g per cm2), OPC-43 and OPC-53 grades, 3-5 per cent of energy is saved a s compared with the open circuit grinding system where the energy consumption is 55 Wh per tonne. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-25 The following chart illustrates the cement manufacturing process, right from r aw material quarrying up to the bagging of the cement. Chart 1: Manufacturing p rocess of mini-cement plants Stoc piles Primary crusher Screen Secondary crusher Pre-blending hall Vertical roller mill Homogenisation siloRawmaterial silos Ele ctrostatic precipitator Preheater tower Stac Waste fuels/ Solvents Tires ALTERN ATIVE FUES Coal silo Filter Stac COAL MILL Rotary iln Cliner cooler Clin er st orage Gypson silo Additives silo Finish mill Finished cement silo Load-out/ Pac aging Source: CRISIL Research B-26 CRISIL RESEARCH CEMENT ANNUAL REVIEW Manu facturing process of mini-cement plants In India, most mini-cement plants use th e vertical shaft iln (VSK) technology, which is different from the technology u sed by the large cement plants. The VSK technology uses the semi-dry process, wh ich involves: Crushing of limestone and other raw materials to a size of up to 12 mm. Proportioning of the raw material and fuel (in general, co e breeze) based on the raw meal composition. Preparing nodules by adding water to the raw meal in a p an-type noduliser. Feeding the nodules to the vertical shaft iln. In the iln, th e nodules are dried, calcined, sintered and coo ed as the nodules travel down th e iln and get converted to clin er. Grinding the clin er and gypsum in a grinding mill to obtain ordinary portland cement. Use of alternate fuels The cement ind ustry is thermal energy intensive. The average heat generated during the process is 3,200-3,300 ilo joules per g. Burning fossil fuels, such as pulverised coa l/oil in the rotary iln, generates high-grade heat. However, as these fuels are becoming progressively expensive and difficult to procure, there is an increasi ng need for alternate fuels for ilns. However, alternate fuels li e agro wastes , waste oils, animal meal and rice hus are being tested, and on the basis of th e method used for manufacturing, costs effectiveness, availability will be seen and subsequently implemented. Usage of fly ash and slag in blended cement In th e last few years, blended cement has increased in popularity over OPC due to adv antages such as increased production, low cost of production and less pressure o n natural minerals li e limestone. Further, all concerns regarding the quality a nd properties of blended cement have been eroded as it is being accepted all acr oss India. This increased acceptance is a positive sign for the cement industry as they can produce more cement with the current capacity by increasing their bl ending ratio. Typically, there are two types of blending materials that are used by the cement industry: Fly ash Fly ash is a finely divided residue resul ting from the combustion of pulverised bituminous coal or sub-bituminous lignite

in thermal power plants, which consists of inorganic mineral constituents of co al and organic matter that are not fully burnt. It is generally grey in colour a nd refractory in nature. Owing to its pozzolanic properties, fly ash can be mixed with clin er to form portland pozzolana cement (PPC). When fly ash is added to cement it improves its strength, durability and reduces emission of car bon dioxide but there is a limit to which cement manufacturers can use fly ash p er tonne of cement as properties of cement starts changing beyond a level. This limit has been defined by the BIS as 35 per cent. CRISIL RESEARC H CEMENT ANNUAL REVIEW B-27 Slag After fly ash, slag produce d as a waste material by steel plants - is the next best option for blending mat erial. Slag is a non-metallic product consisting essentially of glass containing silicates of lime and other bases, and is obtained as a by product in the manuf acture of pig iron in blast furnace and electric furnace. Granulated slag is use d in the manufacture of portland slag cement (PSC). Slag cement can be used for all plain and reinforced concrete constructions, mass concreting structures such as dams, reservoirs, swimming pools, river emban ments and bridge piers amongst others. It is beneficial where low heat of hydration and resistance to al ali-s ilica reaction are required for structures in harsh environments where chemical and mildly acidic waters are encountered (where the use of OPC is not recommende d), for marine constructions, dy es and wharves where there is sulphatic water. In short, PSC can be used wherever OPC is used. Slag adds strength and durabili ty to concrete. Slag cement also improves concrete s plastic properties such as wor ability and finish. From an environmental perspective, its use in concrete ma es concrete greener; not only is it a recycled material, but, for each cubic yard of concrete in which it replaces portland cement, slag cement significantly redu ces energy consumption and greenhouse gases emitted in the production of concret e raw materials. The upper limit specified by the BIS in case of slag cement is 55 per cent. Although the cement industry has largely tried to be energy effi cient industry, there still exists the need for improvement. The cement industry should loo at the ways of appropriate pre-blending facilities for raw material s and energy efficient equipments for the auxiliary/minor operations. They shoul d also loo at building bul loading and transportation facilities as well as ad vance computerised iln control systems. This page i s intentionally left blan CRISIL RESEARCH CEMENT ANNUAL REVIEW B-29 Cement, being a high-volume, low-value commodity, cannot be transp orted over long distances thus ma ing the industry regional in nature. The deman d-supply situation in the Indian cement industry varies from region to region there could be a surplus scenario in one whereas a deficit scenario could exist in another. Also, some regions have the advantage of exporting cement. Therefore , the dynamics vary between regions, and hence it is important to understand the regional dynamics in order to have a comprehensive understanding of the country s cement industry. North States included: Uttara hand, Delhi, Haryana, Himacha l Pradesh, Jammu & Kashmir, Punjab, Chandigarh and Rajasthan. The demand for ce ment in the northern region increased at a CAGR 19.3 per cent from 2003-04 to 20 07-08. Hence, clin er production (from which cement is derived) rose at a CAGR o f 6.7 per cent during the period under consideration. In line with this, capacit y grew at a CAGR of 4.7 per cent, leading to high utilisation rates. This transl ated to an increase in prices across the region. Table 1: North Capacity/ pr oduction/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08 Clin er capacity 22.123.023.824.426.6 Clin er production 20.721.923.023.326.8 Capacit y utilisation 94%95%96%95%100% Source: CMA, CRISIL Research Key mar ets an d players: The ey mar ets in the northern region are Rajasthan, Punjab and Hary ana. Rajasthan is the highest consumption state in the North at around 16.2 mill ion tonnes in 2007-08. The high demand is due to the increase in road constructi on i.e. projects li e concretisation and inter-lin ing village roads as well as

demand from commercial malls and housing. Figure 1: North Mar et share (200708) (per cent) ACC 17 Grasim 12 Gujarat Ambuja 13 JK Synthetics 7 Shree Cement 1 3 Birla Corp 7 Others 31 Source: CRISIL Research 4.0 Region-wise scenario B-30 CRISIL RESEARCH CEMENT ANNUAL REVIEW Top players: Top players in the northern region are ACC, Gujarat Ambuja Cement Ltd (GACL), Grasim, Shree Cement, Birla Co rporation Ltd and JK Synthetics Ltd. These players account for over 70 per cent share of the north Indian mar et, thus ma ing the region reasonably consolidated . Figure 2: North Domestic mar et prices 60 80 100 120 140 160 180 Apr-01 Jul-01 Nov-01 Feb-02 May-02 Sep-02 Jan-03 Apr-03 Aug-03 Nov-03 Feb-04 Jun-04 Sep -04 Jan-05 Apr-05 Aug-05 Nov-05 Mar-06 Jun-06 Sep-06 Jan-07 Apr-07 Aug-07 Nov-07 Mar-08 Delhi Bhatinda Note: Prices are indexed to 2001. Source: CMA Demand dri vers: The demand in the northern region has been driven by construction of roads in several states, the hydel projects in Himachal Pradesh and setting up of com mercial complexes in and around the NCR region. Delhi had been witnessing demand from the metro rail project and infrastructure preparations for the 2009 Common wealth Games. States li e Punjab and Haryana have registered increase in housing demand along with higher government spending on infrastructure facilities in or der to attract industrial investments. Cities li e Chandigarh, Jaipur, Gurgaon a nd Noida have been witnessing large scale residential as well as commercial cons truction. South States included: Andhra Pradesh, Karnata a, Kerala, Tamil Nadu, Andaman & Nicobar Islands, Goa, and Pondicherry. The South has large cement ca pacities in India due to the vast amounts of limestone reserves available in the region. Demand for cement in the region has grown at a rapid pace of 11.4 per c ent between 2003-04 to 2007-08.. On the production front, clin er production inc reased at a CAGR of 8.9 per cent during the same period under consideration, whi le capacities rose by mere 3.8 per cent, thus leading to a surge in operating ra tes, which went up from 78.0 per cent in 2003-04 to 95.0 per cent in 2007-08. Th e strong growth in demand resulted in an increase in prices from Rs 141 per bag of 50 gs in 2003-04 to Rs 242 per bag of 50 gs in 2007-08. Table 2: South Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 20 06-07 2007-08 Clin er capacity 41.442.944.445.748.1 Clin er production 32.533.33 8.041.545.7 Capacity utilisation 79%78%86%91%95% Source: CMA, CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW B-31 Key mar ets: T amil Nadu, Andhra Pradesh and Karnata a have been the ey mar ets in the souther n region. In 2007-08, there was thrust on infrastructure and housing, amongst ot hers, that led to a modest cement demand growth of 10.6 per cent (y-o-y) in 2007 -08. Amongst various states in the southern region, Andhra Pradesh registered th e highest growth in demand i.e. 17 per cent (y-o-y) on account of various infra structure projects underta en by the government and private sector. Top pl ayers: The top five players in the South are India Cements, Grasim-UltraTech, Ma dras Cements, ACC and Chettinad Cement. India Cements enjoys the largest mar et share. However, following Grasims acquisition of L&Ts cement plants (now named a s UltraTech), both companies are fighting for the numero uno position. The graph below gives the mar et share of all the major players in southern India. Figur e 3: South Mar et share (2007-08) (per cent) Others 42 Grasim 8 ACC 8 Madras Ce ments 11 Chettinad Cement 6 UltraTech 8 India Cements 17 Source: CRISIL Research Figure 4: South Domestic mar et prices 60 80 100 120 140 160 180 Apr-01 J ul-01 Nov-01 Feb-02 May-02 Sep-02 Jan-03 Apr-03 Aug-03 Nov-03 Feb-04 Jun-04 Sep04 Jan-05 Apr-05 Aug-05 Nov-05 Mar-06 Jun-06 Sep-06 Jan-07 Apr-07 Aug-07 Nov-07 Mar-08 Bangalore Chennai Hyderabad Note: Prices are indexed to 2001. Source: CMA Demand drivers: Real estate development has augmented cement demand in the sou thern region. Infrastructure projects li e irrigation in Andhra Pradesh along wi th the upcoming international airport in Chennai and other projects li e the Ban galore Metro Rail are expected to contribute towards the strong demand. B-32 CRISIL RESEARCH CEMENT ANNUAL REVIEW East States included: Assam, Bihar, Chattisgarh, Jhar and, Meghalaya, Orissa, Si im and West Bengal The eastern r egion is primarily an industrial belt due to abundant mineral reserves. Demand i n the region is primarily on account of industrial activities that are not cemen

t intensive, thus translating to low cement demand. However, demand pic ed up in 2004-05, mainly due to the increase in housing and commercial construction (IT and ITES projects) activities in West Bengal. Hence, the utilisation rates in th is region, which were around 75 per cent during the last 5 years, are the lowest on a pan-India basis. Table 3: East Capacity/ production/ operating rate mn t onnes 2003-04 2004-05 2005-06 2006-07 2007-08 Clin er capacity 14.315.216.116.81 7.7 Clin er production 10.911.712.512.813.2 Capacity utilisation 76%77%78%76%75% Source: CMA, CRISIL Research Key mar ets: The high consumption states are West Bengal, Orissa and Bihar. Demand growth in West Bengal has been around 6 pe r cent CAGR (2003-04 to 2007-08) whereas Chattisgarh - a natural resource rich s tate - rose at a CAGR of around 28 per cent during the same period. The largest supplier of cement is Chattisgarh while the largest consumer is West Bengal. Ho wever, the central region also meets some of eastern regions demand. In 2007-08, the production in Chattisgarh was 9.8 million tonnes while consumption was 3.8 million tonnes, whereas in West Bengal, the production was around 3.5 million to nnes and consumption around 7.2 million tonnes. Top players: The French player , Lafarge enjoys the largest mar et share in the region followed by ACC. The oth er players are Century Textiles and UltraTech. The eastern region enjoys the hig hest level of consolidation in the country with the top five players accounting for close to 70 per cent of the mar et share. Figure 5: East Mar et share (200 7-08) (per cent) Others 25 UltraTech 13 Lafarge 19 Gujarat Ambuja 9 ACC 17 Centu ry Textiles 10 Grasim 7 Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUA L REVIEW B-33 Figure 6: East Domestic mar et prices 60 8 0 100 120 140 160 180 Apr-01 Jul-01 Nov-01 Feb-02 May-02 Sep-02 Jan-03 Apr-03 Au g-03 Nov-03 Feb-04 Jun-04 Sep-04 Jan-05 Apr-05 Aug-05 Nov-05 Mar-06 Jun-06 Sep-0 6 Jan-07 Apr-07 Aug-07 Nov-07 Mar-08 Kol ata Patna Note: Prices are indexed to 2 001. Source: CMA Demand drivers: West Bengal has been witnessing increasing hou sing demand along with commercial complexes (IT and ITeS projects) followed by J har and and Orissa, which are witnessing increased industrial and infrastructura l projects along with the canal lining project and other small industrial projec ts in Chattisgarh. West States included: Maharashtra and Gujarat The demand f or cement in the western region increased at a CAGR 9.4 per cent during the last 5 years. However, due to a higher base, clin er production rose marginally at a CAGR of 1.2 per cent from 2003-04 to 2007-08, and capacity additions at a CAGR of 0.9 per cent. This resulted in operating rates hovering above 90 per cent in the last 5 years, indicating strong demand in the region. Table 4: West Capa city/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 200708 Clin er capacity 23.824.0 24.324.424.7 Clin er production 22.223.0 23.024.023 .3 Capacity utilisation 94%96% 95%98%95% Source: CMA, CRISIL Research Key m ar ets: Maharashtra, which is the highest consuming state (around 13 per cent of the total domestic demand in 2007-08) in the country, has registered a demand g rowth of 8.8 per cent (CAGR) in the last 5 years, whereas the demand growth in G ujarat was higher at a CAGR of 10.5 per cent during the same time period. Top p layers: Both, the Grasim-UltraTech group and ACC-GACL group, have a presence in the western mar et, with mar et share of 31 and 29 per cent, respectively. Other ey players in region are Kesoram Industries, Orient Cement and Sanghi Industri es. The mar et share of the major players is shown in the graph below. B-3 4 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 7: West Mar et share (2007-08) O thers 29 Kesoram Inds 7 ACC 8 Grasim 9 Gujarat Ambuja 20 UltraTech 22 Sanghi Ind ustries Ltd 5 (per cent) Source: CRISIL Research The western region has the adv antage of exporting excess quantity of cement to regions li e the Middle East, w hich is witnessing strong growth rates due to the construction boom. However, in April 2008, to reign in rising domestic cement prices, the government banned ce ment exports indefinitely which was revo ed in June 2008. Figure 8: West Domes tic mar et prices 0 20 40 60 80 100 120 140 160 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Ahmedabad Mumbai Note: Prices are indexed to 2001. Source: CMA Demand drivers: The wester n region has been experiencing robust commercial (complexes and shopping malls)

and housing demand. Cities li e Pune are becoming hubs for IT and ITES par s, an d commercial complexes. Ahmedabad has also been witnessing an increase in invest ments, which is creating strong demand for cement. CRISIL RESEARCH CEME NT ANNUAL REVIEW B-35 Central region States included: Uttar P radesh and Madhya Pradesh Madhya Pradesh (MP) has large limestone deposits in t he Satna cluster. The demand for cement has increased at a CAGR of 7.7 per cent from 2003-04 to 2007-08. Hence, clin er production rose at a CAGR of 5 per cent in the same period under consideration. There are no limestone reserves in Uttar Pradesh (UP). But being one of the largest mar ets, players have set up grindin g units in the state as companies prefer to have grinding units close to consump tion centres. Table 5: Central Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08 Clin er capacity 16.8 17.919.019.820.2 C lin er production 16.3 17.318.719.119.9 Capacity Utilisation 97% 97%98%96%98% So urce: CMA, CRISIL Research Key mar ets: UP is the second largest consuming state in the country - around 9 per cent of the total domestic consumption. The consumption in the state has increased at a CAGR of 5 per cent during the last 5 years. Apart from catering to the states own requirement, MP dispatches signifi cant quantities of cement to UP and Bihar. Top players: Jaipra ash Industries i s the largest player in the region with the mar et share of over 19 per cent fol lowed by ACC with a mar et share of 17 per cent. Other prominent players in the region are Century, Grasim and Prism Cement. The top five players in the industr y account for more than 65 per cent of the total mar et share. Figure 9: Cen tral Mar et share (2007-08) (per cent) Others 34 Prism Cement 9 Jaipra ash Inds 19 ACC 18 Grasim 10Century Textiles 10 Source: CRISIL Research B-36 CRI SIL RESEARCH CEMENT ANNUAL REVIEW Figure 10: Central Domestic mar et prices 0 20 40 60 80 100 120 140 160 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Luc now Bhopal Note: Prices ar e indexed to 2001. Source: CMA Demand drivers: The demand in the region is prim arily derived from various infrastructure projects being implemented in UP and u rban housing in MP. CRISIL RESEARCH CEMENT ANNUAL R EVIEW B-37 Associated Cement Companies Ltd Bac ground Ass ociated Cement Companies Ltd (ACC) was formed in 1936 by amalgamating 10 cement companies promoted by Tata, Khatau, Dinshaw and Kellic . A new association was f orged between ACC and the Holcim group of Switzerland in 2005. In 2005, Holcim a nd Gujarat Ambuja entered into a strategic alliance to acquire a 34.17 per cent sta e in ACC through Ambuja Cement India Ltd. The current promoter Ambuja Cement India Ltd, through a strategic partnership with Gujarat Ambuja Cement Ltd and H olcim, holds around 43 per cent of the company s equity while institutional investor s have around 36 per cent, and individuals hold around 21 per cent. ACCs core business is cement with a prime focus on RMC. It also provides consultancy servi ces, plant erection and plant management contracts. ACC has also extended its se rvices overseas to the Middle East, Africa and South America, where it has provi ded technical and managerial consultancy to a number of consumers, and also help s in the operation and maintenance of cement plants. ACC s operations are spread thr oughout the country with 14 modern cement factories. The company also has a subs idiary called as ACC Concrete Ltd, which has 16 modern RMC plants across India. It sells cement under the brand names ACC Super, ACC Sure sha, ACC Sura hya and ACC Samrat amongst others. The shareholding pattern as on December 31, 2007 is given below: Table 1: ACC As of December 31, 2007 Category % of total shares Promoters holding (Holcim Group) 43.0 Institutions 36.2 Mutual funds/UTI 3.1 Ban s, FI s, insurance cos and governments 18.0 Foreign institutional inves tors 15.1 Others 20.8 Total equity holding 136 Source: Company ACC has a pan-In dia presence (14 plants) and ran s among the top players across all regions. Its growth has been chiefly organic, and to a lesser extent, through brownfield cap acity additions. In 2005, the company merged two of its subsidiaries, DCSL and B argah Cement with itself. ACCs capacity was around 18.25 million tonnes as on Ma

rch 2007-08. The company has a healthy operating rate of over 90 per cent for la st 3 years, indicating strong demand. 5.0 Player profile B-38 CRISIL RESEA RCH CEMENT ANNUAL REVIEW Figure 1: ACC Proportion of consumption by various st ates (2006-07) Figure 2: ACC Mar et share and ran (2006-07) (per cent) Punja b 11Karnata a 10 Uttar Pradesh 17 Maharashtra 13 Others 49 0 5 10 15 20 25 30 35 UPMahPunjabKarnata a per cent of mar et share 0 1 2 3 4 5 Ran M t share Ran S ource: CMA Source: CMA The companys despatches have been increasing at 3 p er cent (CAGR) over the last 4 years i.e. 2002-03 to 2006- 07. ACCs pan-India pr esence helps it mitigate ris s that might arise due to slowdown in a particular region. Around 51 per cent consumption in 2006-07 was covered by four states, na mely UP (17 per cent), Maharashtra (14 per cent), Punjab (11 per cent) and Karna ta a (9 per cent). The companys mar et share in these states are; UP 19.7 per c ent, Maharashtra 14 per cent, Punjab 30.9 per cent and Karnata a 16.1 per ce nt. Even though ACC is one of the oldest and largest producers of cement i n India, it lagged its peers in operating efficiency until a few years ago. Raw materials and power account for the largest chun of costs. The company has trie d to ma e their cost structure favourable by opting for captive power plants and going in for higher level of blending thus enhancing profitability. Figure 3: ACC Brea up as a per cent of sales (Mar-02) Figure 4: ACC Brea -up as a per cent of sales (Dec-07) (per cent) Power and Fuel 22 Materials Costs 27 Operating Margins 15Selling Exps 18 Employee Costs 7 Other Manufacturing Exps 6 Other Exp s 5 (per cent) Other Exps 22 Selling Exps 13 Other Manufacturing Exps 0 Employee Costs 5 Power and Fuel 17 Materials Costs 13Operating Margins 30 Source: CMA Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-3 9 Table 2: ACC Key financial indicators 31-Dec-05 31-Dec-06 31-Dec-07 Oper ating income Rs million 32,035 57,678 70,750 Operat ing margins per cent 17.8 29.5 33.0 Net profits Rs million 5,337 12,369 14,273 Net margins per cent 16.7 21.4 20.2 RoCE (return on average capital employed) per cent 28.9 43.4 52.4 Gearing times 0.50 0.25 0.25 Net cash accruals to debt times 0.67 1.53 - Interest coverage times 8.2 24.0 27.1 Current ratio times 1.01 1.19 1.09 Note: The f igures for December 31, 2005 are for 9 months i.e. from April 2005 to December 2 005, owing to changes in the year end. Source: Annual reports, CRISIL Research The companys operating margins improved from 29.5 per cent in 2005-06 to 33.0 p er cent in 2006-07 due to the improvement in realisations. Other ey parameters li e operating margins, gearing, and interest coverage have registered healthy g rowth rates, indicating a good credit profile. The company is expected to post healthy growth in revenues in the medium term led by volume growth on the bac of a rise in demand from end-user segments li e housing and infrastructure. Also , its multi-location advantage will help offset any slowdown that may arise in a particular region. Ambuja Cements Ltd Bac ground Ambuja Cements Ltd, the fla gship company of the Ambuja Group, was set up in 1986. Switzerland-base Holcim h olds the largest share (16.5 per cent) in the company. The company recently amal gamated Ambuja Cement Eastern Ltd with itself (w.e.f January 2006) thus consolid ating its presence in other parts of the country as well. The company also holds marginal sta e in ACC through Ambuja Cement India Ltd (ACIL). (ACL holds a 22 per cent sta e in ACIL, its joint venture with Holcim, which in turn holds a 42. 97 per cent sta e in ACC.) Its subsidiaries are Cement Ambuja International Ltd, Ceylon Ambuja Cements Pvt Ltd and Indo Nippon Special Cements Ltd. The company sells its cement under the Ambuja Cement brand. The shareholding pattern as on December 31, 2007 is given below: Table 3: GACL As of December 31, 2007 Categ ory % of total shares Promoters holding (Holcim Group) 46.5 Institutions 37.6 Mutual funds/UTI 0.6 FIs, ban s, insurance companies and government 13.5 Foreign institutional investors 23.5 Others 16.0 Total equity holding 100 Sou rce: Company B-40 CRISIL RESEARCH CEMENT ANNUAL REVIEW It has 12 cement plant

s out of which six are grinding units. As on December 2007, GACLs capacity stood at 15.3 million tonnes per annum. The company has been operating at a healthy r ate of above 90 per cent for the last 3 years. GACL has been witnessing a heal thy growth rate in its despatches, which is rising by 8.49 per cent (CAGR) for l ast 4 years. Around 50 per cent despatches are covered by 3 states i.e. Gujarat (14.11 per cent), Maharashtra (25.75 per cent) and Punjab (11.18 per cent). The mar et share of GACL in these states is: Gujarat 19.72 per cent, Maharashtra 1 9.7 per cent and Punjab 28.69 per cent. Figure 5: GACL Proportion of consumpt ion by various states (2006-07) Figure 6: GACL M t share and ran (2006-07) ( per cent) Others 49 Punjab 11 Maharashtra 24 Gujarat 14 0 5 10 15 20 25 30 35 Ma harashtraGujaratPunjab per cent of mar et share 0 1 2 3 Ran M t share Ran Sour ce: CMA Source: CMA The company is considered to be one of the least cost producers of cement in the world. Its drive for cost leadership has been powered by various productivity improvements and cost-cutting measures. For GACL, the l argest cost is power followed by raw materials. Figure 7: GACL Brea -up as a per cent of sales (Jun-02) Figure 8: GACL Brea -up as a per cent of sales (Dec07) (per cent) Other manufacturing exps 2 Employee costs 4 Power and fuel 23 Oth er exps 4 Selling exps & freight 14 Operating margins 33 Materials costs 20 (per cent) Operating margins 34 Materials costs 18 Power and fuel 20 Employee costs 4 Other manufacturing exps 2 Other exps 3 Selling exps & freight 19 Source: CMA Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-41 Table 4: GACL Key financial indicators 30-Jun-05 31-Dec-06 31-Dec-07 Opera ting income Rs million 26,133.4 62,667.2 63,717.8 Operating margins per cent 28.8 35.2 44.6 Net profits Rs million 4,654.5 15,032.5 17,691.1 Net margins per cent 17.8 24.0 31.4 RoCE (return on average capital employed) per cent 15.7 31.3 - Gearing times 0.52 0. 25 0.2 Net cash accruals to debt times 0.40 1 .01 - Interest coverage times 12.85 17.76 34.9 Cur rent ratio times 1.06 1.53 1.3 Source: Annual reports, CRISIL Research The operating margins have improved due to increased sales and higher realisations. The company is also maintaining healthy gearing, interest coverage and other ratios, indicating an improved credit profile. It is expected to benefit from the strong demand prevalent in the end-user segments domestically while exports are expected to remain healthy, as it will ta e some time for capacities to come on-stream in the Middle East. UltraTech Cement Ltd Bac ground UltraTech Cement Ltd (UCL) was incorporated in 2000 as L&T Cement Lt d. In 2004, Grasim Industries Ltd acquired management control and named it Ultra Tech Cement Ltd. It is now a subsidiary of Grasim Ltd. The company sells cement under the brand name UltraTech Cement and Narmada Cement amongst others. The s hareholding pattern as on December 31, 2007 is given below: Table 5: UltraTech Cement Ltd As of December 31, 2007 Category % of total shares Promoters holding (Aditya Birla Group) 54.09 Institutions 16.66 Mutual funds/UTI 1.77 FIs , ban s, insurance companies and government 6.88 Foreign institutional inves tors 8.01 Others 29.24 Total equity holding 100 Source: Company As on March 200 7, the company had a capacity of around 17 million tonnes per annum with 10 plan ts operating in Maharashtra, Gujarat, Andhra Pradesh, Chhattisgarh and Tamil Nad u. UCLs diversified presence allows it to cater to various states, primarily M aharashtra, Gujarat, Andhra and Karnata a. Though it mostly caters to the West a nd South, it does have a presence in the East as well. Around 54 per cent consum ption in 2006-07 was covered by three states - Gujarat 16.61 per cent, Karnata a 9.97 per cent and Maharashtra 27.92 per cent. B-42 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 9: UltraTech Cement Ltd Proportion of consumption by vari ous states (2006-07) Figure 10: UltraTech Cement Ltd Mar et share & ran (200607) (per cent) Others 45 Mah 28 Karnata a 10 Gujarat 17 0 5 10 15 20 25 GujaratK arnata aMah Ran 0 1 2 3 4 Mar et share Ran per cent of mar et share Source: CM A Source: CMA Figure 11: UltraTech Cement Ltd Brea -up as a per cent of s ales (Mar-04) Figure 12: UltraTech Cement Ltd Brea -up as a per cent of sales (

Mar-07) (per cent) Other manufacturing exps 4 Employee costs 3 Selling exps & fr eight 21 Materials costs 24 Operating margins 14 Other exps 6 Power and fuel 28 (per cent) Operating margins 30 Selling exps & freight 23 Other exps 2 Other man ufacturing exps 2 Employee costs 2 Materials costs 18 Power and fuel 23 Source: CMA Source: CMA Power and fuel and material costs constitute the largest c omponent of input cost for UCL, accounting for around 23 per cent and 18 per cen t of net sales, respectively. The third largest cost component is selling cost, which accounts for around 23 per cent of net sales. CRISIL RESEARCH CEMENT ANNUAL REVIEW B-43 Table 6: UltraTech Cement Ltd Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07 Operating income Rs milli on 26,918 33,152 49,360 Operating margins per cent 13.5 17.1 29.3 Net profits Rs million 29 2,298 7,823 Net margins per cent 0.1 6.9 15.9 RoCE (return on average cap ital employed) per cent 2.3 12.0 35.8 Gearing times 1.44 1.40 0.90 Net cash accruals to debt times 0.1 0.3 0. 6 Interest coverage times 3.5 6.5 1 7.6 Current ratio times 1.00 1.43 1.48 Source: Annual reports, CRISIL Research The companys operating margins improved to 29.3 per cent in 2006-07 from 17.1 per cent in 2005-06, owing to volume grow th coupled with higher realisations. Net margins have also increased from 6.9 pe r cent in 2005-06 to 15.9 per cent in 2006-07. In addition, RoCE as well as the interest coverage improved significantly over the previous year, indicating an i mproved credit profile for the company. Grasim Industries Ltd Bac ground Grasim Industries Ltd is the flagship company of the Aditya Birla Group. Starting as a textiles manufacturer in 1948, Grasim ventured into cement production in the mi d-1980s, setting up its first cement plant at Jawad, Madhya Pradesh. Since then it has grown to become a ey cement player in the country. In July 2004, Grasim acquired a majority sta e and management control in UCL, the de-merged cement bu siness of Larsen & Toubro (L&T). One of the largest of its ind in the cement se ctor, this acquisition catapulted the Aditya Birla Group to the top of the cemen t league in India. The group s combined capacity stands raised to 31 million tpa, of which 17 million tpa comes from UCL. Currently, Grasim s cement operations span acr oss the country, with 11 integrated plants, seven split grinding units, four bul terminals and 10 RMC plants. Branded as Birla White, the division manufactures white cement in a variety of textures and finishes. The shareholding pattern a s on December 31, 2007 is given below: Table 7: Grasim India Ltd As of Decembe r 31, 2007 Category % of total shares Promoters holding (Aditya Birla Group) 25. 2 Institutions 43.2 Mutual funds/UTI 10.2 FIs, ban s, insurance companie s and government 10.7 Foreign institutional investors 22.4 Others 31.6 Total equity holding 100 Source: Company The companys total cement capacity was arou nd 14.32 million tpa as on March 2007 with production at 15.32 million tonnes. I ts operating rate, which has been rising steadily, was at 106 per cent in 2006-0 7. B-44 CRISIL RESEARCH CEMENT ANNUAL REVIEW While it caters to almost all r egions, the three main states are Maharashtra (15 per cent), Karnata a (13 per c ent) and Rajasthan (10 per cent). These are major consuming states for Grasim an d account for 38 per cent of total despatches. Figure 13: Grasim India Ltd Pr oportion of consumption of varoius states Figure 14: Grasim India Ltd Mar et sh are & ran (2005-06) (per cent) Others 62 Rajasthan 10 Karnata a 13 Maharashtra 15 0 2 4 6 8 10 12 14 16 18 20 MahKarnata aRajasthan per cent of mar et share 0 1 2 3 4 Ran Mar et share Ran Source: CMA Source: CMA Figure 15: Grasim I ndia Ltd Input costs as per cent of cost of sales (2001-02) Figure 16: Grasim I ndia Ltd Input costs as per cent of cost of sales (2006-07) (per cent) Other ex penses 4 Selling expenses & freight 18 Other manufacturing expenses 3 Employee c osts 9 Power and fuel 21 Material costs 45 (per cent) Selling expenses & freight 20Other expenses 3 Other manufacturing expenses 2 Employee costs 8 Power and fu el 19 Material costs 48 Source: CMA Source: CMA Table 8: Segment revenue

Cement business (Rs million) 2005-06 2006-07 Revenue 42,37658,290 PBIT 6,36414,4 82 NPM (%) 15.024.8 RoCE (%) 17.324.7 Source: Company annual reports CRISI L RESEARCH CEMENT ANNUAL REVIEW B-45 Table 9: Grasim India Lt d Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07 Operating income R s million 62,289 66,759 86,597 Operating margins per cent 26.2 21.6 28.0 Net profits Rs million 8 ,857 8,632 15,358 Net margins per cent 14.2 12.9 17.7 RoCE (return on average capital employed) per cent 21.9 18.1 27.1 Gearing times 0.5 0.4 0.5 Net cash accruals to debt times 0.50 0.48 0.53 Interest coverage times 12.1 15 .0 23.0 Current ratio times 1.36 1.38 1.58 Source: Annual reports, CRISIL Research For Grasim, 2006-07 was a good year in terms of cement as well as consolidated business growth. Around 67.0 per cent of the total operating income came from the cement business. The operating income grew by 28.0 per cent in 2006-07 as against the 21.6 per cent in the 200 5-06. During the year, the net profit margins registered a growth of 16.0 per ce nt and 17.7 per cent in cement and consolidated basis, respectively. Other ey r atios li e RoCE and interest coverage have registered healthy improvement as wel l. Jaipra ash Associates Ltd Bac ground Jaipra ash Associates Ltd (JAL), whic h was promoted in 1996, is a part of the Jaypee Group. It was formerly nown as Jaypee Cement Ltd with operations mainly in cement production. Presently b ased in Luc now, JAL has a presence in engineering, construction, cement and hos pitality businesses. Its cement business is progressing steadily via brands li e Buland. The company owns three cement plants at Rewa and Bela in Madhya Pradesh . JAL s cement mar et is limited to UP and MP. Its clientele includes National Therm al Power Corporation, Indian Railways and Gas Authority of India Ltd amongst oth ers. The shareholding pattern as on December 31, 2007 is given below: Table 10: Jaipra ash Associates Ltd As of December 31, 2007 Category % of total shar es Promoters holding (Jaypee Group) 45.0 Institutions 37.0 Mutual funds/UTI 8.8 FIs, ban s, insurance companies and government 2.0 Foreign instituti onal investors 26.1 Others 18.1 Total equity holding 100 Source: Company The co mpanys total cement capacity was around 6.6 million tpa as on March 2007. It pro duced 7.1 million tonnes of cement in 2006-07, thus maintaining an operating rat e of above 100 per cent (The companys operating rate has been rising steadily ov er the last 3 years). B-46 CRISIL RESEARCH CEMENT ANNUAL REVIEW JAL caters ma inly to MP and UP. It is progressively entering Jammu & Kashmir and Uttaranchal. The main consumption centres for JAL are UP (51 per cent), MP (18 per cent) and Bihar (10 per cent). These account for 79 per cent of the companys total despat ches. Figure 17: Jaipra ash Associates Ltd Proportion of consumption by vario us states (2005-06) Figure 18: Jaipra ash Associates Ltd Mar et share & ran (2 005-06) (per cent) Others 21 Bihar 10 Madhya Pradesh 18 Uttar Pradesh 51 0 5 10 15 20 25 UPMPBihar per cent of mar et share 0 0.5 1 1.5 2 2.5 3 3.5 Ran Mar et Share Ran Source: CMA Source: CMA Figure 19: Jaipra ash Associates Ltd B rea -up as a per cent of sales (Mar-02) Figure 20: Jaipra ash Associates Ltd Br ea -up as a per cent of sales (Mar-07) (per cent) Operating margins 25 Employee costs 4 Other manufacturing expenses 55 Power and fuel 2Material costs 10 Sellin g expenses 0 Other expenses 4 (per cent) Material costs 21 Power and fuel 6 Empl oyee costs 4 Other manufacturing expenses 34 Other expenses 4 Selling expenses 9 Operating margins 22 Source: CMA Source: CMA Table 11: Segment revenue Cement business (Rs million) Mar 05 Mar 06 Mar-07 Revenue 9,669.511,941.418,4 62.2 PBIT 1,214.51,905.15,705.9 PBIT margins 12.61630.9 RoCE 4.239.34.81 Source: Company annual reports CRISIL RESEARCH CEMENT ANNUAL REVIEW B-47 Table 12: Jaipra ash Associates Ltd Key financial indicators 31-Ma r-05 31-Mar-06 31-Mar-07 Operating income Rs million 28,703 32,011 36,740 Operating margins per cent 24.0 23.1

29.1 Net profits Rs million 2,226 6,306 4,150 Ne t margins per cent 7.8 19.7 11.6 RoCE (return on average capital employed) per cent 14.8 18.1 12.9 Gearing times 2.6 1.9 3.1 Net cash accruals to debt times 0.10 0.17 - Interest coverage tim es 2.8 2.8 3.5 Current ratio times 1.53 2.31 2.21 Source: Annual reports, CRISIL Researc h Key parameters of the cement division showed significant improvement in 2006 -07. The share of cement business in total operating income stood at around 50 p er cent of the overall business. Consolidated operating margins have grown from 23.1 per cent in 2005-06 to over 29.1 per cent in 2006-07. Even though there was improvement in other ey parameters li e gearing and RoCE, thus indicating impr oved credit profile, net margins declined from 19.7 per cent in 2005-06 to 11.6 per cent in 2006-07. India Cements Ltd Bac ground India Cements Ltd (ICL), w hich is part of the India Cement Group, began operations in 1946. The company is primarily in the cement business, operating in the southern region of India. The company suffered considerable losses in the past on account of depressed rea lisations and high interest costs, which arose from the substantial debt levels incurred from its aggressive acquisition strategy during 1997-2000. Huge losses and inability to pay off its creditors resulted in ICL resorting to debt restruc turing under the corporate debt restructuring scheme in 2005-06, following which its interest costs declined considerably. The companys strategy of pursuing i norganic growth by acquiring Rasi Cement and Visa a Cement has been favourable. The shareholding pattern as on December 31, 2007 is given below: Table 13: In dia Cements Ltd As of December 31, 2007 Category % of total shares Promoters ho lding (India Cements Ltd) 28.07 Institutions 50.88 Mutual funds/UTI 9.9 FIs, ban s, insurance companies and government 8.79 Foreign institutional in vestors 32.19 Others 21.06 Total equity holding 100 Source: Company B-48 CRIS IL RESEARCH CEMENT ANNUAL REVIEW As on March 2007, the companys total capacity from its seven plants was 8.8 million tpa - four plants are located in Andhra Pr adesh and the remaining three in Tamil Nadu. ICL caters mainly to the southern r egion (accounts for 89 per cent), where Andhra Pradesh and Tamil Nadu account fo r 55 per cent. The main consumption centres for ICL are Tamil Nadu (30 per cent) , Andhra Pradesh (25 per cent), Karnata a (18 per cent) and Kerela (16 per cent) . Figure 21: India Cements Ltd Proportion of consumption (2006-07) Figure 22: India Cements Ltd Mar et share & ran (2006-07) (per cent) Kerala 16 Andhra Pra desh 25 Tamil Nadu 30 Others 11 Karnata a 18 0 5 10 15 20 25 TNAPKeralaKarnata a per cent of mar et share 0 1 2 3 4 5 Ran Mar et share Ran Source: CMA So urce: CMA The company does not enjoy the margins of its peers due it its high p ower and fuel, employee and freight costs. In 2006-07, power and fuel costs and selling expenses constituted around 52 per cent of net sales. However, the compa ny is ta ing steps towards ma ing its cost structure favourable by increasing th e proportion of power through captive power plants. Figure 23: India Cements Ltd Brea -up as a per cent of sales (Mar-02) Figure 24: India Cements Ltd Brea -up as a per cent of sales (Mar-07) (per cent) Power and fuel 31 Emp costs 8 Ot her mfg exps 2 Other exps 4 Selling exps & freight 26 Op margins 16 Material cos ts 13 (per cent) Op margins 33 Selling exps & freight 23 Other exps 2 Other mfg exps 2 Emp costs 5 Power and fuel 24 Material costs 11 Source: CMA Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-49 Table 14: India Cements Ltd Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07 Op erating income Rs million 11,37015,31422,561 Operating margins per cent 11.0 17.1 32.6 Net profits Rs million -8751453,662 Net margins per cent -7.7 0.9 16.2 RoCE (return on average ca pital employed) per cent 2.1 7.8 19.3 Gearing times 6.1 1.9 1.5 Net cash accruals to debt times (0.00 ) 0.07 0.21 Interest coverage times 1.0 1.6 3.3 Current ratio times 0.62 0.87 1. 49 Source: Annual reports, CRISIL Research Its operating margins improved sign

ificantly from 17.1 per cent in 2005-06 to 32.6 per cent in 2006-07 on account o f increased volumes coupled with higher realisations. There was improvement in t he companys credit profile, which can be seen in RoCE, gearing and interest cove rage that have all registered significant improvement in 2006-07. Madras Cements Ltd Bac ground Madras Cements Ltd (MCL) was established in 1957. The co mpany, a part of the Ramco Group, is based at Rajapalayam, Tamil Nadu. It has a presence in South India, in particular, Kerala and Tamil Nadu. It is the fourth largest producer in southern India. Madras Cements has four cement plants, three of which are located in Tamil Nadu and one in Andhra Pradesh. The sharehold ing pattern as on December 31, 2007 is given below: Table 15: Madras Cement As of December 31, 2007 Category % of total shares Promoters holding 40.5 Institut ions 28.56 Mutual funds/UTI 8.3 FIs, ban s, insurance companies and gove rnment 14.17 Foreign institutional investors 6.09 Others 30.93 Total equity holding 100 Source: Company MCLs capacity in 2006-07 was 5.5 million tonnes. It caters mainly to the southern region, which accounts for 90 per cent of the com panys total despatches. B-50 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figur e 25: Madras Cement Proportion of consumption by various states (2005-06) Figu re 26: Madras Cement Mar et share & ran (2005-06) (per cent) Others 14 Andhra Pradesh 16 Kerala 25 Tamil Nadu 45 0 5 10 15 20 25 Tamil NaduKeralaAndhra Prades h per cent of mar et share 0 1 2 3 4 Ran Mar et share Ran Source: CMA Sou rce: CMA Power and fuel, and selling costs are the two major costs for the comp any, both of which have seen an increase thereby affecting MCLs cost structure. MCL has higher operating efficiency due to its low distribution costs and effici ent power and fuel consumption. Also, due to high competition in the south, the selling cost of the company has increased. But overall the company has healthy o perating efficiency. Figure 27: Madras Cement Brea -up as a per cent of sales (Mar-02) Figure 28: Madras Cement Brea -up as a per cent of sales (Mar-07) (pe r cent) Op margin 26 Material costs24 Power and fuel 24Emp costs 5 Selling exps & freight 17 Other exps 2 Other mfg exps 2 (per cent) Power and fuel 20 Other mf g exps 1 Emp costs 5 Selling exps & freight 16 Other exps 1 Op margin 36 Materia l costs 21 Source: CMA Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-51 Table 16: Madras Cement Key financial indicator 31-Mar-05 31-Mar-06 31-Mar-07 Operating income Rs million 7,302 9,991 15,656 Operating margins per cent 21.8 21.5 35.9 Net profits Rs million 559 790 3,080 Net margins per cent 7.7 7.9 1 9.7 RoCE (return on average capital employed) per cent 8.4 12.6 35.9 Gearing times 2.1 1.5 1.0 Net cash accruals to debt times 0.15 0.21 0.51 Interest coverage times 4.3 6.0 22 .2 Current ratio times 0.66 0.69 0.98 Source: A nnual reports, CRISIL Research The companys operating margins have jumped sign ificantly from 21.5 per cent in 2005-06 to 35.9 in 2006-07. Other ey ratios li e RoCE, gearing and interest coverage also improved substantially in 2006-07, in dicating better credit profile. Shree Cement Ltd Bac ground Shree Cement Ltd (SCL), which is part of the GD Bangur Group, began commercial production in 198 5. The companys cement plant is situated at Beawar and Ajmer in Rajasthan. Its c ement is mar eted under the brand name Shree Ultra Cement and sub-brand names li e Red Oxide Cement and Jung Rodha Cement. The shareholding pattern as on December 31, 2007 is given below: Table 17: Shree Cement As of December 31, 20 07 Category % of total shares Promoters holding 63.72 Institutions 14.43 Mut ual funds/UTI 5.83 FIs, ban s, insurance companies and government 1.3 Fo reign institutional investors 7.3 Others 21.85 Total equity holding 100 Source: Company The companys total capacity was around 4.5 million tonnes in 2006-07. I t mainly caters to the northern mar ets - Rajasthan (39 per cent), Haryana (22 p er cent) and Delhi (11 per cent), which together account for 72 per cent of tota l despatches. B-52 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 29: Shree Cement Proportion of consumption by various states (2006-07) Figure 30: Shree s

Cement Mar et share & ran (2006-07) (per cent) Others 28 Delhi 11 Haryana 22 R ajasthan 39 0 5 10 15 20 25 30 35 40 45 RajasthanHaryanaDelhi per cent of mar et share 0 1 2 3 4 Ran Mar et share Ran Source: CMA Source: CMA SCL is a l ow cost producer due to lower energy costs as the company relies entirely on pet co e for its energy requirement, which is a cheaper source as compared to coal. The company has also ta en adequate steps to ma e its cost structure favourable and competitive thus leading to higher profitability. Figure 31: Shree Cement Brea -up as a per cent of sales (Mar-02) Figure 32: Shree Cement Brea -up as a per cent of sales (Mar-07) (per cent) Op margins 24 Selling exps & freight 26 Other exps 2 Emp costs 4 Other mfg exps 1 Power and fuel 28 Material costs 15 (p er cent) Op margins 43 Selling exps & freight 16 Other exps1 Other mfg exps 1 Em p costs 4 Power and fuel 17 Material costs 18 Source: CMA Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW B-53 Table 18: Sh ree Cement Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07 Operating income Rs million 5,988 6,921 13,958 Operating margins per cent 28.9 31.8 43.7 Net profits Rs million 540 264 1,821 Net margins per cent 9.0 3.8 13.0 RoCE (return on average capital employed) per cent 11.4 6.9 19.7 Gearing times 1.1 1.4 1.9 Net cash accruals to debt times 0.45 0.40 0.68 Interest coverage times 8.2 15.8 52.2 Current ratio times 1.34 1.02 2.30 Source: Annual reports, CRISIL Research In 20 06-07, the companys operating margins as well as net margins registered a health y increase. While operating margins increased from 31.8 per cent in 2005-06 to 4 3.7 per cent 2006-07, net margins increased from 3.8 per cent in 2005-06 to 13.0 per cent in 2006-07. The increased level of debt to fund its expansion plans ha s led to a rise in the companys gearing, but with the increase in interest cover age to 52.2 times, its credit profile has remained intact. CRISIL RESEARCH CEMENT ANNUAL REVIEW C-i Sections 1.0 Demand supply C -1 2.0 State profile C-29 3.0 Raw material C-45 4.0 Tariffs C-57 5.0 Mar et shar e and financials C-59 6.0 Exports C-67 7.0 Cost C-71 Figures 1.0 Demand supply 01 Cement - Capacity and production trends C-27 02 Cement - Production and cons umption trends C-28 3.0 Raw material 01 Coal - International prices and landed cost of imports C-48 Tables 1.0 Demand supply 01 Capacity additions in 2006-0 7 and 2007-08 C-1 02 Cement - Capacity, production and operating rates C-2 03 Cement - Player-wise capacity trends (large units) C-3 04 Cement - Player-wise, unit-wise capacity trends (large units) C-5 05 Cement - Player-wise, unit-wise production trends (large units) C-10 06 Cement - Player-wise operating rates ( large units) C-14 07 Cement - Variety-wise production C-15 08 Cement - Company -wise changes in product mix C-16 09 Cement - Trends in rail lead distance and proportion of rail despatches C-19 10 Company-wise cement despatches by rail and road C-20 11 Cement - Aggregate demand-supply C-21 12 Cement - State-wise dem and-supply C-22 13 Cement - State-wise trends in demand C-24 14 Cement - State -wise trends in demand growth C-25 15 Housing segment - Budget allocation C-26 16 Cement - State-wise trends in per capita consumption C-27 Continued Indus try statistics June 2008 C-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW continued Tables 2.0 State profile 01 State profile - Andhra Prad esh C-29 02 State profile - Chhattisgarh C-30 03 State profile - Delhi C-31 0 4 State profile - Gujarat C-32 05 State profile - Haryana C-33 06 State profil e - Karnata a C-34 07 State profile - Kerala C-35 08 State profile - Madhya Pr adesh C-36 09 State profile - Maharashtra C-37 10 State profile - Orissa C-38 11 State profile - Punjab C-39 12 State profile - Rajasthan C-40 13 State pro file - Tamil Nadu C-41 14 State profile - Uttar Pradesh C-42 15 State profile - West Bengal C-43 3.0 Raw material 01 Fuel receipts C-45 02 Fuel consumption C-45 03 Coal - Receipts to cement industry to total coal production C-46 04 C

oal - Royalty C-47 05 Coal - Change in pithead prices C-47 06 Gypsum - Domesti c prices C-48 07 Lignite - Domestic prices C-48 08 Company-wise coal consumpti on C-49 09 State-wise trends in power tariffs C-50 10 Company-wise captive pow er generating capacity C-51 11 Cement - Production by use of captive power C-5 5 4.0 Tariffs 01 Cement - Excise duty C-57 02 Cement - Customs duty C-58 03 C ement - State-wise sales tax C-58 Continued CRISIL RESEARCH CEMENT ANNUAL REVI EW C-iii continued Tables 5.0 Mar et share and financials 01 C ement - Aggregate producer mar et shares C-59 02 Cement - Region-wise mar et sh ares C-60 03 Cement - Net sales of companies C-61 04 Cement - Operating profit margins of companies C-62 05 Cement - Net profit margins of companies C-63 06 Cement - Debt-equity ratio C-64 07 Cement - Return on capital employed C-65 6.0 Exports 01 Cement - Company-wise exports C-67 02 Cement - Country-wise expo rts C-68 03 Clin er - Company-wise exports C-68 04 Clin er - Country-wise expo rts C-69 7.0 Cost 01 Company-wise limestone cost C-71 02 Company-wise coal co sts C-72 03 Company-wise power consumption C-73 04 Company-wise coal cost C-7 4 CRISIL RESEARCH CEMENT ANNUAL REVIEW C-1 Table 1: Capacity additions in 2006-07 and 2007-08 (million tonnes) Company Plant State Month of Existing Capacity Total commissioning capacity added (a) New Meghalay Cement Ltd Meghalaya Apr-06 0.30 0.30 Rain Industrie s Ltd Andhra Pradesh Apr-06 0.50 0.50 J K Gotan Rajas than Mar-07 0.10 0.10 Cement Manu. Co. Ltd Meghalaya Apr-07 0.59 0.59 Megha T & E (P) Ltd Meghalaya May-07 0.46 0.46 Ambuja Cement Fara a West Bengal May-07 1.00 1.00 Ambuja Cement Rur ee Uttaranchal Sep-07 1.00 1.00 Ambuja Cement Magdalla Gujarat Jan-08 1.00 1.00 Jaypee Panipat Haryana Mar-08 1.0 0 1.00 Grasim Panipat Haryana Mar-08 1.30 1.30 Grasim Dadri Uttar Pradesh Mar-08 1.30 1.30 Sub tota l- (a) 8.55 8.55 (b) Expansion ACC Gagal I Himachal PradeshApr-061.800.20 2.00 ACC Gagal II Himachal PradeshApr-061.720.68 2.40 OCL India Ltd Orissa Apr-061.280.52 1.80 Dalmia India Ltd Tamil Nadu Apr-06 1.232.27 3.50 Jaypee Rewa Madhya Pradesh Apr-062.500.30 2.80 Jaypee Bela Madhya Pradesh Apr-062.000.20 2.20 J.K. Nimbahera Rajasthan Jul-062.800.50 3.30 K.C.P. Ltd Andhra Pradesh Jul-060.580.08 0.66 La shmi Cement Rajasthan Mar-072.231.17 3 .40 Lafarge Sonadin Chhattisgarh Apr-070.400.15 0.55 My Home Indus Ltd Andhra Pr adesh Apr-071.561.20 2.76 Vasvadatta Cement] Karnata a Apr-072.001.65 3.65 Shree Cement Rajasthan Jun-074.501.50 6.00 Chilampur Andhra Pradesh Dec-071.300.15 1. 45 Shree Cement Rajasthan Jan-086.003.10 9.10 Century Cement Chhattisgarh Jan-08 1.800.30 2.10 San arnagar Tamil Nadu Jan-081.550.25 1.80 Miahar Cement Madhya Pr adesh Jan-083.000.80 3.80 Dalavoi Tamil Nadu Feb-081.300.55 1.85 Grasim Bhatinda Punjab Mar-081.200.55 1.75 Aditya Cement Rajasthan Mar-081.750.05 1.80 Ultrate ch JCW Orissa Mar-080.800.20 1.00 Continued . 1.0 Demand supply C-2 CRISIL RESE ARCH CEMENT ANNUAL REVIEW ...continued (million tonnes) Company Plant State Month of Existing Capacity Total commissioning capacity added Ultratech WBCW West Bengal Mar-081.000.20 1.20 Ultratech HCW Chhattisgarh Mar-081.600.30 1.90 Grasim Cement- Raipur Chhattisgarh Mar-082.060.44 2.50 Kesor am Andhra Pradesh Mar-080.900.30 1.20 Orient Cement Andhra Pradesh Mar-081.600.8 0 2.40 Grasim South Tamil Nadu Mar-081.030.37 1.40 Rajashree Cement Karnata a Ma r-082.600.60 3.20 Ultratech Gujarat Gujarat Mar-085.300.50 5.80 Jafrabad Gujarat Mar-080.400.10 0.50 Rajashree Cement Maharashtra Mar-081.400.40 1.80 Orient Cem ent Jalgaon Maharashtra Mar-080.800.20 1.00 Mani garh Maharashtra Mar-081.500.40 1.90 Ultratech ACW Maharashtra Mar-083.300.30 3.60 Jaypee Rewa Madhya Pradesh M ar-082.800.20 3.00 Jaypee Bela Madhya Pradesh Mar-082.200.20 2.40 Sub total- (b) 21.68 93.47 (c) Deration / Deletion ACC Mancherial Andhra Pradesh Jul -060.330.33 - San aridurg Tamil Nadu Sep-070.720.12 0.60 Utratech APCW Andhra Pr adesh Mar-082.300.30 2.00 Uitratech ARCW (G) Tamil Nadu Mar-081.200.10 1.10 Chun

ar Uttar Prdesh Mar-081.680.18 1.50 Chur Uttar Prdesh Mar-080.470.47 0.00 Sub t otal- (c) 1.50 5.20 Total-(a) + (b) + ( c ) 28.73 Source: CMA Tab le 2: Cement - Capacity, production and operating rates (million tpa) 2001-02 20 02-03 2003-04 2004-05 2005-06 2006-07 2007-08 Large cement units Capaci ty 130.0139.0146.4153.6158.1166.7 175.7 Production (million tonnes) 102.0 111.41 17.4127.6141.8155.7 167.6 Operating rates (per cent) 78.580.180.283.188.593.4 95 .4 Mini cement and white cement units Capacity 11.111.111.111.111.111.1 11.1 P roduction (million tonnes) 4.55.05.06.06.06.0 6.0 Operating rates (per cent) 40. 545.045.054.154.154.1 54.1 Notes 1) Large units refer to those with a capacity of over 0.198 million tpa. 2) The installed capacity of mini cement plants in creased from not exceeding 600 tpd to 900 tpd or to 297,000 per annum and tot al clearance of cement produced in a financial year not to exceed 300,000 tonnes . 3) Capacities and production details are not monthly additions but the final p ublished numbers Source: All India Mini Cements Assocation of India and CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-3 Table 3: Cement - Player-wise capacit y trends (large units) (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACC 15.9 16.1 16.818.218.620.019.9 Andhra Cements 1.2 1.2 1.71.7 1.71.71.7 Binani Cement 1.7 1.7 1.82.22.22.22.2 Birla Corp 4.0 4.5 4.84.85.15.85 .78 CCI 3.9 3.9 3.93.93.93.93.9 Century Textiles 4.7 4.7 4.75.96.36.36.6 Chettin ad Cement 1.0 1.8 1.81.81.81.81.8 Dalmia Cement 1.0 1.0 1.21.21.23.53.5 DLF Ceme nt - - ----- Dwara a 0.3 0.3 0.30.30.30.30.3 Grasim 12.4 13.6 14.314.314.314.314 .7 Ambuja Cement Ltd 10.7 12.2 12.514.614.915.216.9 Gujarat Sidhee Cement 1.2 1. 2 1.21.21.21.21.2 HMP Cements 0.7 0.7 0.70.70.70.70.7 Idcol Cement 1.0 1.0 0.6--- India Cements 9.0 8.8 8.88.88.88.88.9 Indo Rama Cement 1.0 1.0 1.01.01.01.01. 0 JK Corp 2.2 2.2 2.22.22.22.23.2 JK Synthetics 2.7 3.0 3.33.33.43.94.1 JK Udaip ur Udyog 0.9 0.9 0.90.90.90.90.9 J and K 0.2 0.2 0.20.20.20.20.2 Jaipra ash Ind s. 4.1 4.6 4.65.66.16.66.7 Jaipur Udyog 1.0 1.0 1.01.01.01.01.0 KCP 0.6 0.6 0.6 0.60.60.60.7 Kalyanpur Cement 1.0 1.0 1.01.01.01.01.0 Kanoria Inds 0.3 0.3 0.30 .30.30.30.3 Kesoram Inds 2.1 2.1 2.12.12.62.94.3 Khalari 0.1 0.1 0.10.10.10.10.1 Kistna 0.2 0.2 0.20.20.20.20.2 Lafarge 4.5 4.5 5.05.05.05.05.0 Madras Cements 3 .9 5.0 5.55.55.55.55.5 Malabar Cements 0.4 0.4 0.40.60.60.60.6 Mangalam Cement 1 .0 1.0 1.01.01.01.01.0 Mawnluh Cherra 0.2 0.2 0.20.20.20.20.2 Mysore Cement 2.1 2.1 2.12.12.12.12.1 My Home Industries n.a. n.a. n.a.n.a.0.91.62.7 OCL India 1.0 1.0 1.31.31.31.71.8 Orient Cement 2.0 2.0 2.02.32.42.42.5 Panyam Cements 0.5 0. 5 0.50.50.50.50.5 Penna Cement 0.7 1.0 1.02.52.12.52.5 Prism Cement 2.5 2.5 2.52 .52.52.52.5 Continued . C-4 CRISIL RESEARCH CEMENT ANNUAL REVIEW ...con tinued (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Priyadarshini 0.6 0.6 0.60.71.01.11.1 Raymond Woollens - - ----- Rohtas Inds 0.6 0.6 0.60.60.60.60.6 Sanghi Industries Ltd. - - 2.62.62.62.62.6 Saurasht ra Cement 1.2 1.2 1.21.21.21.21.2 Sevalia 0.2 0.2 0.20.20.20.20.2 Shree Cement 2 .2 2.6 2.62.63.24.56.0 Shriram Cement 0.2 0.2 0.20.20.20.20.2 Sone Valley 0.3 0. 3 0.30.30.30.30.3 Sri Vishnu Cement - - ----- Tamil Nadu Cement 0.9 0.9 0.90.90. 90.90.9 TISCO - - ----- UP State Cement 2.6 2.6 2.62.62.62.62.5 Visvesvaraya 0.1 0.1 0.10.10.10.10.1 Ultratech Cement 15.0 16.3 17.017.017.017.017.1 Zuari Inds 2.2 3.4 3.43.43.43.43.4 Meghalaya Cement - - ---0.20.3 Total 130.0 139.0 146.415 3.6158.1167.1175.2 G: Grinding unit Notes 1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja C ement Eastern and in India Cement as Raasi Cement (India) respectively. 2) Fig ures for DLF Cement have been included with those of Gujarat Ambuja, as A mbuja Cement Rajasthan Ltd since April 2000. 3) Figures for Indian Rayon, Narm ada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with those of Grasim, Ultratech Cement Ltd, Grasim and Lafarge, respectively. 4) R aymond Woollens was acquired by Lafarge in 2000. 5) Sri Vishnu Cement's figur es have been included with Zuari Cement from February 2002. Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-5 Table 4: Cement - Player-wise, unit-wise capacity trends (large units) (million tonnes) State 2001-02 2002-03 2003-04 200

4-05 2005-06 2006-07 2007-08 ACC 15.916.116.818.218.6 20.0 19.9 Chaibasa Bihar ----- - - Jhar hand 0.60.60.60.60.7 0.9 0.9 Chanda Maharashtra 1.01.01.01.01.0 1.0 1.0 Damodhar Cement and Slag (G) West Bengal 0.50.50.50.50.5 0.5 0.5 Gagal-1 Himachal Pradesh 1.11.11.11.11.3 2.0 2.0 Gagal-2 Himachal Pradesh 1.61.61.61.61 .7 2.4 2.4 Idcol Cement Orissa --0.31.01.0 1.0 1.0 Jamul Chhattisgarh 1.61.61.61 .61.6 1.6 1.6 Madhya Pradesh ----- - - Kymore Madhya Pradesh 1.71.71.71.71.7 1.7 1.7 La heri Rajasthan 0.60.60.60.60.6 0.6 0.6 Madu arai Tamil Nadu 1.01.01.01. 01.0 1.0 1.0 Mancherial Andhra Pradesh 0.30.30.30.30.3 0.1 0.0 Sindri Bihar ---- - - Jhar hand 0.60.60.60.60.6 0.6 0.6 Ti aria (G) Uttar Pradesh 0.70.81.21.92. 0 2.0 2.0 Wadi - New Karnata a 2.62.62.62.62.6 2.6 2.6 Wadi Phase-I and II Karna ta a 2.12.22.12.22.1 2.1 2.1 Andhra Cement 1.21.21.71.71.7 1.7 1.7 Nadi ude-Dur ga Cement Andhra Pradesh 0.50.51.01.01.0 1.0 1.0 Vijaywada (G) Andhra Pradesh 0. 20.20.20.20.2 0.2 0.2 Vizag (G) Andhra Pradesh 0.50.50.50.50.5 0.5 0.5 Binani Ce ment Rajasthan 1.71.71.82.22.2 2.2 2.2 Birla Corp 4.04.54.84.85.1 5.8 5.8 Birla Cement Rajasthan 0.60.70.70.70.7 0.7 0.7 Birla Vi as Madhya Pradesh 0.80.80.80. 80.8 0.8 0.8 Chittor Cement Rajasthan 0.91.31.31.31.3 1.3 1.3 Durgapur (G) West Bengal 0.60.60.60.60.6 0.6 0.6 Raebaraeli Uttar Pradesh 0.40.40.60.60.6 0.6 0.6 Satna Cement Madhya Pradesh 0.80.80.80.80.8 0.8 0.8 Durga Hitech Cement (G) West Bengal 0.3 1.0 1.0 CCI 3.93.93.93.93.9 3.9 3.9 Adilabad Andhra Pradesh 0.4 0.40.40.40.4 0.4 0.4 A altara Chhattisgarh 0.40.40.40.40.4 0.4 0.4 Madhya Prades h ----- 0.0 0.0 Bo ajan Assam 0.20.20.20.20.2 0.2 0.2 Char hi-Dadri Haryana 0.20 .20.20.20.2 0.2 0.2 Delhi (G) Delhi 0.50.50.50.50.5 0.5 0.5 Kur unta Karnata a 0 .20.20.20.20.2 0.2 0.2 Mandhar Chhattisgarh 0.40.40.40.40.4 0.4 0.4 Madhya Prade sh ----- 0.0 0.0 Neemuch Madhya Pradesh 0.40.40.40.40.4 0.4 0.4 Rajban Himachal Pradesh 0.20.20.20.20.2 0.2 0.2 Tandur Andhra Pradesh 1.01.01.01.01.0 1.0 1.0 Continued . C-6 CRISIL RESEARCH CEMENT ANNUAL REVIEW continued (million to nnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Century Text iles 4.74.74.75.96.3 6.3 6.6 Century Cement Chhattisgarh 1.21.21.21.71.8 1.8 1. 9 Madhya Pradesh ----- - - Maihar Cement Unit-I Madhya Pradesh 1.92.02.02.73.0 3 .0 3.2 Maihar Cement Unit-II Madhya Pradesh 0.1---- - - Mani garh Unit-I Maharas htra 1.51.51.51.51.5 1.5 1.5 Mani garh Unit-II (G) Maharashtra ----- - - Chettin ad Cement 1.01.81.81.81.1 1.8 1.8 Kari alli Tamil Nadu 0.41.21.21.20.7 1.2 1.2 Karur Tamil Nadu 0.60.60.60.60.4 0.6 0.6 Dalmia Cement Tamil Nadu 1.01.01.21.20. 7 3.5 3.5 DLF Cement Rajasthan ----- - - Dwara a Gujarat 0.30.30.30.30.3 0.3 0.3 Grasim 12.413.614.314.314.3 14.3 14.5 Aditya Cement Rajasthan 1.61.71.71.71.7 1.7 1.8 Grasim Cement - Raipur Chhattisgarh 1.91.92.12.12.1 2.1 2.1 Madhya Prade sh ----- - - Grasim South Tamil Nadu 1.01.01.01.01.0 1.0 1.1 Grasim-Bhatinda (G) Punjab 0.31.01.21.21.2 1.2 1.2 Rajashree Cement - Hotgi (G) Maharashtra 1.31.41 .41.41.4 1.4 1.4 Rajashree Cement - Mal hed Karnata a 2.22.32.62.62.6 2.6 2.7 Se wree (G) Maharashtra 0.20.20.20.20.2 0.2 0.2 Si a Gujarat 0.91.11.11.11.1 1.1 1 .1 Si a New Unit Gujarat 0.2---- - - Vi ram Cement Unit-I Madhya Pradesh 2.83.0 3.03.03.0 3.0 3.0 Vi ram Cement Unit-II Madhya Pradesh ----- - - Vi ram Super Ce ment Madhya Pradesh ----- - - Ambuja Cement Ltd 10.712.212.514.614.9 15.2 15.3 Ambuja Cement Gujarat 1.51.51.51.51.5 1.5 1.5 Ambuja Cement - Bhatinda (G) Punja b 0.50.50.50.50.5 0.5 0.5 Ambuja Cement - San rail (G) West Bengal 0.91.01.01.01 .0 1.0 1.0 Ambuja Cement Eastern Chhattisgarh 1.31.01.01.01.0 1.0 1.0 Madhya Pra desh ----- 0.0 0.0 Ambuja Cement Raj Ltd. Rajasthan 1.51.51.51.81.8 1.8 1.8 Gaja mbuja Cement Gujarat 2.52.52.53.03.0 3.0 3.0 Gujarat Ambuja Unit HP Himachal Pra desh 1.21.21.21.21.2 1.5 1.6 Gujarat Ambuja Unit Ropar (G) Punjab 1.31.31.32.52. 5 2.5 2.5 Maratha Cement Maharashtra -1.72.02.42.4 2.4 2.4 Gujarat Sidhee Cement Gujarat 1.21.21.21.21.2 1.2 1.2 HMP Cements 0.70.70.70.70.7 0.7 0.7 Porbander Gujarat 0.20.20.20.20.2 0.2 0.2 Shahabad Karnata a 0.50.50.50.50.5 0.5 0.5 Idcol Cement Orissa 1.01.00.6 -- - - India Cements 9.08.88.88.88.8 8.8 8.9 Chilam ur Wor s Andhra Pradesh 1.31.31.31.31.3 1.3 1.3 Dalavoi Tamil Nadu 1.11.31.31.31.3 1.3 1.3 Raasi Cement (India) Andhra Pradesh 2.12.32.32.32.3 2.3 2.3 San aridurg Tamil Nadu 0.70.70.70.70.7 0.7 0.7 San arnagar Tamil Nadu 1.41.61.61.61.6 1.6 1 .6 Sri Vishnu Cement Andhra Pradesh 0.9---- - - Visa a Cement Andhra Pradesh 1.0 1.11.11.11.1 1.1 1.1 Yerraguntla Andhra Pradesh 0.50.50.50.50.5 0.5 0.5 Indo Ram a Cement Maharashtra 1.01.01.01.0 1.0 1.0 1.0 continued . CRISIL RESEARCH CEMEN T ANNUAL REVIEW

C-7 continued (million tonnes) State 2001-02 2002-03 2003-04 200405 2005-06 2006-07 2007-08 JK Corp 2.22.22.22.22.2 2.2 3.2 La shmi Cement UnitI Rajasthan 2.22.22.22.22.2 2.2 3.2 La shmi Cement Unit-II Rajasthan ----- - - L a shmi Cement Unit-II, Phase-II Rajasthan ----- - - JK Synthetics 3.74.04.34.34 .4 3.9 4.1 JK Mangrol Cement (G) Rajasthan 0.30.60.70.80.8 0.8 0.8 Nimbahera - J K Cement Rajasthan 2.42.42.52.52.7 3.1 3.3 Jaipur Udyog Rajasthan 1.01.01.01.01 .0 0.0 0.1 J and K Jammu and Kashmir 0.20.20.20.20.2 0.2 0.2 Jaipra ash Inds 4 .14.64.66.16.1 6.6 6.7 Jaypee Bela Madhya Pradesh 1.51.51.52.02.0 2.2 2.2 Jaypee Rewa Madhya Pradesh 2.52.52.52.52.5 2.8 2.8 Sadva Khurd (G) Uttar Pradesh 0.20. 60.60.60.6 0.6 0.6 Jaypee Ayodhya (G) Uttar Pradesh ---1.01.0 1.0 1.1 Jaipur Udy og Rajasthan 1.01.01.01.01.0 1.0 1.0 KCP Andhra Pradesh 0.60.60.60.60.6 0.6 0.6 Kalyanpur Cement Bihar 1.01.01.01.0 1.0 1.0 1.0 Kanoria Inds Karnata a 0.30.30 .30.30.3 0.3 0.3 Kesoram Inds 2.12.12.12.12.6 2.9 4.3 Kesoram Cement Andhra Pra desh 0.90.90.90.90.9 0.9 0.9 Vasavadatta Unit-I Karnata a 1.21.21.21.21.7 2.0 3. 4 Vasavadatta Unit-II Karnata a ----- - - Khalari 0.10.10.10.10.1 0.1 0.1 Khala ri Bihar ----- - - Jhar hand 0.10.10.10.10.1 0.1 0.1 Kistna Andhra Pradesh 0.20. 20.20.20.2 0.2 0.2 Lafarge 4.54.55.05.05.0 5.0 5.0 Arasmeta Cement Chhattisgarh 2.22.21.61.61.6 1.6 1.6 Madhya Pradesh ----- - - Lafarge - Jojobera (G) Bihar ---- - - Jhar hand 1.91.93.03.03.0 3.0 3.0 Lafarge - Sonadih Chhattisgarh 0.40.4 0.40.40.4 0.4 0.4 Madhya Pradesh ----- - - Madras Cements 3.95.05.55.55.5 5.5 5.5 Alathiyur Wor s Tamil Nadu 1.11.41.41.41.4 1.4 1.4 Alathiyur Wor s-II Tamil Nadu 0.91.81.81.81.8 1.8 1.8 Jayantipuram Andhra Pradesh 1.11.11.61.61.6 1.6 1.6 Ramasamyraja Nagar Tamil Nadu 0.80.80.80.80.8 0.8 0.8 Malabar Cements 0.40.40. 40.60.6 0.6 0.6 Malabar Cements Kerala 0.40.40.40.40.4 0.4 0.4 Malabar Cements ( G) Kerala --0.00.20.2 0.2 0.2 Mangalam Cement 1.01.01.01.01.0 1.0 1.0 Mangalam Cement Rajasthan 0.40.40.40.40.4 0.4 0.4 Neer Shree Cement Rajasthan 0.60.60.60. 60.6 0.6 0.6 Mawnluh Cherra Meghalaya 0.20.20.20.20.2 0.2 0.2 Mysore Cement 2.1 2.12.12.12.1 2.1 2.1 Diamond Cement - Jhansi (G) Uttar Pradesh 0.50.50.50.50.5 0 .5 0.5 Diamond Cement Unit-I Madhya Pradesh 0.50.50.50.50.5 0.5 0.5 Diamond Ceme nt Unit-II Madhya Pradesh 0.50.50.50.50.5 0.5 0.5 Mysore Cement Karnata a 0.60.6 0.60.60.6 0.6 0.6 My Home Industries Andhra Pradesh n.a.n.a.n.a.n.a.0.91 1.6 2.7 continued . C-8 CRISIL RESEARCH CEMENT ANNUAL REVIEW continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 OCL India Orissa 1.01.01.31.31.3 1.7 1.8 Orient Cement 2.02.02.02.32.4 2.4 2.5 Orient Ce ment Andhra Pradesh 1.31.31.31.51.6 1.6 1.7 Orient Cement-Jalgaon Maharashtra 0. 70.70.70.80.8 0.8 0.8 Panyam Cements Andhra Pradesh 0.50.50.50.5 0.5 0.5 0.5 Pen na Cement 0.71.01.02.52.1 2.5 2.5 Tadpatri Andhra Pradesh 0.71.01.01.51.4 1.5 1 .5 Ganeshpahad Andhra Pradesh ---1.00.7 1.0 1.0 Prism Cement Madhya Pradesh 2.52 .52.52.52.5 2.5 2.5 Priyadarshini Andhra Pradesh 0.60.60.61.0 1.0 1.0 1.0 Rohtas Inds Bihar 0.60.60.60.60.6 0.6 0.6 Sanghi Industries Gujarat --2.62.62.6 2.6 2. 6 Saurashtra Cement Gujarat 1.21.21.21.21.2 1.2 1.2 Sevalia Gujarat 0.20.20.20.2 0.2 0.2 0.2 Shree Cement 2.22.62.62.63.2 4.5 6.0 Raj Cement Rajasthan ----- - Shree Cement Rajasthan 2.22.62.62.63.2 4.5 6.0 Shriram Cement Rajasthan 0.20.20 .20.20.2 0.2 0.2 Sone Valley 0.30.30.30.30.3 0.3 0.3 Sone Valley Bihar ----- - Jhar hand 0.30.30.30.30.3 0.3 0.3 TISCO ----- - - Tisco (G), Bihar Bihar ---- - - Tisco (Raipur) Madhya Pradesh ----- - - Tamil Nadu Cement 0.90.90.90.90. 9 0.9 0.9 Alangulam Tamil Nadu 0.40.40.40.40.4 0.4 0.4 Ariyalur Tamil Nadu 0.50. 50.50.50.5 0.5 0.5 continued . CRISIL RESEARCH CEMENT ANNUAL REVIEW C-9 continu ed (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 200 6-07 2007-08 Ultratech Cement 15.016.317.017.0 17.0 17.017.1 ARCW (G) Tamil Nad u 0.71.11.21.2 1.2 1.21.2 Jafrabad Gujarat 0.40.40.40.4 0.4 0.40.4 L&T - Andhra Pradesh Andhra Pradesh 2.62.22.32.3 2.3 2.32.3 L&T - Awarpur Phase-I Maharashtra 3.03.03.33.3 3.3 3.33.3 L&T - Gujarat Gujarat 4.24.85.35.3 5.3 5.35.3 L&T - Jha rsuguda (G) Orissa 0.80.80.80.8 0.8 0.80.8 L&T Hirmi Chhattisgarh 1.91.91.61.6 1 .6 1.61.6 Madhya Pradesh ---- - -- Magdalla (G) Gujarat 0.70.70.70.7 0.7 0.70.7 Ratnagiri (G) Maharashtra 0.40.40.40.4 0.4 0.40.4 WBCW (G) West Bengal 0.21.01.0 1.0 1.0 1.01.0 UP State Cement 2.62.62.62.6 2.6 2.62.5 Chunar (G) Uttar Pradesh

1.71.71.71.7 1.7 1.71.7 Chur Uttar Pradesh 0.50.50.50.5 0.5 0.50.4 Dalla Uttar Pradesh 0.40.40.40.4 0.4 0.40.4 Zuari Inds. 2.23.43.43.4 3.4 3.43.4 Sri Vishnu Cement Andhra Pradesh 0.21.21.21.2 1.2 1.21.2 Zuari Cement Andhra Pradesh 2.02. 22.22.2 2.2 2.22.2 Total 130.0139.0146.4153.6 158.1 167.1175.2 G: Grinding uni t Notes 1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja Cement Eastern and in India Cement as Raasi Cement (India) respectively. 2) Figures for DLF Cement have been in cluded with those of Gujarat Ambuja, as Ambuja Cement Rajasthan Ltd since April 2000. 3) Figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with those of Grasim, Ultratech Cement, Grasi m and Lafarge, respectively. 4) Raymond Woollens was acquired by Lafarge in 2000. 5) Sri Vishnu Cement's figures have been included with Zuari Cement f rom February 2002. 6) Capacities are monthly add-ups. Of the total capacity, 2.41 million tpa is not in operation. 7) Idcol Cement was acquired by ACC in December 2003 Source: CMA C-10 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 5: Cement - Player-wise, unit-wise production trends (large units) (mil lion tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACC 12.313.915.416.617.9 18.620.0 Chaibasa Bihar ----- -- Jhar hand 0.30.40.40.50.6 0.70.7 Chanda Maharashtra 0.60.80.91.01.0 1.11.2 Damodhar Cement and Slag (G) W est Bengal 0.40.40.50.50.5 0.50.5 Gagal-1 Himachal Pradesh 1.01.11.11.21.6 1.71. 9 Gagal-2 Himachal Pradesh 1.71.61.71.81.9 2.02.3 Idcol Cement Orissa --0.30.80. 8 0.91.0 Jamul Chhattisgarh 1.20.90.80.91.0 1.21.2 Madhya Pradesh ----- -- Kymor e Madhya Pradesh 1.31.51.31.21.3 1.61.9 La heri Rajasthan 0.60.70.70.70.7 0.70.9 Madu arai Tamil Nadu 0.70.90.90.90.9 0.80.9 Mancherial Andhra Pradesh 0.20.30. 20.20.1 -- Sindri Bihar ----- -- Jhar hand 0.60.70.70.70.9 0.90.9 Ti aria (G) Ut tar Pradesh 0.70.91.62.02.2 2.32.4 Wadi - New Karnata a 1.22.12.62.42.7 2.62.6 W adi Phase-I and II Karnata a 1.61.61.61.81.8 1.61.6 Andhra Cements 0.80.70.60.7 0.3 0.61.1 Nadi ude-Durga Cement Andhra Pradesh 0.60.60.40.50.2 0.50.7 Vizag (G) Andhra Pradesh 0.20.20.20.30.1 0.20.4 Binani Cement Rajasthan 1.92.12.22.22.3 2 .43.0 Birla Corp 4.24.64.85.05.1 5.35.3 Birla Cement Rajasthan 0.70.70.80.80.8 0.80.8 Birla Vi as Madhya Pradesh 0.80.80.80.80.9 0.90.9 Chittor Cement Rajastha n 1.11.31.41.41.5 1.61.7 Durgapur (G) West Bengal 0.50.60.60.70.6 0.60.5 Raebara eli Uttar Pradesh 0.40.40.60.60.6 0.60.5 Satna Cement Madhya Pradesh 0.70.70.70. 70.7 0.70.7 0.0 0.10.1 CCI 0.60.50.60.80.9 1.00.9 Adilabad Andhra Prades h ----- -- A altara Chhattisgarh ----- -- Madhya Pradesh ----- -- Bo ajan Assam 0.10.10.10.10.1 0.10.1 Char hi-Dadri Haryana ----- -- Delhi (G) Delhi ----- -- K ur unta Karnata a ----- -- Mandhar Chhattisgarh ----- -- Madhya Pradesh ----- -Neemuch Madhya Pradesh ----- -- Rajban Himachal Pradesh 0.10.10.20.20.2 0.20.2 Tandur Andhra Pradesh 0.30.30.30.50.6 0.70.6 Continued . CRISIL RESEARCH C EMENT ANNUAL REVIEW C-11 continued (million tonnes) State 2001-02 2002-03 2003-0 4 2004-05 2005-06 2006-07 2007-08 Century Textiles 5.15.25.46.1 6.6 6.76.9 Cent ury Cement Chhattisgarh 1.51.61.61.7 1.7 1.81.9 Madhya Pradesh ---- - -- Maihar Cement Unit-I Madhya Pradesh 2.52.62.52.9 3.3 3.53.4 Maihar Cement Unit-II Madhy a Pradesh ---- - -- Mani garh Unit-I Maharashtra 1.11.11.31.4 1.6 1.41.6 Mani ga rh Unit-II (G) Maharashtra ---- - -- Chettinad Cement 0.91.71.92.2 2.4 2.72.9 K ari alli Tamil Nadu -0.71.01.1 1.2 1.71.7 Karur Tamil Nadu 0.91.00.91.1 1.2 1.01 .2 Dalmia Cement Tamil Nadu 1.01.21.31.3 1.6 2.73.3 DLF Cement Rajasthan ---- -- Grasim 10.211.812.513.1 14.6 15.316.2 Aditya Cement Rajasthan 1.41.61.51.4 1 .7 1.92.1 Grasim Cement - Raipur Chhattisgarh 1.51.61.61.7 2.0 2.02.0 Madhya Pra desh ---- - -- Grasim South Tamil Nadu 0.70.91.00.9 1.2 1.21.4 Grasim-Bhatinda ( G) Punjab 0.10.91.11.0 1.2 1.21.3 Rajashree Cement - Hotgi (G) Maharashtra 1.21. 41.41.5 1.5 1.61.8 Rajashree Cement - Mal hed Karnata a 1.92.12.52.7 2.9 3.13.0 Sewree (G) Maharashtra ---- - -- Si a Gujarat 0.70.80.70.8 0.9 0.90.8 Si a New Unit Gujarat 0.1--- - -- Vi ram Cement Unit-I Madhya Pradesh 2.62.62.73.1 3.2 3 .33.7 Vi ram Cement Unit-II Madhya Pradesh ---- - -0.0 Vi ram Super Cement Madhy a Pradesh ---- - - 0.0 Ambuja Cement Ltd 9.811.913.214.5 15.1 16.416.8 Ambuja C ement Gujarat 1.41.61.61.6 1.5 1.61.5 Ambuja Cement - Bhatinda (G) Punjab 0.30.3 0.40.4 0.6 0.60.6 Ambuja Cement - San rail (G) West Bengal 0.70.90.91.1 1.1 1.31

.2 Ambuja Cement Eastern Chhattisgarh 0.80.50.60.8 0.7 0.91.0 Madhya Pradesh --- - -- Ambuja Cement Raj Ltd. Rajasthan 1.31.41.51.6 1.8 1.71.8 Gajambuja Cement Gujarat 2.82.92.93.2 3.0 3.33.2 Gujarat Ambuja Unit HP Himachal Pradesh 1.00.91 .01.0 1.1 1.21.2 Gujarat Ambuja Unit Ropar (G) Punjab 1.51.81.92.4 2.7 2.82.8 Ma ratha Cement Maharashtra -1.62.42.5 2.6 3.03.4 Gujarat Sidhee Cement Gujarat 0.7 0.50.60.6 0.9 1.31.3 Idcol Cement Orissa 0.70.80.5 - - -- India Cements 6.35.86 .46.5 8.4 8.89.2 Chilam ur Wor s Andhra Pradesh 0.80.91.11.0 1.2 1.41.3 Dalavoi Tamil Nadu 1.01.01.01.0 1.1 1.11.3 Raasi Cement (India) Andhra Pradesh 1.31.01.1 1.2 2.2 2.42.5 San aridurg Tamil Nadu 0.40.40.40.4 0.5 0.60.6 San arnagar Tamil Nadu 1.11.41.31.4 1.6 1.51.8 Sri Vishnu Cement Andhra Pradesh 0.5--- - -- Visa a Cement Andhra Pradesh 0.90.81.01.0 1.2 1.21.1 Yerraguntla Andhra Pradesh 0.30.3 0.40.5 0.6 0.60.6 continued . C-12 CRISIL RESEARCH CEMENT ANNUAL REVIEW continue d (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Indo Rama Cement Maharashtra 0.50.60.60.60.50.60.7 JK Corp 1.92.12.32.4 2.72.83.4 La shmi Cement Unit-I Rajasthan 1.92.12.32.42.72.83.4 JK Synthetics 2 .32.93.03.33.53.63.7 JK Mangrol Cement (G) Rajasthan 0.10.60.70.91.01.00.9 Nimba hera - JK Cement Rajasthan 2.22.32.32.42.52.62.8 JK Udaipur Udyog Rajasthan 0.7----- J and K Jammu and Kashmir 0.10.10.10.10.20.20.2 Jaipra ash Inds 4.24.74. 75.46.37.17.1 Jaypee Bela Madhya Pradesh 1.81.81.82.02.22.42.3 Jaypee Rewa Madhy a Pradesh 2.42.62.42.62.83.23.3 Sadva Khurd (G) Uttar Pradesh 0.00.30.50.60.60.6 0.6 Jaypee Ayodhya (G) Uttar Pradesh ---0.30.80.90.9 KCP Andhra Pradesh 0.40.50. 50.50.50.60.7 Kalyanpur Cement Bihar 0.60.60.30.40.50.60.5 Kanoria Inds. Karnat a a 0.20.20.20.10.10.0- Kesoram Inds. 2.32.52.93.13.13.54.5 Kesoram Cement Andh ra Pradesh 0.70.70.81.01.01.11.2 Vasavadatta Unit-I Karnata a 1.51.82.02.12.12.5 3.3 Vasavadatta Unit-II Karnata a ------- Lafarge 3.83.73.84.44.64.75.0 Arasmet a Cement Chhattisgarh 1.30.80.91.31.31.41.5 Madhya Pradesh ------- Lafarge - Joj obera (G) Bihar ------- Jhar hand 2.12.52.42.62.72.83.0 Lafarge - Sonadih Chhatt isgarh 0.40.40.50.50.50.40.5 Madhya Pradesh ------- Madras Cements 3.13.43.53. 74.66.15.6 Alathiyur Wor s Tamil Nadu 1.30.80.60.50.81.61.0 Alathiyur Wor s-II T amil Nadu 0.30.91.11.31.61.91.9 Jayantipuram Andhra Pradesh 1.00.80.70.71.01.31. 4 Ramasamyraja Nagar Tamil Nadu 0.61.01.11.11.21.31.2 Malabar Cements 0.40.40.5 0.60.70.60.6 Malabar Cements Kerala 0.40.40.50.40.50.50.4 Malabar Cements (G) Ke rala ---0.10.20.20.1 Mangalam Cement 1.41.41.31.41.61.41.5 Mangalam Cement Raja sthan 0.40.50.40.50.50.50.5 Neer Shree Cement Rajasthan 0.90.91.00.91.10.91.0 Ma wnluh Cherra Meghalaya 0.10.10.10.10.10.10.1 Mysore Cement 1.82.12.01.82.02.12. 2 Diamond Cement - Jhansi (G) Uttar Pradesh 0.70.80.80.80.70.80.8 Diamond Cement Unit-I Madhya Pradesh 0.30.30.30.40.50.60.5 Diamond Cement Unit-II Madhya Prade sh 0.50.60.50.50.50.50.6 Mysore Cement Karnata a 0.30.40.40.20.40.30.3 My Home I ndustries Andhra Pradesh n.a.n.a.n.a.n.a. 0.91.72.5 continued . CRISIL RESEA RCH CEMENT ANNUAL REVIEW C-13 continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 OCL India Orissa 1.01.21.21.31.61.92.0 Orient Cement 1.41.51.72.02.12.22.4 Orient Cement Andhra Pradesh 1.11.01.11.31. 31.41.5 Orient Cement-Jalgaon Maharashtra 0.30.50.60.70.80.80.9 Panyam Cements A ndhra Pradesh 0.10.00.10.10.00.00.4 Penna Cement 0.61.01.22.01.72.72.8 Tadpatri Andhra Pradesh 0.61.01.21.31.11.71.7 Ganeshpahad Andhra Pradesh ---0.70.61.01.1 Prism Cement Madhya Pradesh 2.01.92.01.92.12.22.4 Priyadarshini Andhra Pradesh 0.70.70.30.81.01.11.6 Sanghi Industries Gujarat --0.71.21.82.42.5 Saurashtra Cem ent Gujarat 0.80.80.60.81.11.41.4 Shree Cement 2.42.72.83.03.24.86.3 Raj Cement Rajasthan ------- Shree Cement Rajasthan 2.42.72.83.03.24.86.3 Shriram Cement R ajasthan 0.30.30.30.30.40.40.4 Sri Vishnu Cement Andhra Pradesh ------- Tamil Na du Cement 0.70.80.90.80.80.70.7 Alangulam Tamil Nadu 0.30.20.30.20.30.20.1 Ariy alur Tamil Nadu 0.40.50.60.60.50.50.5 TISCO ------- Tisco (G), Bihar Bihar ------ Tisco (Raipur) Madhya Pradesh ------- Ultratech Cemco 11.812.012.212.913. 714.615.1 ARCW (G) Tamil Nadu 0.50.80.70.70.80.91.0 Jafrabad Gujarat 0.30.00.10. 20.20.20.4 L&T - Andhra Pradesh Andhra Pradesh 1.72.02.32.22.02.12.1 L&T - Awarp ur Phase-I Maharashtra 2.63.13.33.23.13.43.4 L&T - Gujarat Gujarat 3.23.32.93.03 .63.53.6 L&T - Jharsuguda (G) Orissa 0.70.60.50.80.90.90.9 L&T Hirmi Chhattisgar h 1.91.31.31.41.41.71.7 Madhya Pradesh ------- Magdalla (G) Gujarat 0.40.10.20.5

0.60.60.5 Ratnagiri (G) Maharashtra 0.30.20.10.20.20.30.4 WBCW (G) West Bengal 0 .10.70.70.81.01.11.1 Zuari Inds. 1.72.22.42.52.83.23.3 Sri Vishnu Cement Andhr a Pradesh 0.10.70.70.81.11.21.3 Zuari Cement Andhra Pradesh 1.61.61.71.71.82.02. 0 Meghalaya Cement Meghalaya Cement -----0.20.5 Total 102.0111.4117.4127.6140. 5155.4167.6 G: Grinding unit Notes 1) Figures for Modi Cement and Raasi Ce ment from 1998-99, have been included in Gujarat Ambuja as Ambuja Cement Eastern and in India Cement as Raasi Cement (India) respectively. 2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Raj asthan Ltd since April 2000. 3) Figures of Indian Rayon, Narmada Cement, Shree D igvijay and Tisco from 1999-2000 have been included with those of Grasim, Ultratech Cement, Grasim and Lafarge, respectively. 4) Raymond Woollens has be en acquired by Lafarge in 2000. 5) Sri Vishnu Cement's figures have been incl uded with Zuari Cement from February 2002. 6) Idcol Cement was acquired by ACC in December 2003 5) Khalari, HMP, UP Cement have been excluded owing to nil p roduction for the last 6 years. Source: CMA C-14 CRISIL RESEARCH CEMENT AN NUAL REVIEW Table 6: Cement - Player-wise operating rates (large units) (per c ent) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACC 77.086.491.391. 196.0 92.8 100.5 Andhra Cements 64.859.236.943.018.4 35.3 64.4 Binani Cement 116 .4128.0119.3104.2105.3 110.4 134.5 Birla Corp 103.8101.099.8105.0100.7 90.9 91.3 CCI 15.813.915.020.924.5 26.6 23.6 Century Textiles 109.4111.3115.7102.9105.3 1 07.1 104.4 Chettinad Cement 93.893.4106.2122.8131.1 149.1 161.4 DLF Cement ----- - Dalmia Cement 98.2117.9103.3104.8126.3 78.2 94.1 Grasim 81.986.987.591.8102 .3 107.0 109.7 Ambuja Cement Ltd 91.897.9105.699.3101.6 108.0 102.3 Gujarat Sidh ee Cement 60.745.049.645.977.6 106.6 105.6 Idcol Cement 74.088.279.1-- - - India Cements 69.965.672.273.895.7 99.4 104.0 Indo Rama Cement 50.155.556.860.248.9 5 5.0 66.5 JK Corp. 85.196.3101.4109.5119.4 127.6 106.8 JK Synthetics 84.096.591.7 101.3102.7 93.6 90.7 JK Udaipur Udyog 79.1---- - - J and K 67.956.959.670.279.7 77.2 77.6 Jaipra ash Inds 102.4101.9102.396.9103.5 107.0 106.5 KCP 62.786.381.0 84.392.4 94.8 111.7 Kalyanpur Cement 62.556.233.936.945.6 58.7 53.9 Kanoria Inds 58.448.258.340.730.9 4.7 0.0 Kesoram Inds 107.6119.0136.5148.4118.6 121.6 104. 2 Lafarge 85.583.175.287.891.5 93.5 99.5 Madras Cements 79.869.164.667.083.2 112 .1 102.2 Malabar Cements 93.797.7108.890.5110.1 100.2 91.8 Mangalam Cement 136.2 141.6134.1136.9161.0 141.7 150.7 Mawnluh Cherra 52.851.849.646.650.1 50.6 42.2 M ysore Cement 84.998.894.788.097.6 101.9 105.2 My Home Industries ----101.5 110.2 93.1 OCL India 104.2115.495.0105.5124.2 112.3 111.1 Orient Cement 70.376.485.28 6.388.0 90.8 97.1 Panyam Cements 25.26.619.814.31.7 0.0 81.5 Penna Cement 77.910 0.5115.280.582.3 107.1 112.1 Prism Cement 80.077.281.175.884.8 87.6 96.4 Priyada rshini 119.8116.149.3112.496.4 104.8 107.7 Sanghi Industries --26.346.570.3 92.8 96.9 Saurashtra Cement 72.765.054.267.991.9 116.9 120.5 Shree Cement 112.5105.6 109.3116.099.6 106.6 105.5 Shriram Cements 138.5147.5147.5160.3196.8 184.6 184.5 Sri Vishnu Cement ----- - - Tisco ----- - - Continued . CRISIL RESEARCH CEMENT ANNUAL REVIEW C-15 continued (per cent) 2001-02 2002-03 2003-04 2004-05 2005-06 200 6-07 2007-08 Tamil Nadu Cement 77.187.495.589.687.2 81.5 74.7 Ultratech Cement L td 78.773.871.776.080.6 86.1 88.1 Zuari Inds 77.566.170.074.483.5 94.0 96.5 Tota l 78.580.180.282.288.9 93.0 95.4 G: Grinding unit Notes 1) Figures for Mod i Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as A mbuja Cement Eastern and India Cements as Raasi Cement, respectively. 2) Figures for Indian Rayon, Narmada Cement, Shree Digvijay, Sri Vishnu Cement and Tisco from 1999-2000 have been included with those of Grasim, Ultratech Ceme nt, Grasim, India Cements and Lafarge, respectively. 3) Raymond Woollens has b een acquired by Lafarge in 2000. 4) Sri Vishnu Cement's figures have been in cluded with Zuari Cement from February 2002. 5) Khalari, HMP, UP Cement have been excluded owing to nil production for the last 6 years. 6) Figures for DL F Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Rajas than Ltd since April 2000. Source: CMA Table 7: Cement - Variety-wise produc tion (million tonnes) OPC Percentage PPC Percentage PBFS Percentage Others1 Perc entage Total of total of total of total of total Seventh Plan 1985-86 13 .1 40.7 14.445.14.413.60.20.6 32.1 1986-87 18.0 51.8 12.535.94.111.70.20.6 34.8

1987-88 23.0 61.6 9.725.94.411.80.30.7 37.4 1988-89 27.9 66.7 8.821.14.811.50.30 .7 41.8 1989-90 30.6 71.3 7.517.44.610.80.30.6 42.9 Annual plan 1990-91 31.9 69.7 8.919.44.810.40.20.5 45.8 1991-92 35.4 70.0 9.218.25.611.00.40.7 50.6 Eight h Plan 1992-93 36.5 71.9 8.316.45.410.60.61.1 50.7 1993-94 38.7 71.5 9.217.15 .39.80.91.6 54.1 1994-95 41.2 70.6 10.718.35.810.00.71.1 58.4 1995-96 45.0 69.8 11.818.27.111.00.61.0 64.5 1996-97 48.5 69.2 13.619.47.310.50.60.8 70.0 Ninth Pl an 1997-98 54.3 70.8 14.518.97.59.70.50.7 76.7 1998-99 57.4 70.3 15.619.18.21 0.10.50.6 81.7 1999-2000 62.8 67.0 21.322.09.410.00.80.8 94.2 2000-01 58.1 62.0 24.526.210.311.10.70.8 93.6 2001-02 57.7 56.3 32.331.511.911.60.50.5 102.4 Tenth Plan 2002-03 56.1 50.3 43.138.711.610.40.60.5 111.3 2003-04 53.5 45.5 52.144 .411.39.60.60.5 117.5 2004-05 56.0 43.9 60.247.210.78.40.60.5 127.6 2005-06 55.3 39.5 73.452.511.28.00.10.1 139.9 2006-07 48.6 31.2 93.660.112.98.30.70.4 155.7 Eleventh Plan 2007-08 43.8 26.0 111.166.013.58.00.00.0 168.3 1 Others include s sulphate resistant cement; Indian railway standard-40; low heat and special ce ment Source: CMA C-16 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 8: Cement - Company-wise changes in product mix (per cent) 2001-02 2002-03 2003-04 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 ACC 20.2 59. 2 20.5 0.118.165.216.50.216.1 68.1 15.60.2 Andhra Cements 66.1 14.9 18.9 -53.72 2.523.8-35.6 27.3 37.0- Binani Cement 100.0 - - -83.516.5--78.3 21.7 -- Birla C orp 50.5 36.3 12.6 0.643.944.012.1-37.3 49.8 12.9- CCI 94.3 5.7 - -91.98.1--85 .3 9.4 -5.3 Century Textiles 32.8 58.6 8.5 -25.963.310.8-25.1 67.6 7.3- Chettin ad Cement 31.4 64.7 2.1 1.933.662.32.31.834.4 62.6 0.72.4 Dalmia Cement 46.9 4 8.3 1.0 3.853.141.70.44.851.3 42.6 0.25.9 DLF Cement - - - - ---- - - -- Grasim 79.9 9.9 8.0 2.165.524.97.02.554.9 36.2 6.52.4 Ambuja Cement Ltd 60.0 33.8 6.0 0.263.432.83.70.161.1 35.6 3.30.1 Gujarat Sidhee Cement 98.6 1.4 - -92.08.0--8 9.3 10.7 -- Idcol Cement 31.5 1.0 67.5 -27.31.171.6-23.1 9.0 67.9- India Cement s 65.5 34.5 - 0.0464.535.5--60.4 39.6 -- Indo Rama Cement - - 100.0 - --100.0- - 100.0- J and K 100.0 - - -100.0---100.0 - -- Jaipra ash Inds 40.2 58.4 1.430.967.3-1.825.8 72.4 -1.8 JK Corp 82.0 18.0 - -80.319.7--64.8 35.2 -- JK S ynthetics 87.2 10.9 - 1.985.714.3--68.6 31.4 -- JK Udaipur Udyog 100.0 - - -10 0.0---- - -- Kalyanpur Cement 10.5 - 89.5 -10.7-89.3-9.1 - 90.9- Kanoria Inds 4.5 - 95.5 -5.4-94.6-9.1 - 90.9- KCP 92.3 7.7 - -71.528.5--51.2 48.8 -- Kesoram Inds 95.4 4.6 - -86.913.1--69.7 30.3 -- Lafarge 11.4 45.3 43.2 - 11.448.240.4 - 12.5 46.4 41.1Continued CRISIL RESEARCH CEMENT ANNUAL REVIEW C-17 conti nued (per cent) 2004-05 2005-06 2006-07 OPC PPC PBFSC Others 1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 ACC 17.663.9 18.4 0.1 16.964.41 8.70.0 11.9 68.0 20.20.0 Andhra Cements 31.130.6 38.3 - 33.333.333.30.0 38.0 35 .6 26.40.0 Binani Cement 71.328.7 - - 60.939.10.00.0 51.2 48.8 0.00.0 Birla Cor p 36.450.0 13.6 - 30.755.913.80.0 19.2 69.6 11.00.2 CCI 88.77.3 - 4.0 94.36.80 .00.0 85.6 6.9 0.07.5 Century Textiles 11.183.5 5.4 - 8.585.26.30.0 5.0 87.4 7. 60.0 Chettinad Cement 24.374.6 - 1.0 12.784.13.60.0 8.8 80.6 10.20.5 Dalmia Cem ent 44.348.6 0.2 6.9 32.857.36.01.4 29.3 65.8 0.04.9 DLF Cement -- - Grasim 54.341.6 2.1 2.0 50.646.23.10.3 38.6 56.1 3.81.4 Ambuja Cement Ltd 59.938.5 1.6 - 38.261.60.00.0 24.4 75.4 0.00.3 Gujarat Sidhee Cement 91.88.2 - 88.612.80.00.0 80.5 19.5 0.00.0 Idcol Cement -- - - 0.00.00.00.00.0 0.0 0.00. 0 India Cements 53.746.2 - - 54.446.00.00.0 47.3 52.7 0.00.0 Indo Rama Cement -- 100.0 - 0.00.0100.00.0 0.0 0.0 100.00.0 J and K 100.0- - - 100.00.00.00.0 1 00.0 0.0 0.00.0 Jaipra ash Inds 29.169.5 - 1.5 30.069.20.00.0 23.5 74.8 0.01.7 JK Corp 66.833.2 - - 54.546.10.00.0 38.0 62.1 0.00.0 JK Synthetics 76.024.0 - 61.538.70.00.0 0.0 0.0 0.00.0 JK Udaipur Udyog -- - - 0.00.00.00.00.0 0.0 0.0 0.0 Kalyanpur Cement 7.70.0 92.3 - 0.00.0100.00.0 1.6 34.6 63.90.0 Kanoria Inds 3.30.0 96.7 - 0.00.0100.00.0 0.0 0.0 100.00.0 KCP 54.345.7 - - 51.049.00.00.0 96.8 3.2 0.00.0 Kesoram Inds 55.944.1 - - 53.546.30.00.0 49.7 50.3 0.00.0 Lafa rge 11.552.4 36.1 0.0 10.556.932.40.0 5.2 62.1 32.70.0 contin ued C-18 CRISIL RESEARCH CEMENT ANNUAL REVIEW continued (per cent) 2001-02 2002-03 2003-04 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFS C Others1 Madras Cements 13.077.4 9.6 -5.092.62.4-8.7 89.8 1.5- Malabar Cements 10.389.7 - -6.393.60.2-9.5 80.5 10.0- Mangalam Cement 86.213.8 - -88.012.0--7

6.0 24.0 -- Mawnluh Cherra 100.0- - -100.0---100.0 - -- Mysore Cement 14.469.8 15.8 -10.672.816.6-1.4 80.4 18.1- Narmada Cement -- - - ---- - - -- OCL India 3.02.9 90.7 3.46.812.280.90.27.3 13.7 78.70.3 Orient Cement 99.70.3 - -91.78.3 --72.2 27.8 -- Panyam Cements 100.0- - -85.51.213.3-100.0 - -- Penna Cement 96. 8- 3.2 -96.8-3.2-78.5 - 21.5- Prism Cement 76.523.5 - -61.538.5--51.0 49.0 -- P riyadarshini 94.10.3 5.5 -74.715.110.2-92.8 5.9 1.3- Raymond Woollens -- - - --- - - -- Sanghi Industries Ltd -- - -----100.0 - -- Saurashtra Cement 96.60.4 0.1 3.096.00.30.33.492.5 0.9 0.85.8 Shree Cement 74.925.1 - -72.727.3--62.6 37 .4 -- Shree Digvijay -- - ------ - -- Shriram Cement 68.929.3 - 1.863.431.6-5. 060.1 36.6 -3.3 Sri Vishnu Cement -- - ------ - -- Tamil Nadu Cement 63.436.6 0.0 -79.820.20.1-77.1 22.8 0.00.0 Ultratech Cement Ltd 68.315.9 15.4 0.456.627. 815.30.353.7 33.1 13.10.1 Zuari Inds. 87.112.9 - - 73.126.9-- 63.2 36.8 -continued CRISIL RESEARCH CEMENT ANNUAL REVIEW C-19 continued (per cent ) 2004-05 2005-06 2006-07 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 Madras Cements 9.889.4 0.9 - 13.687.30.10 17.3 81.8 0.90.0 M alabar Cements 5.194.0 0.9 - 0.0100.00.00.0 1.0 98.4 0.60.0 Mangalam Cement 64 .036.0 - - 59.441.40.00.0 47.2 52.8 0.00.0 Mawnluh Cherra 100.0- - - 100.00.00. 00.0 100.0 0.0 0.00.0 Mysore Cement 0.581.8 17.7 - 0.085.015.00.0 0.3 85.9 13.9 0.0 Narmada Cement -- - - ---- - - -- OCL India 1.419.3 73.8 5.5 0.122.281.00 .0 0.1 0.0 97.82.1 Orient Cement 66.533.5 - - 66.733.10.00.0 41.4 58.6 0.00.0 P anyam Cements 100.0- - - 0.00.00.00.0 73.1 26.9 0.00.0 Penna Cement 78.92.6 17. 5 0.9 46.77.545.60.0 37.7 12.8 49.50.0 Prism Cement 47.252.8 - - 41.058.90.00.0 13.0 87.0 0.00.0 Priyadarshini 77.822.2 - - 40.060.00.00.0 36.1 63.9 0.00.0 Ra ymond Woollens -- - - ---- - - -- Sanghi Industries Ltd 100.0- - 4.4 100.00.00 .00.0 100.0 0.0 0.00.0 Saurashtra Cement 91.73.2 0.6 - 100.00.00.00.0 91.4 8.6 0.00.0 Shree Cement 59.640.4 - - 46.054.00.00.0 23.5 76.5 0.00.0 Shree Digvijay -- - - ---- - - -- Shriram Cement 27.569.7 - 2.7 25.075.00.00.0 25.2 74.8 0.0 0.0 Sri Vishnu Cement -- - - ---- - - -- Tamil Nadu Cement 76.623.4 - - 76.919 .04.000.00 74.4 25.6 0.00.0 Ultratech Cement Ltd 50.538.3 11.2 - 53.639.57.10.0 45.2 47.9 6.90.0 Zuari Inds. 70.229.7 0.1 - 71.325.42.60.0 64.1 35.9 0.00.0 My Home Industries -- - - 59.939.90.00.0 47.0 53.0 0.00.0 Meghalaya Cement -- - ---- 6.9 93.1 0.00.0 OPC: Ordinary Porland Cement, PPC: Portland Pozzolana Ceme nt, PBFSC: Portland Blast Furnace Slag Cement 1 Others includes sulphate resis tant cement, Indian railway standard-40, low heat and special cement Notes 1) Since 1999-2000, figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco have been included with those of Grasim, Ultratech Cement and Lafarge, respectively. 2) Raymond Woollens was acquired by Lafar ge in 2000. 3) Sri Vishnu Cement's figures have been included with Zu ari Cement from February 2002. Source: CMA Table 9: Cement Trends in rail lead distance and proportion of rail despatches Rail lead Prop ortion of rail to total ( ms) (per cent) 2000-01 58139.0 2001-02 56335.0 200203 53733.0 2003-04 53734.0 2004-05 53733.0 2005-06 56236.0 2006-07 56738.0 Sourc e: CMA C-20 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 10: Company-wise cem ent despatches by rail and road 1999-2000 2000-01 2001-02 2002-03 2003-0 4 2004-05 2005-06 2006-07 (per cent) Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road ACC 5149 47 5346544951475347 53 46 54 5050 Andhra Cements 1684 7 939911288188221 79 10 90991 Binani Cement 991 6 943 9759511896 94 10 901585 Birla Corp 3664 37 6335653664346629 71 31 693268 Centur y Textiles 6931 70 3071297228673365 35 66 346733 Chettinad Cement 2773 29 7117 832377287218 82 23 772971 Dalmia Cement 2080 26 7424761585198116 84 22 782080 G rasim 4753 39 6133673367346634 65 35 654456 Ambuja Cement Ltd 1981 22 78128811 89128812 88 20 802555 Gujarat Sidhee Cement 1981 8 921783-100-1000 94 0 100665 Idcol Cements 5446 53 47594166346832- - India Cements 3169 30 702377188221792 2 78 29 713070 Jaipra ash Inds 3268 33 6734662674316934 66 41 594654 Kesoram In ds 5644 57 43 5248 6535 6733 63 37 63 37 6436 Lafarge 6040 78 228020772377237 9 21 76 247921 Madras Cements 694 8 926942985956 94 16 842377 Mangalam Cement 6 337 63 3759415941564454 46 57 436535 Mysore Cement 5446 58 42 6436 6337 6535 69 31 68 32 7525 OCL India 5050 47 5345553466495157 43 61 396733 Panyam Cements

-100 - 100-100-100-1000 100 0 1000100 Sanghi Industries -- - -----49618 77 16 84947 Saurashtra Cement 1189 11 896941997934 59 1 991835 Shree Cement 6634 60 4060404654247615 85 12 882872 Shree Digvijay -- - -------- - Shriram Cement 7 030 41 5939614357396130 70 31 693664 Tamil Nadu Cement 793 5 95496-1002983 97 2 98991 Ultratech Cement Ltd 4060 41 5938623367356538 50 51 494145 Zuari Inds 6 535 54 46 4258 3763 4852 36 64 31 693961 Total 4159 39 61 3565 3367 3466 33 66 36 64 3857 Note Despatches by road include those by sea. Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-21 Table 11: Cement - Aggregate demand-supply (million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Opening stoc s 4.4 6.3 6.65.45.96.15.6 5.9 6.7 (Cement and clin er) Production 94.2 93.4102.0111.41 17.4127.6140.5 155.7 168.3 North 21.3 21.123.826.628.730.934.5 37.2 41.5 South 2 8.9 27.329.533.436.136.843.6 49.9 53.6 East 6.2 6.616.716.716.718.720.0 21.8 22. 7 West 37.8 38.432.134.736.038.942.3 46.7 50.5 Demand (domestic) 91.9 90.099.01 07.6113.8121.1135.6 149.0 164.0 North 28.7 28.131.534.136.338.434.6 45.8 49.8 So uth 25.7 23.826.129.731.530.844.4 44.0 48.7 East 12.0 12.916.317.017.520.319.8 2 4.0 25.3 West 25.5 25.225.126.928.631.636.8 35.2 40.2 Exports 3.1 5.15.06.98.1 9.99.2 5.9 3.7 (Cement and clin er) Closing stoc s 6.3 6.65.45.96.15.65.9 6 .7 7.4 (Cement and clin er) Capacity (available)1 109.7 115.9130.013 9.0146.4153.6158.1 167.1 175.7 North 24.8 26.028.431.032.435.137.0 40.6 43.6 Sou th 31.6 33.541.344.646.346.949.8 53.2 55.8 East 8.8 8.921.822.323.023.424.0 25.2 26.5 West 44.6 47.438.541.044.847.047.3 48.1 49.8 Capacity utilisation (per ce nt) 85.9 80.678.580.180.283.188.9 93.1 95.8 1 Available capacity is the monthly add-up capacity Notes 1) Operating rate has been calculated as cement pro duction divided by available capacity. 2) Regional classification of states h as changed from 2001-02, due to the formation of the new state of Chattisgarh. H ence, figures for the regions (East and West) for 2001-02 are not comparable with earlier years with respect to capacity, demand and production. Sou rce: CMA C-22 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 12: Cement - Sta te-wise demand-supply 2000-01 2001-02 2002-03 2003-04 (million t onnes) Capacity1 Demand Capacity1 Demand Capacity1 Demand Capacity1 Demand Nor th 26.0428.05 28.4231.4831.0034.0632.38 36.26 Chandigarh -0.35 -0.32-0.22- 0.1 9 Delhi 0.502.67 0.502.940.502.970.50 3.39 Haryana 0.172.85 0.173.260.173.450. 17 3.72 Himachal Pradesh 3.761.06 4.061.254.061.434.06 1.38 Jammu and Kashmir 0 .200.73 0.200.790.200.710.20 0.81 Punjab 1.294.08 2.174.892.845.253.04 5.40 Ra jasthan 16.074.74 17.075.2118.436.1618.89 6.61 Uttar Pradesh 4.0511.58 4.2512. 004.8012.745.52 13.40 Uttaranchal -- -0.83 -1.13 - 1.36 West 47.4425.23 38.50 25.1541.0126.9144.78 28.58 Goa -0.29 -0.34-0.36- 0.49 Gujarat 12.496.34 13.437 .5314.017.3817.12 7.84 Madhya Pradesh 26.675.50 15.984.0516.195.0116.19 5.57 Ma harashtra 8.2713.10 9.1013.23 10.8214.16 11.47 14.68 East 8.9012.90 21.8016.3 022.3416.9622.98 17.47 Assam 0.200.93 0.200.830.200.870.20 1.02 Bihar 4.634.15 1.623.281.623.201.62 3.13 Chhattisgarh -- 11.251.4710.951.3710.25 1.42 Jhar ha nd -- 3.471.403.471.774.58 2.03 Orissa 2.752.63 2.762.932.763.453.01 3.38 West Bengal 1.134.66 2.295.943.125.633.12 5.78 Meghalaya 0.200.52 0.200.45 0.200. 67 0.20 0.72 South 33.5323.80 41.2726.0844.6129.6646.25 31.47 Andhra Pradesh 17 .595.87 19.546.7520.027.7521.10 8.01 Karnata a 6.924.98 9.746.169.897.1310.19 8.23 Kerala 0.424.66 0.424.560.425.360.42 5.82 Tamil Nadu 8.608.12 11.578.3214 .289.0714.55 9.10 Others2 -0.17 -0.29-0.35- 0.31 Total 115.9289.98 130.0099.0 0 138.96107.59 146.39 113.8 Continued . CRISIL RESEARCH CEMENT ANNUAL REVIEW C-23 continued 2004-05 2005-06 2006-07 2007-08 (mil lion tonnes) Capacity1 Demand Capacity1 Demand Capacity1 Demand Capacity1 Dema nd North 35.1238.37 37.0541.26 40.5945.78 43.61 49.79 Chandigarh -0.19 -0.26 0.37 - 0.42 Delhi 0.503.75 0.503.50 0.502.97 0.50 3.52 Haryana 0.174.25 0.174. 93 0.175.59 0.28 6.96 Himachal Pradesh 4.061.45 4.331.59 6.131.87 6.20 1.89 Jam mu and Kashmir 0.200.95 0.201.01 0.201.24 0.20 1.26 Punjab 3.915.23 4.205.66 4 .206.50 4.25 6.60 Rajasthan 19.526.97 20.338.27 22.079.13 24.82 10.33 Uttar Pra

desh 6.7614.12 7.3214.20 7.3215.90 7.37 16.28 Uttaranchal -1.47 -1.83 -2.22 - 2.54 West 47.0531.62 47.3132.76 47.8135.20 48.29 40.21 Goa -0.76 -0.49 -0.43 - 0.49 Gujarat 17.638.71 17.639.12 17.6310.07 17.76 11.68 Madhya Pradesh 17.44 6.29 17.696.37 18.196.51 18.42 7.48 Maharashtra 11.9815.85 12.0016.78 12.001 8.19 12.11 20.56 East 23.4320.33 24.0022.66 25.2323.99 26.55 25.33 Assam 0.201 .12 0.201.09 0.201.04 0.20 1.08 Bihar 1.623.80 1.624.36 1.624.49 1.62 4.54 Chh attisgarh 10.672.06 10.823.08 10.823.52 10.97 3.81 Jhar hand 4.582.31 4.662.63 4.832.63 4.83 2.68 Orissa 3.043.86 0.200.77 0.200.94 0.29 1.24 West Bengal 3.1 26.22 3.044.15 3.434.43 3.58 4.72 Meghalaya 0.200.95 3.466.59 4.126.93 5.06 7.27 South 46.8530.75 49.7738.88 53.1744.02 55.80 48.67 Andhra Pradesh 21.487. 77 23.870.08 24.7312.59 25.86 14.74 Karnata a 10.197.64 10.7211.46 10.9911.12 12.41 11.80 Kerala 0.626.07 0.629.38 0.626.97 0.62 7.13 Tamil Nadu 14.568.97 1 4.566.50 16.8312.84 16.91 14.46 Others2 -0.30 -0.33 -0.50 - 0.53 Total 153.5912 1.07 158.13135.56 166.80148.99 174.25 164.00 Notes 1 Capacity is avail able cement capacity, which is the monthly add-up of capacity 2 Includes Pon dicherry, and the Andaman and Nicobar Islands Source: CMA C-24 CRIS IL RESEARCH CEMENT ANNUAL REVIEW Table 13: Cement - State-wise trends in deman d (million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 200 6-07 2007-08 North 28.7 28.1 31.534.136.338.441.345.8 49.8 Chandigarh 0.3 0.3 0. 40.20.20.20.30.4 0.4 Delhi 2.8 2.7 2.93.03.43.73.53.0 3.5 Haryana 2.8 2.8 3.33.4 3.74.24.95.6 7.0 Himachal Pradesh 0.9 1.1 1.21.41.41.51.61.9 1.9 Jammu and Kashm ir 0.6 0.7 0.80.70.80.91.01.2 1.3 Punjab 4.3 4.1 4.95.35.45.25.76.5 6.6 Rajastha n 5.2 4.7 5.26.26.67.08.39.1 10.3 Uttar Pradesh 11.8 11.6 12.012.713.414.114.215 .9 16.3 Uttaranchal - - 0.81.11.41.51.82.2 2.5 West 25.5 25.2 25.126.928.631.632 .835.2 40.2 Goa 0.3 0.3 0.30.40.50.80.50.4 0.5 Gujarat 7.5 6.3 7.57.47.88.79.110 .1 11.7 Maharashtra 5.6 5.5 4.05.05.66.36.46.5 7.5 Madhya Pradesh 12.1 13.1 13.2 14.214.715.916.818.2 20.6 East 12.0 12.9 16.317.017.520.322.724.0 25.3 Assam 0.9 0.9 0.80.91.01.11.11.0 1.1 Bihar 3.9 4.2 3.33.23.13.84.44.5 4.5 Chhattisgarh - 1.51.41.42.13.13.5 3.8 Jhar hand - - 1.41.82.02.32.62.6 2.7 Meghalaya 0.4 0.5 0.50.70.70.90.80.9 1.2 Orissa 2.1 2.6 2.93.53.43.94.14.4 4.7 West Bengal 4.7 4.7 5.95.65.86.26.66.9 7.3 South 25.6 23.8 26.129.731.530.838.944.0 48.7 Andaman an d Nicobar 0.0 0.1 0.10.10.10.10.10.1 0.1 Andhra Pradesh 7.7 5.9 6.77.78.07.811.5 12.6 14.7 Karnata a 4.9 5.0 6.27.18.27.69.411.1 11.8 Kerala 4.8 4.7 4.65.45.86.1 6.57.0 7.1 Pondicherry 0.1 0.1 0.20.20.20.30.30.4 0.4 Tamil Nadu 8.1 8.1 8.39.19 .19.011.112.8 14.5 Total 91.7 90.0 99.0107.6113.8121.1135.6149.0 164.0 Note Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence, figures for the regions (east and west ) for 2001-02 are not comparable with the earlier years with respect to capacit y, demand and production. Source: CMA CRISIL RESEARCH CEMENT ANNUAL REV IEW C-25 Table 14: Cement - State-wise trends in demand growth (per cent) 1999-200 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 North 20.8 -2. 3 12.28.26.55.87.5 10.98.8 Chandigarh -5.5 16.9 1.2-36.9-12.7-2.139.9 38.315.6 D elhi 11.1 -5.1 10.30.814.110.7-6.6 -15.218.5 Haryana 20.8 3.2 14.35.98.014.116.0 13.424.6 Himachal Pradesh 26.7 12.6 14.717.7-3.45.09.6 17.41.0 Jammu and Kashmi r -4.3 15.4 8.1-10.314.617.17.0 22.31.4 Punjab 14.8 -5.0 19.87.52.8-3.08.0 14.91 .5 Rajasthan 14.8 -8.0 9.918.37.25.418.7 10.313.1 Uttar Pradesh 31.2 -2.1 3.66.1 5.25.30.6 11.92.4 Uttaranchal - - -35.820.48.424.4 21.614.3 West 6.3 -0.9 -0.37. 06.210.63.6 7.514.2 Goa -4.9 15.4 15.65.937.455.0-36.4 -11.414.3 Gujarat -9.4 -1 5.6 18.8-2.06.311.04.7 10.415.9 Maharashtra 17.1 -1.4 -26.423.811.113.01.3 2.215 .0 Madhya Pradesh 10.8 8.1 1.07.03.78.05.9 8.413.0 East 22.3 7.9 26.44.13.016.31 1.5 5.95.6 Assam 37.0 9.5 -11.15.017.19.7-2.9 -4.33.9 Bihar 19.8 5.1 -20.9-2.4-2 .421.514.7 3.11.0 Chhattisgarh - - --6.73.944.649.6 14.38.2 Jhar hand - - -26.11 4.914.113.7 0.11.8 Meghalaya 38.2 40.8 -13.948.17.732.3-19.1 22.931.1 Orissa 9.3 27.6 11.617.8-2.214.47.4 6.96.5 West Bengal 27.4 -1.4 27.2-5.12.77.65.9 5.15.0 South 15.6 -7.0 9.613.76.1-2.326.4 13.210.6 Andaman and Nicobar -2.9 187.4 61.65.0-37.2-26.151.5 44.8-3.0 Andhra Pradesh 21.4 -23.8 14.914.83.4-2.947.5 9.817.1 Karnata a 14.0 2.1 23.815.815.4-7.222.8 18.56.2 Kerala 17.0 -2.3 -2.317.78.64.3 7.0 7.32.2 Pondicherry -6.1 26.8 80.937.6-1.13.331.3 18.18.9 Tamil Nadu 11.1 -0.

1 2.58.90.3-1.424.1 15.412.6 Total 15.2 -1.9 10.08.75.812.112.0 9.910.1 Note Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence, figures for the regions (East and West) for 2001-02 are not comparable with the earlier years with respect to capacity, demand and production. Source: CMA C-26 CRISIL RESEARCH CEMENT ANNUAL RE VIEW Table 15: Housing segment - Budget allocation (Rs million) Housing, urban and Per cent of total regional development plan outlay Third plan (1961-66) 1 ,2761.5 Annual plans (1966-69) 7331.1 Fourth plan (1969-74) 2,7021.7 Fifth plan (1974-79) 11,5002.9 Annual plan (1979-80) 3,6883.0 Sixth plan (1980-85) 28,3912. 6 Seventh plan (1985-90) 48,3622.3 Annual plans (1990-92) 30,3232.5 Eighth plan (1992-97) 138,0432.7 Annual plan (1997-98) 21,1751.6 Annual plan (1998-99) 31,43 52.1 Annual plan (1999-2000) 35,1642.2 Annual plan (2000-01) 35,8841.9 Annual pl an (2001-02) 66,7453.6 Annual plan (2002-03) 76,4573.7 Annual plan (2003-04)1 86 ,2923.5 Annual plan (2004-05)1 65,9614.0 Tenth Plan (2002-06) 405,000 n.a. 1 Rev ised estimates Source: Economic survey and Ministry of Housing and Urban Pover ty Alleviation CRISIL RESEARCH CEMENT ANNUAL REVIEW C-27 Table 16: Cement - Stat e-wise trends in per capita consumption ( ilograms) 2001-02 2002-03 2003-04 2004 -05 2005-06 2006-07 2007-08 Andhra Pradesh 106 127125134164179181 Assam 36 31403 8423637 Bihar 38 403742504940 Chandigarh 387 269200185228314396 Chhattisgarh 67 666580127154n.a Delhi 204 213211248217196199 Goa 203 191230413288211259 Gujarat 149 156160177173188219 Haryana 149 162162195205233315 Himachal Pradesh 214 23722 1245246292246 Jammu and Kashmir 80 73718992106112 Jhar hand 45 6268818792n.a Kar nata a 112 131153149164196207 Kerala 141 160178187193205207 Madhya Pradesh 74 87 9511210811083 Maharashtra 139 144149155166170209 Orissa 81 9495108114117124 Pond icherry 227 218222205241296318 Punjab 185 219214215214240258 Rajasthan 98 117125 129145154170 Tamil Nadu 136 146147152172195221 Uttranchal 91 119147159182233n.a Uttar Pradesh 71 747780778613 West Bengal 68 706973797984 Others 39 4559666067n. a Total 97 106110118125136148 Note Others include other north-eastern sta tes. Source: CMA and CRISIL Research Figure 1: Cement - Capacity an d production trends 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 AprMayJunJulAug SepOctNovDecJanFebMar (Million tonnes) Capacity 2005-06 Capacity 2006-07 Capacit y 2007-08 Production 2005-06 Production 2006-07 Production 2007-08 Source: CMA C-28 CRISIL RESEARCH CEMENT ANNUAL REVIEW Figure 2: Cement - Production and con sumption trends 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 AprMayJun JulAugSepOctNovDecJanFebMar (Million tonnes) 2005-06 Production 2005-06 Consumpt ion 2006-07 Production 2006-07 Consumption 2007-08 Production 2007-08 Consumptio n Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-29 Table 1: State profil e - Andhra Pradesh (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006 -07 2007-08 Capacity 19.520.021.121.523.9 24.7 25.9 Production 13.213.314.014.31 8.6 22.0 24.4 Consumption 6.77.78.07.811.5 12.6 14.7 Growth (per cent) 14.914.83 .4-2.947.5 9.8 17.1 Gross surplus/(deficit) 6.45.56.06.57.2 9.4 9.6 Inflows Fr om other states (excluding Andhra Pradesh) 0.91.21.41.41.9 1.8 2.0 - Maharashtra 0.40.60.60.60.8 0.9 0.9 - Karnata a 0.40.50.70.71.0 1.0 1.0 - Madhya Pradesh 0. 00.00.00.00.0 0.0 0.0 - Chhattisgarh 0.10.10.10.10.0 0.0 0.0 Andhra Pradesh 5.86 .5 6.66.39.6 10.4 12.5 Outflows To other states (excluding Andhra Pradesh ) 7.76.87.37.810.1 11.3 11.8 - Tamil Nadu 2.31.81.71.62.3 2.7 3.1 - Karnata a 2. 42.73.02.74.2 5.2 5.4 - Maharashtra 1.71.11.11.61.8 1.9 1.8 - Kerala 0.80.70.80. 70.7 0.8 0.8 - Others 0.50.50.71.31.0 0.7 0.7 Andhra Pradesh 5.86.5 6.66.39.6 10 .4 12.5 Adjusted surplus/(deficit) (0.4)(0.1)0.1 (0.0)(1.4) Mar et shares of ey players India Cements 23.3%19.6%18.8%19.5%20.3% 17.3% 14.6% My Home Indus tries 0.0%0.0%0.0%0.0%10.2% 9.5% 10.9% Zuari Inds. 6.0%9.9%10.9%10.3%9.0% 9.2% 8 .5% Penna Cement 4.4%4.4%5.0%0%*8.8% 9.6% 8.8% Ultratech Cement 11.3%10.3%11.2%1 1.3%7.4% 6.9% 6.4% Kesoram Inds. 7.0%7.4%7.5%6.8%5.9% 6.3% 7.6% Orient Cement 6. 7%6.6%7.0%6.5%5.3% 5.8% 6.0% Madras Cements 9.8%8.7%7.9%8.0%6.4% 6.7% 6.6% ACC 5 .3%6.9%8.0%8.4%6.0% 4.5% 4.0% Priyadarshini 6.2%5.0%2.8%5.7%4.9% 7.4% 6.5% Price s in ey centres in the state (Rs/bag) Hyderabad 143119117130132 184 226 Note

Prices are wholesale prices for OPC-53 grade and are inclusive of excise, sal es tax and octroi. * In 2004-05, Details of penna cement were Not Available. Source: CRISIL Research, CMA and Industry 2.0 State profile C-30 CRISI L RESEARCH CEMENT ANNUAL REVIEW Table 2: State profile - Chhattisgarh (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 11.311 .010.210.710.8 10.8 11.0 Production 8.67.17.38.38.6 9.4 9.9 Consumption 1.51.41. 42.13.1 3.5 3.8 Growth (per cent) --6.73.944.649.6 14.3 8.2 Gross surplus/(defic it) 7.25.85.96.35.6 5.9 6.1 Inflows From other states (excluding Chhattisgarh ) 0.00.00.00.00.1 3.2 3.5 - Chhattisgarh 1.51.41.42.03.0 0.4 0.3 Outflows To other states (excluding Chhattisgarh) 7.05.65.86.35.5 6.0 5.7 -Madhya Pradesh 0. 60.50.60.80.4 0.4 0.3 - West Bengal 2.71.51.61.71.4 1.6 1.7 - Bihar 0.70.50.60.6 0.5 0.7 0.8 - Maharashtra 0.60.40.30.20.1 0.1 0.2 - Assam 0.50.40.40.40.4 0.4 0. 2 - Delhi 0.10.00.10.10.1 0.1 0.1 - Orissa 0.91.11.01.11.3 1.4 1.6 - Others 1.01 .21.31.51.3 1.3 0.8 Chhattisgarh 1.51.41.42.03.0 3.4 3.7 Adjusted surplus/defici t 0.10.20.10.00.1 0.1 0.5 Mar et shares of ey players Century Textiles 15%18 %20%22%24% 23% 22% Grasim 16%15%15%17%30% 19% 18% Lafarge 21%22%22%21%19% 18% 18 % Ultratech Cement 23%20%20%19%4% 18% 17% ACC 14%14%12%11%11% 11% 12% Gujarat Am buja 12%12%10%11%9% 9% 10% Notes 1) Prices are wholesale prices for OPC-53 gr ade and include excise, sales tax and octroi. 2) Regional classification of s tates has changed from 2001-02, due to the formation of a new state of Chattisga rh. Hence, figures for the regions (East and West) for 2001-02 are not compa rable with the earlier years, with respect to capacity, demand and productio n. Source: CRISIL Research, CMA and Industry CRISIL RESEARCH CEMENT ANNUAL REVIEW C-31 Table 3: State profile - Delhi (million tonnes) 2001-02 2002-0 3 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 0.50.50.50.50.5 0.5 0.5 Produ ction 0.00.00.00.00.0 0.0 0.0 Consumption 2.93.03.43.73.5 3.0 3.5 Growth (per ce nt) 10.30.814.110.7-6.6 -15.2 18.5 Gross surplus/(deficit) (2.9)(3.0)(3.4)(3.7)( 3.5) (3.0) (3.5) Inflows From other states (excluding Delhi) 2.93.03.43. 73.5 3.0 3.5 - Rajasthan 2.32.42.72.72.4 2.0 2.3 - Madhya Pradesh 0.50.40.40.70. 7 0.7 0.8 - Others 0.10.20.30.30.5 0.3 0.4 Delhi 0.00.00.00.00.0 0.0 0.0 Mar et shares of ey players Shree Cement 15%18%18%16%18% 18% 18% Ambuja Cement Ltd 12%11%12%14%14% 12% 13% JK Synthetics 8%12%13%13%13% 15% 15% Grasim 12%13%1 5%16%10% 13% 14% ACC 5%7%9%8%8% 5% 7% Jaipra ash Inds. 6%3%1%3%6% 6% 6% Birla Co rp. 6%6%5%5%6% 5% 6% Mangalam Cement 5%6%5%4%6% 6% 4% Shriram Cement 6%7%5%4%5% 5% 4% JK Corp. 11%9%8%7%5% 4% 4% Binani Cement 4%4%4%3%3% 4% 4% Mysore Cement 2% 2%1%1%2% 2% 1% Lafarge 1%0%0%1%2% 1% 1% Prices in the ey centre in the state (R s/bag) Delhi 136130134150170 215 236 Note Prices are wholesale pri ces for OPC-53 grade and are inclusive of excise, sales tax and octroi. Source : CRISIL Research, CMA and Industry C-32 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 4: State profile - Gujarat (million tonnes) 2001-02 2002-03 200304 2004-05 2005-06 2006-07 2007-08 Capacity 13.414.017.117.617.617.6 17.8 Produc tion 10.510.110.311.713.615.2 15.4 Consumption 7.57.47.88.79.110.1 11.7 Growth ( per cent) --2.06.311.04.710.4 15.9 Gross surplus/(deficit) 3.02.72.53.04.45.1 3. 7 Inflows From other states (excluding Gujarat) 1.92.01.72.02.01.9 2.1 - Raja sthan 1.61.81.51.62.01.8 2.1 - Madhya Pradesh 0.20.20.10.10.00.0 0.0 Gujarat 5.6 5.46.26.76.67.8 9.2 Outflows To other states (excluding Gujarat) 4.94.74.24.9 6.92.3 2.8 - Maharashtra 2.01.71.31.51.92.0 2.6 - Rajasthan 0.20.20.10.10.10.0 0 .0 - Kerala 0.30.10.00.00.00.0 0.0 - Karnata a 0.40.20.10.20.20.2 0.2 -Others 0. 00.20.10.10.00.0 0.0 Gujarat 5.65.46.26.76.67.8 9.2 Adjusted surplus/(deficit) ( 0.0)(0.0)(0.0)0.0 (0.5)4.7 3.0 Mar et shares of ey players Ultratech Cement 26%24%23%23%21%22% 24% Gujarat Ambuja 25%24%23%21%20%20% 20% Sanghi Industries L td. 0%0%9%13%12%14% 15% JK Corp. 5%8%7%7%9%9% 8% Grasim 11%11%10%9%9%9% 7% Binan i Cement 7%9%8%7%7%6% 7% Gujarat Sidhee Cement 8%7%8%6%7%9% 7% Saurashtra Cement 9%10%7%6%4%5% 8% JK Synthetics 3%4%2%3%2%2% 1% Prices in ey centres in the sta te (Rs/bag) Ahmedabad 145134126141162202 221 Surat 146134126146170202 222 Note Prices are wholesale prices for OPC-53 grade and are inclusive of excise, sal es tax and octroi. Source: CRISIL Research, CMA and Industry CRISIL RESEA RCH CEMENT ANNUAL REVIEW

C-33 Table 5: State profile - Haryana (million tonnes) 20 01-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 0.20.20.20.20.2 0 .2 0.3 Production 0.00.00.00.00.0 0.0 0.0 Consumption 3.33.43.74.24.9 5.6 7.0 Gr owth (per cent) -5.98.014.116.0 13.4 24.6 Gross surplus/(deficit) (3.3)(3.4)(3.7 )(4.2)(4.9) (5.6) (7.0) Inflows From other states (excluding Haryana) 3.33.43 .74.24.9 5.6 6.9 -Madhya Pradesh 0.30.30.40.60.8 1.0 1.1 - Rajasthan 2.62.62.73. 03.3 3.8 4.8 - Punjab 0.10.10.20.30.4 0.4 0.6 -Himachal Pradesh 0.40.40.30.30.5 0.4 0.5 Haryana ----- - - Mar et shares of ey players Grasim 14%15%16 %17%19% 18% 17% JK Synthetics 14%17%16%18%18% 20% 18% Shree Cement 14%16%17%17%1 6% 19% 24% Ambuja Cement Ltd 17%15%17%15%15% 14% 12% ACC 5%6%7%8%9% 6% 7% Birla Corp. 10%10%10%9%8% 8% 7% Binani Cement 8%8%7%6%6% 6% 5% JK Corp. 9%8%6%6%3% 3% 5% Prices in the ey centre in the state (Rs/bag) Karnal 142135138155166 214 2 30 Notes 1) Prices are wholesale prices for OPC-53 grade and include excise, sales tax and octroi. 2) Regional classification of states has changed from 2 001-02, due to the formation of a new state of Chattisgarh. Hence, figures f or the regions (East and West) for 2001-02 are not comparable with the earlier y ears, with respect to capacity, demand and production. Source: CRISIL Research, CMA and Industry C-34 CRISIL RESEARCH CEMENT ANNUAL REVIEW Ta ble 6: State profile - Karnata a (million tonnes) 2001-02 2002-03 2003-04 2004-0 5 2005-06 2006-07 2007-08 Capacity 9.79.910.210.210.711.0 12.4 Production 6.88.1 9.39.310.010.1 10.8 Consumption 6.27.18.27.69.411.1 11.8 Growth (per cent) -15.8 15.4-7.222.818.5 6.2 Gross surplus/(deficit) 0.61.01.01.70.6-1.0 -1.0 Inflows From other states (excluding Karnata a) 2.93.13.73.24.96.3 6.6 - Andhra Pradesh 2.42.73.02.74.25.2 5.4 - Tamil Nadu 0.20.30.50.60.50.7 0.8 - Others 0.40.20.10.0 0.30.4 0.4 Karnata a 3.24.04.64.34.54.8 5.2 Outflows To other states (excludin g Karnata a) 3.54.14.75.35.45.3 5.5 - Maharashtra 2.73.03.23.53.53.8 4.0 - Andhr a Pradesh 0.40.50.70.71.01.0 1.0 - Kerala 0.10.20.20.30.30.2 0.2 - Tamil Nadu 0. 10.20.30.40.30.2 0.1 - Goa 0.10.20.20.40.20.2 0.2 - Others 0.00.00.00.00.00.0 0. 0 Karnata a 3.24.04.64.34.54.8 5.2 Adjusted surplus/(deficit) (0.0)0.0 (0.0)(0.4 )0.1 (0.0) 0.0 Mar et shares of ey players ACC 21%23%22%22%19%16% 16% Grasim 18%20%21%20%18%18% 18% Ultratech Cement 15%13%11%11%13%12% 12% India Cements 12 %11%12%12%13%14% 13% Kesoram Inds. 8%8%9%9%8%8% 9% Zuari Inds. 7%7%7%7%7%8% 8% P enna Cement 4%5%5%0%6%5% 5% CCI 2%2%2%3%3%3% 3% Madras Cements 3%2%2%3%3%4% 4% M ysore Cement 3%3%3%3%3%2% 2% Prices in the ey centre in the state (Rs/bag) Ba ngalore 156139151159169224 251 Note Prices are wholesale prices for OPC-53 gra de and are inclusive of excise, sales tax and octroi. Source: CRISIL Research, CMA and Industry CRISIL RESEARCH CEMENT ANNUAL REVIEW C-35 Table 7: State pro file - Kerala (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2 007-08 Capacity 0.4 0.40.40.60.60.60.6 Production 0.4 0.40.50.60.70.60.6 Consump tion 4.6 5.45.86.16.57.07.1 Growth (per cent) - 17.78.64.37.07.32.2 Gross surplu s/(deficit) (4.2) (5.0)(5.4)(5.5)(5.8)(6.4)(6.6) Inflows From other states (e xcluding Kerala) 4.2 5.05.45.55.86.46.6 - Tamil Nadu 2.9 4.04.34.64.85.45.5 - An dhra Pradesh 0.8 0.70.80.70.70.80.8 - Gujarat 0.3 0.10.00.00.00.00.0 - Karnata a 0.1 0.20.20.30.30.20.2 Kerala 0.4 0.40.50.60.70.60.6 Outflows Kerala 0.4 0.4 0.50.60.70.60.6 Adjusted surplus/deficit 0.0 0.0 0.0 0.0 (0.0)(0.6)(0.6) Mar et shares of ey players India Cements 23% 21%21%20%20%19%20% Madras Cements 15% 17%18%17%16%19%19% Chettinad Cement 6% 11%11%13%13%15%16% ACC 13% 15%16%15%13%1 2%11% Malabar Cements 9% 8%8%9%11%9%8% Ultratech Cement 7% 9%9%9%8%5%4% Dalmia C ement 7% 7%7%7%8%12%12% Grasim 3% 4%3%3%3%4%4% Zuari Inds. 3% 3%3%3%3%3%3% Price s in ey centres in the state (Rs/bag) Calicut 175 152162172185222254 Note Pr ices are wholesale prices for OPC-53 grade and are inclusive of excise, sales ta x and octroi. Source: CRISIL Research, CMA and Industry C-36 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 8: State profile - Madhya Pradesh (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 16.016.216.217 .417.7 18.2 18.4 Production 14.815.415.016.217.4 18.9 19.7 Consumption 4.05.05.6 6.36.4 6.5 7.5 Growth (per cent) -23.811.113.01.3 2.2 15.0 Gross surplus/deficit 10.810.49.59.911.0 12.4 12.2 Inflows From other states (excluding Madhya Pra

desh) 1.31.62.12.61.8 1.5 1.6 - Rajasthan 0.50.50.60.60.7 0.6 0.8 - Gujarat 0.00 .20.10.10.0 0.0 0.0 - Chhattisgarh 0.60.50.60.80.4 0.4 0.3 - Maharashtra 0.10.50 .81.00.6 0.5 0.4 Madhya Pradesh 2.83.43.53.74.5 4.9 5.9 Outflows To other sta tes (excluding Madhya Pradesh) 11.111.010.611.612.0 13.2 13.0 - Uttar Pradesh 7. 47.36.96.66.0 6.9 6.9 - Uttaranchal 0.40.60.70.70.9 1.3 1.2 - West Bengal 0.20.2 0.20.30.6 0.3 0.2 - Bihar 0.91.11.11.61.9 1.7 1.7 - Maharashtra 0.10.00.00.00.0 0.0 0.0 - Assam 0.20.20.30.30.4 0.3 0.1 - Delhi 0.50.40.40.70.7 0.7 0.8 - Orissa 0.0---0.0 0.0 0.0 - Punjab 0.40.00.00.00.0 0.2 0.2 - Haryana 0.30.30.40.60.8 1. 0 1.1 - Gujarat 0.20.20.10.10.0 0.0 0.0 - Others 0.60.50.50.50.6 0.9 0.8 Madhya Pradesh 2.83.43.53.74.5 4.9 5.9 Adjusted surplus/deficit 0.91.10.90.90.8 0.7 0.8 Mar et shares of ey players Grasim 20%19%17%18%19% 16% 18% Jaipra ash Inds. 15%14%14%14%16% 18% 17% Century Textiles 7%8%8%8%12% 15% 14% ACC 9%11%11%11%11% 12% 12% Prism Cement 9%9%10%8%10% 10% 11% Mysore Cement 11%11%8%7%7% 7% 9% Ultr atech Cement 12%11%12%12%7% 5% 4% Birla Corp. 6%6%6%5%5% 4% 5% JK Synthetics 4%4 %4%4%4% 3% 4% Lafarge 3%3%3%3%3% 2% 1% Ambuja cement Ltd 1%3%5%5%3% 3% 2% Prices in the ey centre in the state (Rs/bag) Bhopal 129118116130145 194 216 Notes 1) Prices are wholesale prices for OPC-53 grade and include excise, sales tax and octroi. 2) Regional classification of states has changed from 2001-02, d ue to the formation of a new state of Chattisgarh. Hence, figures for the re gions (East and West) for 2001-02 are not comparable with the earlier years, wit h respect to capacity, demand and production. Source: CRISIL Researc h, CMA and Industry CRISIL RESEARCH CEMENT ANNUAL REVIEW C-37 Table 9: State profile - Maharashtra (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 9.110.811.512.012.012.0 12.1 Production 6.79.210.611.01 1.412.1 13.4 Consumption 13.214.214.715.916.818.2 20.6 Growth (per cent) 7.03.78 .05.98.4 13.0 Gross surplus/(deficit) (6.5)(5.0)(4.0)(4.8)(5.4)(6.1) (7.2) Inflo ws From other states (excluding Maharashtra) 7.36.46.17.17.68.1 9.0 - Karnata a 2.73.03.23.53.53.8 4.0 - Andhra Pradesh 1.71.11.11.61.81.9 1.8 - Gujarat 2.01 .71.31.51.92.0 2.6 - Madhya Pradesh 0.10.00.00.00.00.0 0.0 - Rajasthan 0.30.10.2 0.20.20.2 0.4 - Chhattisgarh 0.60.40.30.20.10.1 0.2 Maharashtra 6.07.88.68.89.21 0.1 11.6 Outflows To other states (excluding Maharashtra) 0.71.42.12.31.22.0 1.8 - Andhra Pradesh 0.40.60.60.60.80.9 0.9 - Tamil Nadu 0.00.00.00.00.00.0 0.0 - Madhya Pradesh 0.10.50.81.00.60.5 0.4 - Others 0.20.30.70.70.80.6 0.4 Maharash tra 6.07.88.68.89.210.1 11.6 Adjusted surplus/(deficit) (0.0)0.0 (0.0)(0.0)1.0 ( 0.0) 0.0 Mar et shares of ey players Ultratech Cement 25%24%21%21%21%21% 20% Ambuja cement Ltd 8%15%19%19%20%20% 21% ACC 14%15%15%14%15%14% 13% Grasim 15%15 %14%13%14%13% 11% Kesoram Inds. 9%9%9%9%8%10% 11% Orient Cement 7%7%7%7%7%7% 7% Century Textiles 8%6%7%7%6%6% 6% India Cements 5%3%3%4%4%4% 3% Indo Rama Cement 4%4%4%4%3%3% 3% Prices in ey centres in the state (Rs/bag) Mumbai 17015616217 2188261 271 Nagpur 137118126142151216 234 Pune 145125135150166268 276 Note Pri ces are wholesale prices for OPC-53 grade and are inclusive of excise, sales tax and octroi. Source: CRISIL Research, CMA and Industry C-38 CRISIL RESEARC H CEMENT ANNUAL REVIEW Table 10: State profile - Orissa (million tonnes) 200102 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 2.82.83.03.03.03.4 3 .6 Production 2.42.62.52.93.33.6 3.9 Consumption 2.93.53.43.94.14.4 4.7 Growth ( per cent) -17.8-2.214.47.46.9 6.5 Gross surplus/(deficit) (0.5)(0.8)(0.9)(0.9)(0 .8)(0.8) (0.8) Inflows From other states (excluding Orissa) 1.11.41.51.81.71. 8 1.9 - Madhya Pradesh 0.0---0.0- - - Andhra Pradesh 0.20.20.40.60.40.3 0.3 - Ch hattisgarh 0.91.11.01.11.31.4 1.6 Orissa 1.82.01.82.12.32.5 2.6 Outflows To o ther states (excluding Orissa) 0.60.60.60.81.01.2 1.0 - West Bengal 0.30.30.40.3 0.40.4 0.5 - Bihar 0.10.10.10.10.20.2 0.2 - Others 0.20.20.20.30.40.5 0.3 Orissa 1.82.01.82.12.32.5 2.6 Adjusted surplus/(deficit) 0.0 0.0 (0.0)(0.0)(0.2)(0.2) 0.0 Mar et shares of ey players OCL India 26%25%26%25%25%27% 25% Ultr atech Cement 22%22%20%19%21%20% 21% ACC 4%4%9%17%19%19% 19% Lafarge 6%7%8%8%10%1 0% 12% Century Textiles 6%6%6%6%8%7% 7% Grasim 5%5%5%5%5%6% 5% Ambuja cement Ltd 5%5%4%4%4%4% 4% India Cements 1%0%2%3%3%1% 1% My Home Industries 0%0%0%0%2%2% 2 % Prices in the ey centre in the state (Rs/bag) Bhubaneshwar 1341411411501582 16 229 Note Prices are retail prices and are inclusive of excise, sales tax

and octroi. Source: CRISIL Research, CMA and Industry ENT ANNUAL REVIEW

CRISIL RESEARCH CEM

C-39 Table 11: State profile - Punjab (million tonnes) 2001-02 2 002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 2.22.83.03.94.2 4.2 4.2 Production 1.92.93.33.84.5 4.7 4.7 Consumption 4.95.35.45.25.7 6.5 6.6 Growth (p er cent) -7.52.8-3.08.0 14.9 1.5 Gross surplus/(deficit) (3.0)(2.3)(2.1)(1.4)(1. 2) (1.8) (1.9) Inflows From other states (excluding Punjab) 3.43.03.23.02.9 3 .6 3.8 -Madhya Pradesh 0.40.00.00.00.0 0.2 0.2 - Rajasthan 1.31.31.41.31.0 1.4 1 .4 -Himachal Pradesh 1.71.71.71.71.9 2.0 2.2 Punjab 1.52.22.22.22.7 2.9 2.8 Outf lows To other states (excluding Punjab) 0.40.71.11.61.1 1.7 1.9 - Uttaranchal 0.00.10.10.20.1 0.1 0.1 - Delhi 0.00.00.10.20.3 0.2 0.2 - Jammu and Kashmir 0.2 0.20.20.30.4 0.5 0.5 -Haryana 0.10.10.20.30.4 0.4 0.6 - Chandigarh 0.00.10.10.10 .1 0.1 0.1 - Uttar Pradesh 0.10.10.40.40.3 0.4 0.4 - Others 0.00.00.10.10.1 0.0 0.0 Punjab 1.52.22.22.22.7 2.9 2.8 Adjusted surplus/(deficit) (0.0)0.0 (0.0)0.0 0.7 (0.0) 0.1 Mar et shares of ey players ACC 33%31%31%31%33% 31% 33% Ambuja cement Ltd 29%29%26%27%31% 29% 26% Grasim 10%16%17%17%18% 18% 18% Shree Cement 8%7%7%7%5% 7% 8% Birla Corp. 5%5%5%5%5% 4% 2% Prices in the ey centre in the state (Rs/bag) Bhatinda 151139147162166 225 231 Notes 1) Prices are wh olesale prices for OPC-53 grade and include excise, sales tax and octroi. 2) Regional classification of states has changed from 2001-02, due to the formation of a new state of Chattisgarh. Hence, figures for the regions (East and Wes t) for 2001-02 are not comparable with the earlier years, with respect to ca pacity, demand and production. Source: CRISIL Research, CMA and Industry C-40 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 12: State profile - Rajas than (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Ca pacity 17.118.418.919.520.322.1 24.8 Production 16.017.317.818.720.222.1 25.7 Co nsumption 5.26.26.67.08.39.1 10.3 Growth (per cent) -18.37.25.418.710.3 13.1 Gro ss surplus/deficit 10.811.111.211.712.013.0 15.4 Inflows From other states(ex cluding Rajasthan) 0.30.20.30.20.20.3 0.3 - Gujarat 0.20.20.10.10.10.0 0.0 - Mad hya Pradesh 0.10.10.10.10.10.3 0.3 Rajasthan 4.95.96.36.78.18.9 10.0 Outflows To other states (excluding Rajasthan) 11.111.311.511.912.213.2 15.8 - Delhi 2.3 2.42.72.72.42.0 2.3 - Uttar Pradesh 2.42.32.12.22.43.0 3.2 - Haryana 2.62.62.73. 03.33.8 4.8 - Gujarat 1.61.81.51.62.01.8 2.1 - Punjab 1.31.31.41.31.01.4 1.4 - M adhya Pradesh 0.50.50.60.60.70.6 0.8 - Maharashtra 0.30.10.20.20.20.2 0.4 -Other s 0.20.30.30.30.30.4 0.6 Rajasthan 4.95.96.36.78.18.9 10.0 Adjusted surplus/(def icit) (0.1)0.0 (0.0)0.0 (0.1)0.0 (0.0) Mar et shares of ey players Grasim 16 %16%15%15%16%17% 17% Ambuja cement Ltd 11%13%13%14%15%14% 14% Binani Cement 15%1 4%15%14%13%12% 12% JK Corp. 7%9%9%10%12%10% 10% Shree Cement 11%13%12%13%12%20% 22% JK Synthetics 12%12%13%12%11%9% 8% Birla Corp. 12%11%11%11%11%10% 10% Mangal am Cement 8%7%7%7%7%5% 5% Prices in the ey centre in the state (Rs/bag) Jaipu r 130118125148156213 219 Note Prices are retail prices and are inclusive of ex cise, sales tax and octroi. Source: CRISIL Research, CMA and Industry CRI SIL RESEARCH CEMENT ANNUAL REVIEW C-41 Table 13: State profile - Tamil Nadu (milli on tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 11.6 14.314.514.614.616.8 16.9 Production 9.211.712.312.614.317.2 17.9 Consumption 8. 39.19.19.011.112.8 14.5 Growth (per cent) -8.90.3-1.424.115.4 12.6 Gross surplus /(deficit) 0.82.63.23.63.24.3 3.5 Inflows From other states(excluding Tamil N adu) 2.52.02.02.02.62.9 3.2 - Andhra Pradesh 2.31.81.71.62.32.7 3.1 - Maharasht ra 0.00.00.00.00.00.0 0.0 - Karnata a 0.10.20.30.40.30.2 0.1 Tamil Nadu 5.87.07. 17.08.59.9 11.1 Outflows To other states (excluding Tamil Nadu) 3.34.65.15.45. 56.5 6.8 - Kerala 2.94.04.34.64.85.4 5.5 - Karnata a 0.20.30.50.60.50.7 0.8 - Po ndicherry 0.10.20.20.20.30.3 0.4 - Others 9.111.612.212.48.60.1 0.1 Tamil Nadu 5 .87.07.17.05.09.9 11.1 Adjusted surplus/deficit 0.0 0.1 0.1 0.2 0.3 0.8 (0.1) Ma r et shares of ey players India Cements 26%22%21%21%21%20% 22% Madras Cement s 17%17%17%17%19%19% 18% Dalmia Cement 7%8%8%8%8%12% 14% Chettinad Cement 8%11%1 0%12%12%11% 11% Ultratech Cement 11%9%8%8%5%7% 7% Grasim 7%7%8%7%8%7% 7% Penna C ement 3%3%4%0%6%6% 5% Zuari Inds. 6%7%6%6%5%5% 5% Tamil Nadu Cement 7%8%9%8%6%5%

5% Prices in the ey centre in the state (Rs/bag) Chennai 161143153160163223 258 Note Prices are wholesale prices and are inclusive of excise, sales tax and octroi. Source: CRISIL Research, CMA and Industry C-42 CRISIL RESEAR CH CEMENT ANNUAL REVIEW Table 14: State profile - Uttar Pradesh (million tonne s) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 4.24.85.56.8 7.3 7.3 7.4 Production 1.82.43.54.24.9 5.1 5.3 Consumption 12.012.713.414.114.2 15.9 16.3 Growth (per cent) -6.15.25.30.6 11.9 2.4 Gross surplus/(deficit) (10.2 )(10.3)(9.9)(9.9)(9.3) (10.8) (11.0) Inflows From other states (excluding Utt ar Pradesh) 10.210.410.010.09.0 10.3 10.5 -Madhya Pradesh 7.47.36.96.66.0 6.9 6. 9 - Rajasthan 2.42.32.12.22.4 3.0 3.2 -Himachal Pradesh 0.10.10.10.10.2 0.1 0.1 - Chhattisgarh 0.30.40.40.50.5 0.3 0.2 Uttar Pradesh 1.82.33.44.14.8 5.1 5.3 Out flows To other states (excluding Uttar Pradesh) 0.00.10.10.10.0 0.0 0.0 - Utt aranchal 0.0-0.10.10.1 0.0 0.0 - Others 0.00.10.00.00.0 0.0 0.0 Uttar Pradesh 1. 82.33.44.14.8 5.1 5.3 Adjusted surplus/(deficit) 0.0 0.0 (0.0)0.0 (0.4) (0.5) (0 .5) Mar et shares of ey players Jaipra ash Inds. 20%20%19%19%21% 21% 21% ACC 15%16%18%19%19% 20% 21% Birla Corp. 11%11%11%11%11% 11% 10% Century Textiles 13 %14%13%12%9% 9% 8% Prism Cement 10%9%8%7%7% 7% 7% Mysore Cement 7%8%7%7%7% 7% 7% Grasim 6%6%7%6%6% 6% 6% Prices in the ey centre in the state (Rs/bag) Luc no w 138129131152159 197 213 Notes 1) Prices are wholesale prices for OPC-53 gra de and include excise, sales tax and octroi. 2) Regional classification of st ates has changed from 2001-02, due to the formation of a new state of Chattisgar h. Hence, figures for the regions (East and West) for 2001-02 are not compar able with the earlier years, with respect to capacity, demand and production . Source: CRISIL Research, CMA and Industry CRISIL RESEARCH CEMENT ANNUAL REVIEW C-43 Table 15: State profile - West Bengal (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Capacity 2.33.13.13.13.5 4.1 5.1 Production 1.72.52.73.13.2 3.5 3.6 Consumption 5.95.65.86.26.6 6.9 7.3 Growth ( per cent) --5.12.77.65.9 5.1 5.0 Gross surplus/(deficit) (4.2)(3.1)(3.0)(3.1)(3. 3) (3.4) (3.7) Inflows From other states (excluding West Bengal) 4.43.33.43.6 3.4 3.4 3.7 - Jhar hand 1.11.21.21.11.1 1.1 1.3 - Chhattisgarh 2.71.51.61.71.4 1 .6 1.7 - Madhya Pradesh 0.20.20.20.30.6 0.3 0.2 - Bihar 0.00.00.00.00.0 0.0 0.0 - Orissa 0.30.30.40.30.4 0.4 0.5 West Bengal 1.62.32.42.62.8 3.4 3.5 Outflows To other states (excluding West Bengal) 0.10.20.40.50.3 0.1 0.1 - Bihar 0.00.00 .10.10.1 0.0 0.0 - Others 0.00.20.40.40.2 0.1 0.1 West Bengal 1.62.32.42.62.8 3. 4 3.5 Adjusted surplus/(deficit) 0.1 (0.0)(0.0)0.1 (0.2) (0.1) (0.1) Mar et shar es of ey players ACC 19%18%19%19%18% 16% 17% Lafarge 24%21%20%19%17% 17% 17% Ultratech Cement 10%13%13%13%16% 18% 17% Ambuja cement Ltd 13%15%15%15%15% 19% 20% Century Textiles 12%11%10%11%11% 7% 5% Birla Corp. 8%9%9%10%9% 9% 8% OCL Ind ia 3%3%3%3%4% 5% 6% Grasim 7%8%7%7%4% 6% 6% Jaipra ash Inds. 1%1%1%2%3% 2% 2% Pr ices in the ey centre in the state (Rs/bag) Kol ata 138150158174174 224 232 N ote Prices are wholesale prices and are inclusive of excise, sales tax and oct roi. Source: CRISIL Research, CMA and Industry This page is inten tionally left blan CRISIL RESEARCH CEMENT ANNUAL REVIEW C-45 Table 1: Fuel r eceipts Coal lin age Coal receipts1 Other receipts Lignite Total receipts Open mar et coal Coal (million tonnes) purchases imports 1992 -93 15.62 10.501.270.09 0.80 12.66 1993-94 15.68 10.340.860.12 0.70 12.02 1994-9 5 17.03 10.282.320.71 0.80 14.11 1995-96 18.03 10.062.801.30 0.80 14.96 1996-97 16.94 10.452.481.65 0.70 15.28 1997-98 17.10 9.611.623.52 0.42 15.17 1998-99 14. 11 8.240.774.66 0.20 13.87 1999-2000 13.80 9.010.636.04 0.05 15.73 2000-01 13.50 9.740.794.40 0.42 2 15.35 2001-02 15.11 11.090.873.37 0.96 2 16.29 2002-03 15.7 4 12.350.773.66 1.09 17.87 2003-04 16.09 13.341.033.18 1.41 18.96 2004-05 17.14 14.841.273.63 1.87 2 21.61 2005-06 17.10 14.811.553.40 2.16 21.92 2006-07 15.48 14.432.944.96 0.83 23.16 1 Receipts against lin age 2 Includes receipts of lignite and pet co e Note Receipts include captive power plant s. Source: CMA Table 2: Fuel consumption (million tonnes) Proces

s Captive power Total Coal Lignite 1992-93 11.00.6 0.512.1 1993-94 11.20 .7 0.812.8 1994-95 11.70.7 0.813.3 1995-96 12.50.8 1.014.2 1996-97 13.30.6 1 .115.0 1997-98 13.40.4 1.215.0 1998-99 12.50.2 1.414.0 1999-2000 13.60.1 1.81 5.4 2000-01 13.10.4 1 1.915.4 2001-02 12.81.0 1 2.015.8 2002-03 14.21.1 1 2.617. 8 2003-04 14.21.4 1 3.218.8 2004-05 15.01.87 1 3.621.2 2005-06 15.12.98 1 4.322. 4 2006-07 16.80.83 5.322.9 1 Includes lignite and pet co e Source: CMA 3. 0 Raw material C-46 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 3: Coal - Rece ipts to cement industry to total coal production (million tonnes) Coal productio n Coal receipts to the cement industry Percentage of coal receipts to the cement industry, to coal production Percentage of coal receipts to cement industry by rail Average wagon loading (FW/day) 1989-90 201.08.94.481.0850.0 1990-91 211.410 .04.776.0914.0 1991-92 229.310.54.672.0895.0 1992-93 238.310.54.475.0941.0 199394 246.010.34.278.0963.0 1994-95 253.810.34.176.0934.0 1995-96 270.110.13.769.08 25.0 1996-97 285.710.53.764.0799.0 1997-98 296.19.63.266.0731.0 1998-99 290.88.2 2.859.0525.0 1999-2000 299.39.03.062.0605.0 2000-01 309.89.73.165.0670.0 2001-02 323.011.13.470.0809.0 2002-03 324.212.43.868.0787.0 2003-04 356.213.33.767.0891 .0 2004-05 376.614.83.968.01,055.0 2005-06 407.014.83.671.01,100.0 2006-07 430.9 14.43.372.01,079.0 FW: Four-wheeler wagon Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-47 Table 4: Coal - Royalty (Rs/tonne of coal) Coal royalty 1 991 (August 1)1 70 19921 70 19931 70 1994 (October 11)2 75 1995'2 75 1996'2 75 1 997'2 75 1998 (March 31)2 75 1999 75 2000 75 2001 75 2002 (August 16) 90 2003 90 2004 90 2005 90 2006 90 2007 90 1 The royalty on D grade coal other than the co al from Singareni mines is Rs 45 per tonne 2 The royalty on D grade coal other t han the coal from Singareni mines, which is produced in Assam, is Rs 70 per t onne; while the run of mine excluding cess surcharge and other levies, coal prod uced in Assam is Rs 120 per tonne. In West Bengal, the royalty is Rs 4.5 per tonne. The coal royalty rates provided are for D grade slac coal from Singar eni mines. Source: CMA Table 5: Coal - Change in pithead prices (Rs/tonne of c oal) Pithead price December 28, 1991 458 February 17, 1993 512 June 19, 1993 533 June 17, 1994 563 January 9, 1996 590 March 15, 1997 857 October 29, 1998 1,069 March 31, 2000 937 April 10, 2001 983 March 31, 2003 983 March 31, 2004 983 Mar ch 31, 2005 983 March 31, 2006 983 March 31, 2007 1,130 Notes 1) Coal prices ar e for D-grade coal from Singareni Collieries. 2) Coal prices are as on March 31 , effective from April 10, 2001. Source: CMA C-48 CRISIL RESEARCH CEMENT ANNU AL REVIEW Figure 1: Coal - International prices and landed cost of imports 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 Nov-97 Sep-98 Jul-99 May-00 Mar-01 Jan-02 Nov-02 Sep-03 Jul-04 May-05 Mar-06 Jan-07 Nov-07 ($/tonne) 0 1,000 2,000 3,000 4 ,000 5,000 6,000 7,000 (Rs/tonne) Australia Landed cost Prices are average fob m onthly prices of coal imported from Australia. Source: World Ban Table 6: Gyps um - Domestic prices (Rs/tonne) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Atul 68 8155n.a.n.a.n.a. Fertilizer Corporation of India 406 269n.a.n.a.n.a.n.a. SRF 121 125250285233335 Tata Chemicals 475 424439561456424 n.a.: Not availabl e Source: CRISIL Research Table 7: Lignite - Domestic prices (Rs/tonne) 200 0-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 GMDC 446 483 49848954160263 7 NLC 765 864 1,0281,0631,2011,0821097 GMDC: Gujarat Mineral Development Corpora tion; NLC: Neyveli Lignite Corporation Source: CRISIL Research CRISIL RES EARCH CEMENT ANNUAL REVIEW C-49 Table 8: Company-wise coal consumption Units 199 9-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC Cals per g of clin er 794783765765759 736 736752 Ambuja Cement Eastern Cals per g of clin er 831857823851849 841 n.a.n.a. Andhra Cements per cent of clin er 2220201922 2 3 2525 Binani Cement tonnes per tonne of cement 0.110.110.110.100.10 0.10 n.a.0. 1 Birla Corp tonnes per tonne of cement 0.130.13n.a.n.a.n.a. n.a. n.a.0.11 Centu ry Textiles tonnes per tonne of cement 0.190.180.150.140.13 0.13 0.130.13 Chetti nad Cement1 tonnes per tonne of cement 11.0810.9812.8110.899.65 10.18 10.1810.42 Dalmia Cement tonnes per tonne of cement 0.120.120.110.100.10 0.10 0.100.11 DLF Cement Cals per g of clin er 733724735720- - -- Grasim tonnes per tonne of c

C-51 Table 10: Company-wise captive power gen erating capacity (MW) March 31, 2001 December 31, 2002 December 31, 2003 DG Thermal Total DG Thermal Total DG Thermal Total ACC 55.7 79.8 135.4 50. 380.0130.350.3125.0175.3 Andhra Cement 12.6 - 12.6 12.6-12.612.6-12.6 Binani C ement - 25.6 25.6 -25.625.6-25.625.6 Birla Corp 26.7 34.0 60.7 30.934.064.93 0.934.064.9 CCI 37.4 - 37.4 37.4-37.437.8-37.8 Century Cement 20.9 45.4 66.3 20.641.462.020.645.466.0 Chettinad Cement 12.2 - 12.2 12.2-12.212.2-12.2 Dalm ia Cement 12.8 - 12.8 12.8-12.812.8-12.8 DLF Cement 31.0 - 31.0 --0.0--0.0 G rasim 128.2 38.2 166.4 147.038.2185.2147.061.2208.2 Ambuja cement Ltd 96.1 96.1 116.915.0131.9118.155.0173.1 Gujarat Sidhee 0.2 - 0.2 0.2-0.2 0.2-0.2 HMP Cements - 10.5 10.5 -10.510.5-10.510.5 India Cements 103.5 - 103.5 87.887.887.8-87.8 Jaipra ash Inds 63.9 - 63.9 --0.059.4-59.4 Jaipur Udyog - - -

ement 0.130.120.130.120.13 0.12 0.120.13 Ambuja Cement Ltd Cals per g of clin er 753730742729728 715 730742 Gujarat Sidhee Cement Cals per g of clin er 7898 15808813815 813 792798 India Cements tonnes per tonne of cement 0.160.140.140.14 14.51 14.6 14.6n.a. JK Corp.2 tonnes per tonne of cement 0.120.110.10-0.09 0.09 0.080.08 JK Synthetics Cals per g of clin er 846840832-803 787 n.a.n.a. JK Uda ipur Udyog tonnes per tonne of cement 0.15-0.15-n.a. n.a. n.a.n.a. Kanoria Inds3 Cals per g of clin er 18.0716.8326.03-- - -- KCP tonnes per tonne of cement 0 .160.140.140.160.15 0.16 0.160.16 Madras Cements per cent of clin er 14.2314.191 4.6211.3412.47 11.46 11.460.01 Mangalam Cement4 tonnes per tonne of cement 0.150 .160.180.350.34 0.32 0.340.34 Narmada Cement5 Cals per g of clin er 8067877508 10804 0.13 0.13n.a. OCL India tonnes per tonne of cement 0.140.140.120.110.10 0. 11 0.110.1 Panyam Cements tonnes per tonne of cement 0.210.210.210.200.25 0.22 0 .250.28 Prism Cement per cent of clin er 16.1316.3115.5414.815.97 16.89 16.54n.a . Priyadarshini tonnes per tonne of cement 0.180.170.170.180.18 n.a. n.a.n.a. Sa urashtra Cement tonnes per tonne of cement 0.140.160.14-- - -- Shree Cement per cent of clin er 12.349.479.478.268.84 9.02 10.3711.73 Shree Digvijay6 KCals per g of clin er 769 1,072 1,097 2,206 815 786 779 781 Sri Vishnu Cement tonnes per tonne of cement 0.190.170.170.160.17 0.18 0 .190.21 Ultratech Cement Ltd tonnes per tonne of cement 0.140.130.130.130.13 0.1 3 0.130.13 Zuari Inds tonnes per tonne of cement 0.14n.a.n.a.n.a.n.a. n.a. n.a.n .a. n.a.: Not available 1 From 2000-01, the figures are a percentage of coa l per unit of clin er 2 Figures for 1999-2000 are for a period of 18 month s with year ending September 3 From 1997-98, figures are a percentage of co al per unit of clin er 4 Figures for 2000-01 are for the October 2000 to S eptember 2001 period 5 Figures for 2003-04, are for the March 2002 to Sept ember 2004 period 6 Figures for 2004-05, are for the period of 6 months wi th year ending March. ACC: From 2005-06 figures are as of December 2006, An dhra Cements: Figures are of September 2006 Source: CRISIL Research C-50 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 9: State-wise trends in power tariffs (paise/ Wh) Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2 006 Mar 2007 Andhra Pradesh 412.1 435.0 435.0416.0405.0395.0370.0 336.0 Assam 32 7.0 327.0 327.0327.0327.0369.0369.0 369.0 Bihar-BSEB 359.3 397.4 397.4445.2445.2 445.2445.2 445.2 Bihar-DVC 362.9 270.8 300.8n.a.n.a.n.a.n.a. n.a. Chhattisgarh - 434.6 434.6434.6434.6438.6451.8 446.2 Delhi 375.2 413.8 413.8453.8453.8579.056 2.1 562.1 Gujarat 535.2 581.6 581.6584.0584.0584.0606.9 543.6 Haryana 442.2 482. 0 482.0515.9515.9464.0515.9 515.9 Himachal Pradesh 269.0 308.0 308.0237.0240.031 4.6282.3 282.3 Karnata a 420.0 450.0 450.0456.0489.3489.3487.2 487.2 Kerala 241. 7 241.7 301.5351.5351.5351.5351.5 351.5 Jhar hand - 441.0 443.0443.0443.0432.043 2.0 432.0 Madhya Pradesh 434.6 434.6 458.8480.2480.2437.4450.3 444.7 Maharashtra 401.1 400.1 388.5364.4346.0361.0410.0 548.0 Meghayala 200.0 200.0 200.0200.0244 .0266.0266.0 266.0 Orissa 310.0 350.0 350.0350.0350.0350.0353.2 353.2 Punjab 286 .0 286.6 286.6286.6372.8364.7406.8 388.7 Rajasthan 395.0 430.0 444.0445.0444.045 9.0459.0 459.0 Tamil Nadu 406.4 406.4 415.8433.7427.5427.5437.4 445.5 Uttar Prad esh 429.0 487.4 487.4487.4433.0409.6386.3 395.6 West Bengal 262.9 295.5 299.4302 .7303.0311.7335.3 323.7 Note BSEB: Bihar State Electricity Board; CAGR: Comp ounded annual growth rate; DVC: Damodar Valley Corporation Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW

--0.0--- J K Corp - - - - - --23.5-23.5 JK Synthetics 11.5 19.0 30.5 18.523.04 1.518.523.041.5 JK Udaipur Udyog 13.0 - 13.0 13.0-13.013.0-13.0 Kalyanpur Ceme nt 2.5 - 2.4 3.2-3.22.4-2.4 Kanoria Inds 8.0 - 8.0 8.0-8.08.0-8.0 KCP 9.9 9.9 9.9-9.99.9-9.9 Kesoram Inds 26.3 30.7 57.0 26.330.757.026.330.757.0 Kist na - 4.0 4.0 -4.04.0-4.04.0 Lafarge 16.0 - 16.0 43.0-43.043.4-43.4 Madras Ce ments 45.1 - 45.1 42.0-42.0 50.7-50.7 Continued C-52 CRISIL RESE ARCH CEMENT ANNUAL REVIEW continued (MW) December 31, 2005 Decembe r 31, 2006 DG Thermal Total DG Thermal Total ACC 48.4 140.0 188.4 46.214 0.0186.2 Andhra Cement 12.6 - 12.6 12.6-12.6 Binani Cement - 25.6 25.6 -25.6 25.6 Birla Corp 31.5 34.0 65.5 31.757.088.7 CCI 38.8 0.0 38.8 38.8-38.8 Cent ury Cement 20.6 55.4 76.0 20.664.785.3 Chettinad Cement 9.4 15.0 24.4 9.415. 024.4 Dalmia Cement 12.8 - 12.8 12.827.039.8 DLF Cement - - 0.0 --0.0 Grasim 108.4 73.7 182.1 126.473.7200.1 Gujarat Ambuja 118.1 85.0 203.1 129.2195.03 24.2 Gujarat Sidhee 0.2 - 0.2 30.0-30.0 HMP Cements - 10.5 10.5 -10.510.5 I ndia Cements 79.4 - 79.4 79.4-79.4 Jaipra ash Inds 59.4 - 59.4 59.4-59.4 Jai pur Udyog - - - --0.0 J K Corp 23.5 - 23.5 23.5-23.5 JK Synthetics 24.0 15. 5 39.5 24.015.539.5 JK Udaipur Udyog 13.0 - 13.0 13.0-13.0 Kalyanpur Cement - - - 2.4-2.4 Kanoria Inds 8.0 - 8.0 --0.0 KCP 10.3 - 10.3 10.3-10.3 Kesora m Inds 20.0 40.2 60.2 12.040.252.2 Kistna - 4.0 4.0 -4.04.0 Lafarge 34.0 34.0 34.0-34.0 Madras Cements 44.7 36.0 80.7 44.736.080.7 continu ed CRISIL RESEARCH CEMENT ANNUAL REVIEW C-53 continued (MW) March 31, 2001 December 31, 2002 December 31, 2003 DG Thermal Total DG Thermal T otal DG Thermal Total Malabar Cements 2.5 - 2.5 2.5-2.52.5- 2.5 Mangalam Cemen t 11.7 - 11.7 11.7-11.711.7- 11.7 Modi Cement - - - --0.0-- - Mysore Cement 39.5 29.2 68.7 39.629.268.839.629.2 68.8 Narmada Cement - - - --0.0-- - Orie nt Cement 22.9 - 22.9 22.9-22.923.5- 23.5 Orissa Cement 20.9 - 20.9 20.9-20. 920.9- 20.9 Panyam Cements 12.4 - 12.4 12.4-12.412.4- 12.4 Prism Cement 30.0 - 30.0 36.0-36.036.0- 36.0 Priyadarshini 13.0 - 13.0 12.0-12.013.0- 13.0 Raas i Cement - - - --0.0 -- - Raymond Cement 27.0 - 27.0 --0.0-- - Saurashtra Cement 11.7 - 11.7 11.7-11.711.7- 11.7 Sevalia - - - --0.0-- - Shree Cement 21.1 - 21.1 25.125.125.138.5 63.6 Shree Digvijay - - - --0.0-- - Sone Valley - 12.5 - -12.512.5-12.5 12.5 Sri Vishnu Cement - - - --0.0-- - Tamil Nadu Ce ment 10.0 - 10.0 10.0-10.010.0- 10.0 Tisco - - - --0.0-- - Ultratech Cement Ltd 84.1 100.0 184.1 85.7100.0185.785.7100.0 185.7 Zuari Cement 25.0 - - 44 .9-44.9 44.9- 44.9 Total 1,065.3 428.9 1,456.5 1,027.9444.11,472.0 1,122.359 4.6 1,716.9 continued C-54 CRISIL RESEARCH CEMENT ANNUAL REVI EW continued (MW) December 31, 2005 December 31, 2006 DG The rmal Total DG Thermal Total Malabar Cements 2.5 - 2.5 2.5-2.5 Mangalam Cemen t 11.7 - 11.7 11.7-11.7 Modi Cement - - - --0.0 Mysore Cement 33.8 29.2 63. 0 34.029.263.2 Narmada Cement - - - --0.0 Orient Cement 23.5 - 23.5 23.5-23 .5 Orissa Cement 20.9 - 20.9 20.9-20.9 Panyam Cements 12.4 - 12.4 12.4-12.4 Prism Cement 36.0 - 36.0 36.0-36.0 Priyadarshini 12.5 - 12.5 13.9-13.9 Raasi Cement - - - --0.0 Raymond Cement - - - --0.0 Saurashtra Cement 11.7 - 11 .7 11.7-11.7 Sevalia - - - --0.0 Shree Cement 21.1 38.5 59.6 20.344.564.8 S hree Digvijay - - - --0.0 Sone Valley - 12.5 12.5 -12.512.5 Sri Vishnu Cemen t - - - --0.0 Tamil Nadu Cement 4.0 - 4.0 4.0-4.0 Tisco - - - --0.0 Ultrat ech Cement Ltd 79.7 97.2 176.9 80.597.2177.7 Zuari Cement 44.2 - 44.2 45.5-4 5.5 Total 1,090.6 716.3 1,806.9 1,077.1887.61,964.7 DG: Diesel generation Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-55 Table 11: Cem ent - Production by use of captive power Units produced by Cement production f rom Proportion of cement manufactured captive sets (million Wh) captive power (million tonnes) using captive power (per cent) 1982-83 94.0 0.83.4 1983-84 251. 9 2.17.9 1984-85 391.2 3.311.0 Seventh plan 1985-86 634.9 5.316.5 1886-87 646 .2 5.415.5 1878-88 795.7 6.617.7 1988-89 756.1 6.315.1 1989-90 854.1 7.116.6 Ann ual plan 1990-91 930.1 7.816.9 1991-92 1,166.3 9.719.2 Eighth plan 1992-93 1,100.0 9.218.1 1993-94 1,248.6 10.519.2 1994-95 1,481.2 12.321.2 1995-96 2,10

9.1 17.627.2 1996-97 2,346.5 19.627.9 Ninth plan 1997-98 2,575.9 21.526.6 199 8-99 3,192.9 26.632.6 1999-2000 4,298.7 37.439.7 2000-01 4,881.0 42.445.3 2001-0 2 4,866.5 42.341.3 Tenth plan 2002-03 5,363.9 46.641.9 2003-04 5,298.1 46.13 9.2 2004-05 6,396.7 60.947.8 2005-06 7,835.6 74.652.6 2006-07 P 8,636.1 82.352. 8 P : Provisional Source: CMA This page is intentionally left b lan CRISIL RESEARCH CEMENT ANNUAL REVIEW C-57 Table 1: Cement - Excise duty (Rs/tonne) Rate Large cement plants Mini cement plants White cement (per cent) 1993-94 Specific 330n.a 40 1994-95 Specific 330180 40 1995-96 Specific 350180 40 1996-97 Specific 350180 30 1997-98 Specific 350200 25 1998-99 Specific 350200 2 5 1999-2000 Specific 3501 200 24 2000-01 Specific 3501 200 242 2001-02 Specific 3501 200 322 2002-03 Specific 4003 200 162 2003-04 Specific 4003 250 162 2004-05 Specific 4084 250 16.3 2005-06 Specific 4084 350 16.3 2006-07 Specific 4084 350 16.3 2007-08 (Retail prices <= Rs190/- per 50 g bag) Specific 360.55 226.65 16 .5 2007-08 (Retail prices > Rs190/- per 50 g bag) Specific 6185 3815 16.5 200809 (Retail prices <= Rs190/- per 50 g bag) Specific 360.55 226.65 16.5 2008-09( Retail prices > Rs190/- per 50 g bag) Specific 6185 3815 16.5 1 Excise duty is Rs 332 per tonne of portland cement, bagged outside the factory premise 2 The a batement rate is 40 per cent 3 Excise duty is Rs 382 per tonne of portland c ement, bagged outside the factory premises 4 Education cess of 2 per cent has been added to the excise duty for 2004-05 as per the Budget provisions 5 In the Union Budget 2007-08, the cess has been increased to 3 per cent whic h has been added to the excise duty for 2007-08 Source: CRISIL Research 4.0 Tariffs C-58 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 2: Cement - Customs duty (per cent) BD SD AD Surcharge SACD 1994-95 65 -- - - 1995-96 50 -- - - 1996 -97 402 - - - 1997-98 402 - - - 1998-99 4023- 4 1999-2000 40 -- - 4 2000-01 35-10 4 2001-02 25--- 4 2002-03 20--- 4 2003-04 30--- 5 2004-05 20--2 5 2005-06 15-2 4 2006-07 0--0 4 2007-08 0--0 0 AD: Additional duty; BD: Basic duty; SACD: Sp ecial additional customs duty; SD: Special duty Note Education cess of 2 per cent has been added to the excise duty for 2004-05 and 2005-06, as per the Budge t provisions. Source: CRISIL Research Table 3: Cement - State-wise sales ta x (per cent) 1993-94 1995-96 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2 004-05 2005-06 2006-07 Andhra Pradesh 15.2 16.0 16.0 16.016.016.016.016.016.0 12 .5 12.5 Delhi 8.0 8.0 10.0 10.08.08.08.88.08.0 12.5 12.5 Gujarat 15.0 17.0 15.0 15.08.88.88.88.88.0 8.0 12.5 Karnata a 17.8 16.6 18.8 18.818.818.815.015.020.0 1 2.5 12.5 Kerala 13.8 13.8 13.8 13.815.017.317.317.317.3 12.5 12.5 Maharashtra 12 .7 13.0 13.0 15.315.315.315.815.815.8 12.5 12.5 Madhya Pradesh 12.0 10.0 11.5 11 .513.813.813.813.813.8 13.8 12.5 Orissa 13.2 13.2 13.8 13.813.813.813.213.213.2 12.5 12.5 Rajasthan 16.0 16.0 17.9 17.918.418.418.418.419.0 28.0 12.5 Tamil Nadu 1 16.3 16.1 18.5 18.518.518.519.319.316.8 14.0 12.5 West Bengal 11.2 16.5 17.3 1 7.315.015.017.320.720.3 12.5 12.5 1 For 2003-04 and 2004-05, the rate applies to the selling price of upto Rs 135 PPC and Rs 145 OPC per bag. Notes 1) The sales tax is the total tax payable (including surcharge). 2) For a sell ing price of above Rs 135 PPC and Rs 145 OPC per bag, the rate is 27.7 per cent. Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-59 Table 1: Ce ment - Aggregate producer mar et shares (per cent) 1999-2000 2000-01 2001-02 200 2-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACC 11.08 11.41 12.2112.7813.4713.6 513.2012.42 11.94 Grasim 10.04 10.89 10.2610.9010.9510.8410.7510.28 9.65 Ambuja Cement Ltd 7.17 8.36 8.749.5110.1010.369.969.88 10.30 Ultratech Cement Ltd 11.6 1 11.47 11.0610.5410.079.939.008.99 8.99 India Cements 7.94 7.61 6.305.395.445.2 36.045.82 5.51 Century Textiles 5.18 5.48 5.054.784.775.044.894.51 4.11 Jaipra a sh Inds 3.89 3.90 3.943.833.633.954.184.30 4.26 Birla Corp. 3.95 4.08 4.014.064. 094.023.743.50 3.14 Lafarge 0.87 2.30 3.763.393.243.573.323.11 2.98 Madras Cemen ts 2.91 2.89 3.073.143.042.933.203.59 3.34 JK Synthetics 2.17 2.10 2.352.692.632 .752.592.44 2.25 Shree Cement 2.45 2.55 2.442.542.522.512.363.22 3.78 Kesoram In ds 2.49 2.58 2.292.302.532.582.282.36 2.67 Zuari Inds 1.56 1.56 1.712.112.102.09

2.062.08 1.96 JK Corp 2.00 1.94 1.922.011.982.021.971.89 2.04 Chettinad Cement 0 .91 0.86 0.921.561.691.821.751.79 1.73 Binani Cement 1.80 2.02 1.951.961.941.851 .721.62 1.77 Penna Cement - - 0.820.941.010.001.721.79 1.67 Orient Cement 1.38 1 .32 1.441.411.501.661.571.46 1.44 Prism Cement 1.87 1.86 1.871.711.681.511.521.4 7 1.44 Mysore Cement 2.01 1.88 1.801.911.751.681.521.43 1.32 My Home Industries - - ----1.21.15 1.50 Mangalam Cement 1.43 1.30 1.381.311.181.131.190.95 0.89 Dal mia Cement 1.08 1.08 1.011.111.111.061.161.82 1.97 OCL India 0.92 1.05 1.061.06 1.041.121.161.27 1.19 Sanghi Industries - - --0.620.970.810.93 1.50 Priyadarshin i 0.85 0.78 0.730.640.260.650.711.08 0.96 CCI 0.72 0.32 0.600.490.520.670.700.69 0.54 Tamil Nadu Cement 0.80 0.84 0.710.730.760.670.570.49 0.40 Malabar Cements 0.47 0.49 0.400.380.410.460.510.42 0.34 Gujarat Sidhee Cement 0.85 0.68 0.750.50 0.520.430.480.60 0.75 KCP 0.52 0.40 0.370.460.410.400.390.41 0.43 Andhra Cement s 0.68 0.73 0.810.680.570.620.240.41 0.67 Indo Rama Cement - 0.37 0.500.510.520. 510.360.37 0.40 Kalyanpur Cement 0.61 0.65 0.620.520.300.300.330.39 0.32 Shriram Cements 0.30 0.31 0.280.270.260.270.290.25 0.22 Saurashtra Cement 1.02 0.73 0.8 50.680.500.420.290.43 0.83 J and K 0.11 0.13 0.140.110.100.120.120.10 0.09 Kanor ia Inds 0.27 0.19 0.190.150.170.110.080.01 0.00 Mawnluh Cherra 0.13 0.13 0.100.1 00.090.080.070.07 0.05 Panyam Cements 0.23 0.12 0.140.030.090.060.010.00 0.25 Id col Cement 0.58 0.78 0.710.790.45--- - DLF Cement 1.41 - ------ - JK Udaipur Ud yog 0.63 0.48 0.720.00---- - Raymond Woollens 1.77 1.39 ------ - Sri Vishnu Ceme nt 0.41 - ------ - Tisco 0.95 - ------ - Total 100.0 100.0 100.0100.0100.0100.01 00.0100.0 100.0 Note Mar et share is calculated based on consumption. Source: CMA 5.0 Mar et share and financials C-60 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 2: Cement - Region-wise mar et shares (per cent) 1 999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 North 3 1.3 31.2 31.831.731.931.730.430.7 30.4 ACC 14.5 15.6 15.415.416.216.316.916.5 17 .0 Ambuja cement Ltd 8.7 13.2 13.012.913.514.215.014.1 13.5 Grasim 9.9 9.9 10.41 2.012.112.112.112.1 12.4 Birla Corp 9.0 9.2 8.78.58.78.68.48.1 7.3 Jaipra ash In ds 8.6 8.7 9.18.67.88.08.69.4 9.0 Shree Cement 7.6 7.9 7.48.07.97.97.810.5 12.6 West 27.8 28.0 25.425.025.126.124.223.6 24.5 Ultratech Cement Ltd 23.9 23.3 23.2 21.820.219.518.118.3 18.2 Ambuja cement Ltd 12.4 11.5 11.915.317.216.316.316.5 1 6.8 Grasim 16.3 16.7 14.714.613.613.713.312.5 10.9 ACC 7.9 8.2 9.110.410.09.710. 19.8 9.1 Century Textiles 6.8 7.1 5.54.84.95.06.06.3 6.3 East 13.0 14.3 16.515.8 15.416.816.716.1 15.4 Lafarge 5.7 12.8 20.418.718.918.317.318.0 18.7 ACC 17.2 15 .3 15.414.316.217.317.216.7 16.9 Century Textiles 10.5 11.4 11.111.311.512.813.7 11.0 9.9 Ultratech Cement Ltd 10.4 11.5 12.813.112.912.512.714.2 13.2 Ambuja cem ent Ltd 6.5 5.4 8.07.97.87.87.38.6 9.2 Grasim 5.7 6.2 6.86.97.27.28.37.7 7.1 Sou th 27.9 26.5 26.327.627.725.428.729.5 29.7 India Cements 25.9 25.4 21.418.318.11 8.118.817.7 17.3 ACC 7.5 7.7 9.411.011.912.09.68.0 7.3 Madras Cements 10.3 10.8 11.511.310.811.210.911.7 11.3 Ultratech Cement Ltd 12.2 11.8 11.110.29.89.88.27. 8 7.3 Grasim 6.0 8.4 8.08.69.28.88.68.1 7.8 Source: CRISIL Research CRI SIL RESEARCH CEMENT ANNUAL REVIEW C-61 Table 3: Cement - Net sales of companies (R s million) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 23,058 25,57927,84727,87831,91237,860 41,95356,631 Andhra Cement 961 1,2891,491 1,1581,0721,362 n.a.1,028 Ambuja Cement Rajasthan1* 1,519 2,5352,3632,532n.a.n.a . n.a.n.a. Binani Cement 2,756 3,3993,6643,6623,7434,383 4,9036,781 Birla Corp 8,684 8,7689,5879,42710,46112,298 12,08816,212 Century Textiles 21,499 22,11 922,43122,41222,95325,915 26,16532,160 Chettinad Cement 1,950 1,9012,0712,6953,2 654,020 5,2147,724 Dalmia Cement 3,173 3,6033,6493,8443,6494,460 5,6839,816 Gras im 42,743 44,61543,74045,96052,11161,821 65,97785,789 Ambuja cement Ltd 11,159 12,68513,82817,39119,60725,955 25,96562,262 India Cements 11,684 12,3169,9678, 38810,02911,480 15,27922,519 JK Corp3 n.a. 8,4283,5613,7465,6184,893 5,8438,433 JK Synthetics 4,170 4,1195,0595,9836,2674,579 n.a.n.a. Jaipra ash Industries4 12,280 16,24615,53925,01524,248n.a. n.a.n.a. KCP 1,073 1,1461,1231,1371,1871,439 1,7482,621 Kanoria Inds5 249 274321213274n.a. 17244 Kesoram Inds 6,083 11,1641 1,22511,62213,14414,324 16,24622,174 Madras Cements 5,053 6,0756,9476,1746,8607, 287 9,98915,730 Mangalam Cement6 2,235 9452,5632,0892,7343,008 3,0102,253 Mysore Cement7 2,512 3,5673,9594,3523,4374,064 4,3373,952 OCL India 2,677 2,7722,5773,

1063,8304,845 5,9628,074 Panyam Cements 827 619677457507n.a. 109944 Prism Cement 8 2,840 3,9903,5123,1623,6674,248 4,2497,555 Priyadarshini 1,587 1,9782,111n.a.1 ,7116 n.a.n.a. Raasi Cement 3 ----- n.a.n.a. Shree Cement9 4,093 4,6613,3284,833 4,9346,013 6,93313,995 Shree Digvijay10 2,045 2,2711,7491,8931,401898 2,1652,555 Sri Vishnu Cement 1,081 1,2061,0229681,0231,287 2,0542,123 Ultratech Cement Ltd . 68,869 70,395--22,56426,676 32,94448,943 Zuari Inds. 13,221 12,10112,29011,740 12,12117,796 21,91324,036 n.a.: Not available 1 Financials are for an 18-mon th period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Jaipra ash Industries has been merged with Jaipra ash Associates from 2002 -03 5Financials are for a 15-month period, from April 1998 to June 1999. Fina ncials for 1999-2000, are for a 9-month period from July 1999 to March 2000 6 Financials for 2000-01 are for the year ended September 2001 7Financial s are for a 15-month period, from April 1997 to June 1998. Financials for 1998-9 9 are for the year ended June 1999. Financials for 1999-2000, are for a 9-mon th period from July 1999 to March 2000 8 Financials are for a 15-month period , from April 2000 to June 2001 9 Financials for 1997-98 are for 15 months fro m April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June. The figures for 2001-02 figures are for 9 months, from July 2001 to Marc h 2002. 10 Financials for 1998-99, are for an 18-month period from April 199 8 to September 1999. * Ambuja Cement Rajasthan has merged been with Gujarat A mbuja Cement Ltd. Note Net sales excludes indirect taxes. Source: CRIS IL Research C-62 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 4: Cement Operating profit margins of companies (per cent) 1999-2000 2000-01 2001-02 2002 -03 2003-04 2004-05 2005-06 2006-07 ACC 9.8 14.616.615.017.019.2 18.0 29.3 Andhr a Cement -9.5 9.233.56.8 -9.3 16.3 n.a. n.a. Ambuja Cement Rajasthan1* -5.5 9.04 19.417.7 n.a. n.a. n.a. n.a. Binani Cement 24.9 26.330.026.829.725.3 27.6 34.7 Birla Corp 5.4 7.57.47.89.911.8 14.9 30.7 Century Textiles 14.7 14.813.814.6 12.811.8 12.0 18.9 Chettinad Cement 32.0 28.524.725.025.323.6 22.6 30.8 Dalmia C ement 23.5 24.523.419.521.917.9 15.0 25.7 Grasim 17.3 20.619.521.428.928.5 21.3 27.8 Ambuja cement Ltd2 63.2 37.734.531.933.931.0 27.9 34.3 India Cements 22. 9 26.329.216.514.718.9 17.1 32.6 JK Corp3 n.a. 20.87.819.814.316.8 20.8 30.2 JK Synthetics 9.5 4.59.710.16.999.2 n.a. n.a. KCP 11.6 22.425.011.912.517.3 15.0 30.8 Kanoria Inds4 -12.4 -9.6-0.7-40.2-13.9-30.6 n.a. -86.2 Kesoram Inds 18.9 1 6.213.211.513.08.8 8.2 18.5 Madras Cements 30.1 29.026.025.124.622.6 21.5 35.7 M angalam Cement5 10.7 -26.410.25.8 -1.8 63.7 11.6 30.0 Mysore Cement6 -1.8 3.27.7 6.35.99.0 3.7 13.5 Narmada Cement 3.3 3.55.9n.a. 3.3 -3.5 n.a. n.a. OCL India 14 .0 12.212.915.918.115.9 14.6 20.1 Panyam Cements 8.5 -0.8-24.5-9.3 -34.0 -41.2 222.2 18.7 Prism Cement7 20.7 25.223.217.4 21.3 23.8 22.8 43.6 Priyadarshini 19. 9 25.314.1 n.a. 52.1 -125.8 n.a. n.a. Shree Cement8 22.0 21.525.122.526.029.1 28 .6 42.4 Shree Digvijay9 -38.0 7.45.612.56.92.2 19.0 22.3 Sri Vishnu Cement 5.7 1 5.812.60.94.55.4 10.9 25.5 Ultratech Cement Ltd. - ---18.413.6 17.1 29.1 Zuari I nds. 8.8 6.55.77.67.35.7 3.8 3.8 n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 a re for the year ended in June 2 Financials are for the year ended in June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 month period from July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-mont h period from July 1999 to March 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002. 9 Financials for 1998-99, are for an 18 month period from April 1998 to Sep tember 1999. * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Ce ment Ltd. Note Operating profit margin has been calculated as profit

before depreciation, interest and tax divided by net sales. Source: CRISIL Rese arch CRISIL RESEARCH CEMENT ANNUAL REVIEW C-63 Table 5: Cement - Net pr ofit margins of companies (per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2 004-05 2005-06 2006-07 ACC -2.7 2.24.73.76.310.0 17.3 16.9 Andhra Cement -29.9 5.324.11-7.0-26.21.77 n.a. -55.2 Ambuja Cement Rajasthan1* -44.3 -23.5-13.2-10.1 n.a.n.a. n.a. n.a. Binani Cement -13.1 -4.31.70.31.11.47 10.8 14.4 Birla Corp -4.4 -1.6-0.10.44.17.06 10.4 18.8 Century Textiles 1.3 2.40.53.13.34.2 4.2 8. 9 Chettinad Cement 3.3 3.9-5.6-2.64.36.96 7.68 13.9 Dalmia Cement 6.7 8.07.05.26 .47.23 14.93 7.7 Grasim 5.5 8.56.98.015.014.3 13.1 14.7 Ambuja cement Ltd2 38.3 15.212.912.817.218.0 18.0 20.8 India Cements 1.7 3.9-0.3-24.0-9.60.4 2.97 20. 8 JK Corp3 n.a. -22.0-20.6 -5.5 -5.65.3 9.5 19.7 JK Synthetics -11.8 -16.1-7.3 2.5-0.991.0 n.a. n.a. KCP -8.5 5.07.0-1.61.06.7 10.0 17.1 Kesoram Inds 2.6 4.23 .72.54.82.3 2.8 10.9 Madras Cements 7.5 7.33.72.14.97.7 7.9 19.3 Mangalam Cement 4 -7.0 -48.8-8.3-12.1-26.854.6 5.6 20.5 Mysore Cement5 -23.4 -17.1-5.1-5.6-10.56.1 -20.7 -3.3 Narmada Cement -12.8 -10.1-7.4n.a.-22.9-32.8 n.a. n.a. OCL India 2.2 2.22.65.95.95.8 6.3 6.8 Panyam Cements -8.4 -17.9-40.0-27.8 -54.5 -70.6 -311 .9 10.7 Prism Cement6 -9.8 -4.2-2.5-9.9 -1.6 6.1 6.1 25.1 Priyadarshini -5.5 1.3 -5.7 28.8 -175.8 n.a. n.a. Shree Cement7 3.8 5.60.41.62.64.8 2.7 4.5 Shree Digvi jay8 -55.4 -10.0-18.5-11.3-24.3-11.1 22.5 18.7 Sri Vishnu Cement -6.7 5.70.2-13. 4-7.8-3.5 6.4 17.3 Ultratech Cement Ltd - ---1.80.1 7.0 14.4 Zuari Inds -1.6 2.0 1.01.81.61.5 1.2 -1.9 n.a.: Not available 1 Financials are for an 18-mon th period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended in June 2 Financials are for the year ended in June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Financ ials for 2000-01 are for the year ended September 2001 5Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 6 Financials are for a 15-month period, from Apr il 2000 to June 2001 7 Financials for 1997-98 are for 15 months from April 1 996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002. 8 Fi nancials for 1998-99, are for an 18 month period from April 1998 to September 19 99. * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd. Note Net profit margin has been calculated as profit after tax divid ed by net sales. Source: CRISIL Research C-64 CRISIL RESEARCH CEME NT ANNUAL REVIEW Table 6: Cement - Debt-equity ratio (times) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 1.4 1.61.71.51.11.0 0.5 0.2 5 Andhra Cement -0.9 -0.9-0.9-1.1-1.0n.a. n.a. n.a. Binani Cement 1.1 1.21.11. 81.82.2 2.2 2.29 Birla Corp 1.6 1.21.31.30.90.8 0.6 0.34 Century Textiles 1.7 1.72.01.41.41.2 1.2 1.66 Chettinad Cement 1.6 1.83.52.52.22.2 1.8 0.9 Dalmia Ce ment 1.2 1.11.31.21.11.9 2.0 1.5 Grasim 0.8 0.60.80.70.60.5 0.4 0.47 Ambuja cem ent Ltd2 0.8 1.11.11.10.60.5 0.5 0.25 India Cements 2.2 2.43.04.45.65.8 1.9 1. 48 JK Corp3 3.6 5.46.4n.a.7.55.6 3.8 1.84 JK Synthetics -1.8 -1.2-1.4-1.4-1.3n .a. n.a. n.a. Jaipra ash Industries 1.4 1.41.4n.a.n.a.n.a. n.a. n.a. KCP 1.0 0.7 0.60.60.60.5 0.6 0.5 Kanoria Inds4 0.8 -1.4-1.0-0.8-0.7n.a. n.a. n.a. Kesoram In ds 1.2 1.81.51.41.31.4 1.4 1.22 Madras Cements 1.5 1.82.82.72.22.1 1.5 1.02 Man galam Cement5 5.8 -6.6-3.4-2.02.25.4 2.5 0.48 Mysore Cement6 3.3 13.37.517.3n.a. n.a. -2.8 n.a. OCL India 0.9 0.91.01.31.42.0 1.9 1.17 Panyam Cements 3.6 -12.4-1 .5-1.01.4n.a. -0.4 n.a. Prism Cement7 3.0 2.41.82.11.91.3 1.3 0 Priyadarshini 3. 1 3.33.64.0n.a.n.a. n.a. n.a. Shree Cement8 1.6 1.31.41.81.41.1 1.4 2.5 Shree Di gvijay9 -1.7 -1.4-1.5-1.21.6-1.3 -1.5 1.7 Sri Vishnu Cement 7.7 5.37.72.04.05.6 1.9 0.29 Ultratech Cement Ltd - ---1.51.4 1.4 0.9 Zuari Inds 1.8 0.81.01.51.71.6 2.1 1.1 n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended in June 2 Financials are for the year ended in June 3 Financials ar e for an 18-month period, from April 1999 to September 2000. Financials for 2000 -01 are for the year ended September 2001 4 Financials are for a 15-mon

th period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 m onth period from July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period, fro m April 1997 to June 1998. Financials for 1998-99 are for the year ended June 19 99. Financials for 1999-2000, are for a 9-month period from July 1999 to Marc h 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998 -99 to 2000-01 figures are for the year ended in June. The figures for 200102 are for 9 months, from July 2001 to March 2002. 9 Financials for 1998-99, are for an 18-month period from April 1998 to September 1999 Note Debt -equity ratio has been calculated as total borrowings divided by networth. So urce: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW C-65 Table 7: Cement - Return on capital employed (per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 9.113.318.316.619.7 23.6 21.0242.34 Andhra Cement 36.5-32.2-19.444.089.2 -89.8 n.a.n.a. Ambuja Cement Rajasthan1* -2.15.712 .312.6n.a. n.a. n.a.n.a. Binani Cement 11.915.418.115.517.3 15.0 11.1422.04 Bi rla Corp 9.713.314.915.523.1 27.0 23.1472.17 Century Textiles 13.413.917.218. 516.0 18.9 12.2737.92 Chettinad Cement 20.612.311.015.219.6 20.0 15.739.8 Dalmia Cement 15.317.217.614.815.1 10.5 12.0416.63 Grasim 14.618.517.919.526.5 27.8 1 7.5628.5 Ambuja cement Ltd2 26.215.114.116.520.2 24.4 16.449.63 India Cements 11.312.612.26.46.1 9.4 7.7123.8 JK Corp3 n.a.11.63.08.26.4 10.0 8.1822.41 Jaipra ash Industries n.a.18.614.323.220.6 17.2 n.a.n.a. KCP 6.415.017.88.99.9 17.0 17 .6345.93 Kesoram Inds 15.318.918.317.521.9 14.4 10.739.51 Madras Cements 16.515 .618.116.018.7 16.1 12.5644.25 Mangalam Cement5 14.6-40.823.521.3-30.0 128.3 20. 6336.77 Mysore Cement6 -1.63.28.78.66.9 13.1 -24.6619.16 Narmada Cement 5.36.313 .4n.a.4.1 -12.8 n.a.n.a. OCL India 14.112.513.916.220.1 15.2 11.3525.3 Panyam Ce ments 13.2-1.1n.m.n.m.72.2 37.3 47.53n.a. Prism Cement7 11.215.716.011.617.8 24. 1 13.8278.75 Priyadarshini 15.124.314.7n.a.76.5 -0.7 0.471.25 Saurashtra Cements 0.92.8-1.08.1-0.2 5.5 5.316.95 Shree Digvijay8 -63.019.316.833.724.3 6.0 n.a.18 .72 Shree Cement 16.217.821.417.721.4 28.7 5.2858.5 Sri Vishnu Cement 7.318.421. 81.57.4 12.7 70.6294.3 Tamil Nadu Cements -12.8-2.55.58.5n.a. n.a. 29.4812.59 Ul tratech Cement Ltd ----15.1 14.0 12.5243.4 Zuari Inds 12.412.29.510.59.6 10.5 7. 398.91 n.a.: Not available n.m.: Not meaningful 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 ar e for the year ended June 2 Financials are for the year ended in June 3 Fina ncials are for a 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period , from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 t o March 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1993-94 and 1994-95 period, are for year ended in Jun e. Financials for 1995-96 are for a 9-month period from June 1995 to March 1 996. Financials for 1998-99, are for an 18-month period from April 1998 to Septe mber 1999 * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement L td. Notes 1) Return on capital employed has been calculated as profit be fore depreciation, interest and tax divided by capital employed. 2) Capital empl oyed is networth plustotal debt. Source: CRISIL Research This page is intentionally left blan CRISIL RESEARCH CEMENT ANNUAL REVIEW C-67 T able 1: Cement - Company-wise exports ('000 tonnes) 1999-2000 2000-01 2001-02 20 02-03 2003-04 2004-05 2005-06 2006-07 2007-08 Ambuja cement Ltd 493929 119516441 756190815221586 1006 Ultratech Cement Ltd 318737 101370671986815051132 601 Jaipr a ash Inds 269330 335343257255278225 145 Birla Corp 218268 2001911211129536 44 A

CC 163210 19512873705259 30 Prism Cement 5886 11610491778111 16 Lafarge 2297 10 910065767422 10 Century Textiles 99140 1348616271323 19 Grasim 52105 29807129791 2 - Madras Cements -0 3244858522878 - Saurashtra Cement -15 42861285657632 286 O CL India 5232 47---- - Dalmia Cement 83 7471268 5 India Cements 31 223716126793 3 Mysore Cement 2- -22120- 2 Sanghi Industries Ltd -- --2546941032 700 Kalyanpur Cement 5430 210--- - Chettinad Cement -1 7--3-- - Gujarat Sidhee Cement 032 --31291376 256 Zuari Inds -- ---714985 - Indo Rama Cement -- ----22- - Idcol Cemen t 5 4 ------ - Raymond Woollens 129115 ------ - Shree Digvijay 1521 ------ - T isco 22- ------ - Total 1,9843,157 3,3833,4703,3634,07260155409 3124 Source: CMA 6.0 Exports C-68 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 2: Ceme nt - Country-wise exports ('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-0 4 2004-05 2005-06 2006-07 2007-08 Nepal 817 1,114 1,166 1,050 701 665 558 377 266 Africa - - 726 ----- Sri Lan a 0.4 24 44 4586102101106- Bhutan - 26 5 2023474- Maldives 11 4 10 7213843318 Iraq - - - -283 1,028 1,426 787 Bangladesh 528 485 59 ------ Myanmar - - - --4- -- Spain - 29 - ------ UAE 5 - - -16551838130 Yemen - - ---10317329 Somalia - - - -738-- Madagascar - - - --11415- Mozambique - - --14- 14- Kuwait - - - --158545- Qatar - - - --47281154125 South Africa 475 700 465 27421105563142 Seychelles - - - -329-- Others 112 754 909 2,072 2,456 3,002 3,512 2,976 1,837 Total 1,949 3,136 3,383 3,470 3,363 4,072 6,015 5 ,424 3,124 Source: CMA Table 3: Clin er - Company-wise exports ( '000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2 007-08 Ultratech Cement Ltd 1,134.7 1,628.5 1,258.1 2,065.5 2,777. 7 2,638.0 1,118.1 2,194.4 1,572.5 Gujarat Sidhee Cement - 11 .3 522.9 457.7 477.9 221.9 74.6 - Sanghi Industries L td - - - 266.1 782.4 739.7 378.4 45.6 Grasim 7.4 87.2 48.2 262.6 194.8 279.6 138 .7 31.6 Saurashtra Cement - - 166.8 425.3 223.7 42.0 8.5 29.6 Jaipra ash Inds 0.4 62.7 79.0 141.2 152.9 89.4 59.1 36.6 - Lafarge 4.4 114.2 129.9 27.1 23.6 - - - Centur y Textiles 8.5 19.2 36.9 70.2 64.4 63.0 44.5 3.8 52.5 Mysore Cement - - 37.0 37.3 112.6 112.3 3.5 - Madras Cements - - 17 .5 0.8 88.0 288.8 - - Prism Cement 5.3 8.4 24.0 12.8 86.1 209.9 250.8 191.0 223.7 Zuari Inds - - - - 14.8 28.4 - - Birla Corp 2.7 5.3 11.2 0.3 21.5 7.4 Ambuja cement Ltd 83.9 13.2 11.1 9.0 7.2 - - - Priyadarshini - - - - 2.7 - - - ACC 0.3 4.1 4.3 17.2 3.0 2.0 - O CL India 1.9 8.6 2.3 - - - - - R aymond Woollens 33.7 77.0 - - - - - - - India Cements - - 229.5 799.4 155.7 - - Mangalam Cement - - - 3.5 - 118.3 91.0 Penna Cement - - - - - - 6.9 - Shre e Cement - - - - - - 23.3 59.5 Meghalaya Cement - - - - - 5.5 8.0 Total 1,192 1,974 1,6033,4554,7495,8123,225 3,047 2, 121 Source: CMA CRISIL RESEARCH CEMENT ANNUAL REVIEW C-69 Table 4: Cli n er - Country-wise exports ('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003 -04 2004-05 2005-06 2006-07 2007-08 UAE --- 51664172742814846 Nepal 1167169 3123 94489487406485 Bangladesh 57211196 1512225819168- Bhutan 529 26187-38 Sri Lan a --- 187422097-- Africa -84- ------ Bahrain --- ---20-- South Africa -36- --51-- Spain --- 109-135191-- Kuwait --- -4194--- Oman --- -346710817432 Jordan --- -36--- Tanzania --- --28--- Iran --- -502513840- Mozambique --- --2457-- Others 1,119 1,659 1,229 2,298 3,083 3,067 1,665 2,227 1,600 Total 1,1922,0581,603 3,4294,5585,5503,2253,0672,169 Source: CMA

C-7 1 Table 1: Company-wise limestone cost (Rs/tonne of limestone) 1999-2000 20 00-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 114 113 1162931354346 Ambuja Cement Eastern1 69 85 816775n.a.n.a.n.a. Andhra Cements 58 67 72727478991 09 Binani Cement 46 59 535459758091 Birla Corp 106 110 119112109116126131 Centur y Textiles 85 97 104113110117127132 Chettinad Cement 109 116 133124126144181235 Dalmia Cement 103 114 132126138143155145 Grasim 62 75 7877798082130 Ambuja ceme nt Ltd1 n.a. n.a. n.a.n.a.n.a.n.a.n.a.n.a. India Cements 113 122 121128119122135 140 Jaipra ash Inds2 77 84 8086919099106 JK Corp3 78 95 90909094105109 JK Synthe tics 82 95 97981009898n.a. JK Udaipur Udyog n.a. n.a. 148-n.a.n.a.n.a.n.a. Kesor am Inds 84 88 1009794100114126 KCP 96 116 118119110118138174 Madras Cements 102 104 99107110114141158 Mangalam Cement3 102 117 125125125134170191 Mysore Cement 159 168 149148158160191212 Narmada Cement 61 60 63634267n.a.n.a. OCL India 176 1 72 145162151155163207 Panyam Cements 33 39 694849729984 Priyadarshini 17 17 2018 18n.a.n.a.n.a. Saurashtra Cement1 63 78 6565677283105 Shree Cement1 109 122 1171 25135122126132 Sri Vishnu Cement 59 75 8043135424849 Ultratech Cement Ltd - - -38397885 n.a.: Not available 1 Figures provided are for the financial ye ar ending June 2 Figures for 1995-96 are for the financial year ending June 3 Figures for 1999-2000, 2000-01, 2001-02 are for the financial year endin g September Source: CRISIL Research 7.0 Cost C-72 CRISIL RESEARCH CEM ENT ANNUAL REVIEW Table 2: Company-wise coal costs (Rs/tonne of cement) 1999-2 000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 267 253225259255 268276 334 Andhra Cements 329 353289339292300381 319 Binani Cement 327 373392n.a 330408n.a 391 Birla Corp 225 --332333353364 430 Century Textiles 386 39038638932 3319326 341 Chettinad Cement 262 342283280232357405 384 Dalmia Cement 243 300293 272264364457 486 DLF Cement 231 354349301--- - Grasim 390 466445423485556515 47 0 Ambuja cement Ltd 234 253240243245303274 315 Gujarat Sidhee Cement 273 3203125 22525824506 452 India Cements 286 341362317281482395 381 Jaipra ash Inds 210 218 233231232319342 940 JK Corp1 359 555272272246369307 299 JK Synthetics 465 431354 413384470n.a n.a Kanoria Inds 292 309315262291328186 n.a KCP 292 309265262291330 406 n.a Madras Cements 231 249208205219294281 288 Mangalam Cement 338 3351613473 88465476 261 Narmada Cement 260 318271273409403403 n.a OCL India 121 12211312213 7153201 194 Panyam Cements 349 449351470599448385 n.a Prism Cement1 233 22424325 1251339370 398 Priyadarshini 270 289272301446n.an.a n.a Shree Cement 290 2191721 54198288253 302 Sri Vishnu Cement 323 367272284250345400 n.a Ultratech Cement Lt d - ---283357328 396 n.a.: Not available 1 The financial year ending of JK Co rp, Prism Cement is June. Source: CRISIL Research CRISIL RESEARCH CEMENT ANNUAL REVIEW C-73 Table 3: Company-wise power consumption ( Wh/tonne) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC1, 5 96 97 9290908688 89 Ambuja Cement Eastern 87 91 93989992n.a.n.a Binani Cement 84 80 79787777n.a.7 5 Birla Corp 98 94 928784858483 Century Textiles 93 88 858282797679 Chettinad Ce ment 81 76 857673737174 Dalmia Cement 93 87 847571757677 DLF Cement 104 99 10091 ---- Grasim 90 90 918585858070 Ambuja cement Ltd 89 86 868686848684 Gujarat Sidh ee Cement 89 88 898486868589 India Cements1 101 97 9294127125130130 Jai Pra ash Inds 104 99 959089868786 JK Corp 2 87 88 888886848283 JK Synthetics 103 103 1031 039693n.a.n.a JK Udaipur Udyog 113 - 115n.a.n.a.n.a.n.a.n.a Kanoria Inds 123 133 1221111101271220 Kesoram Inds 94 88 888679767877 KCP 100 98 948984838589 Madras Cements 82 82 777472727273 Mangalam Cement 3,4 86 86 91018218217991 Mysore Ceme nt 103 96 9286848893n.a Narmada Cement 103 97 98999294n.a.n.a OCL India 87 84 82 9494918587 Panyam Cements 133 124 127131145133105155 Prism Cement 90 86 81817979 7672 Priyadarshini 97 95 93939393n.a.n.a Raasi Cement - - --- Raymond Woollens 7 9 80 ------ Saurashtra Cement n.a. 104 979798101106104 Shree Cement n.a. 78 7976 77757374 Sri Vishnu Cement 110 108 102100979994n.a Ultratech Cement Ltd 94 91 91 8884878987 n.a.: Not available 1 Figures are with respect to the dry process 2 Figures are with respect to grey cement. 2 Figures for 1999-2000 are for 18 months, with a September year-ending 4 Figures for 1999-2000 are for the 9

This page is intentionally left blan

CRISIL RESEARCH CEMENT ANNUAL REVIEW

month period, with the year ending June. 3 Figures are with respect to the new unit 4 Figures for 2000-01 are for the October 2000 to September 2001 period 5 From 2005-06, Figures are as of December Source: CRISIL Research C-74 CRISIL RESEARCH CEMENT ANNUAL REVIEW Table 4: Company-wise coal cost (Rs/tonn e of coal) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 ACC 6 1,716 1,6521,6751,7681,8101,9532,181 2,178 Ambuja Cement Eastern1 287 30131331 3318n.a.n.a. n.a. Ambuja Cement Rajasthan1,5 401 461450447n.a.n.a.n.a. n.a. Andh ra Cements 1,777 1,8971,7672,0272,0292,0732,004 2,004 Binani Cement 2,141 2,5972 ,5975,3085,4073,639n.a. 3,440 Birla Corp 1,707 n.a.n.a.1,8901,9152,2042,068 2,26 8 Century Textiles 1,430 1,5881,7051,703n.a.1,9282,024 2,142 Chettinad Cement 2, 439 3,0092,9893,1142,9133,6743,533 4,076 Dalmia Cement 2,089 2,4122,6582,6202,57 93,5283,431 3,551 Deccan Cement1 350 345381402413522474 504 DLF Cement 401 46145 0447n.an.an.a 3,183 Grasim 2,031 2,0492,0492,0492,1042,3252,400 2,410 Ambuja ce ment Ltd1, 6 353 395387357394505503 503 Gujarat Sidhee Cement1 345 3803583253695 23491 542 India Cements 1,947 2,4112,5342,5682,6443,0733,192 3,183 Jaipra ash In ds 1,581 1,5791,6741,7741,8222,0812,071 2,230 JK Corp4 2,204 1,7612,6992,366 2,5693,4723,308 4,000 JK Synthetics 2,506 2,6752,724n.a2,7223,308n.a. n.a. Kanor ia Inds 2,039 2,0142,2662,3592,5862,5292,742 n.a. Kesoram Inds 1,887 1,6731,498 1,588 1,5811,6241,815 1,876 KCP 1,899 1,9341,8871,8801,9082,1042,479 2,742 Madra s Cements 1,966 2,3602,5172,2952,5413,3413,159 3,393 Mangalam Cement3 2,414 2,41 41,9942,1302,3102,5432,652 2,635 Mysore Cement1 401 401417412442511570 638 Narma da Cement 1,783 2,1462,5332,0102,4623,390n.a. n.a. OCL India 761 7568759659451,2 081,488 1,617 Orient Cement 1,236 n.a.n.a.n.an.an.an.a n.a Panyam Cements 1,836 1,7971,7881,809n.a.n.a.1,819 2,354 Prism Cement 1,421 1,4611,6691,7011,8382,0062 ,198 2,382 Priyadarshini 1,614 1,7782,127n.an.an.an.a n.a Raymond Woollens 1,147 1,223----- - Shree Cement 2,380 2,3342,0161,8612,2423,1893,118 3,610 Sri Vishnu Cement 1,638 2,0791,8171,8051,6691,9762,158 2,256 Ultratech Cement Ltd - ---1,5 871,9041,888 2,396 Zuari Inds. 2,003 ------ - n.a.: Not available 1 Figu res denote average rate in Rs per million Cal 2 Figures includes cost of lignite 3 Figures for 2000-01 are for the October 2000 to September 2001 period 4 Figures for 1999-2000 are for 18 months with the year ending in Sept ember 5 Figures for 1999-2000 are for 9 months with the year ending in June 6 Figures for ACC from 2005-06 are as of December Source: CRISIL Resear ch

S-ar putea să vă placă și