1. Indian Cement Industry
Riding the High Tide

2. Industry Overview
• Era of Total Decontrol – March 1989
• Capacity - 29 Million tonne in 1981-82, rose to 2190 Lakh
tonne at the end of FY09
• India ranks second in world cement producing countries
• Demand of Cement
– Seasonal
– Inelastic in nature
• More than 100 firms in this segment with few dominant
players
Source: http://www.cmaindia.org/portal/static/DynamicFacts.aspx

3. Cement
Market
Division

4. Demand Drivers
Source: Crisil Research

5. Cement Industry Structure
Source: The Centre for Monitoring Indian Economy (CMIE)

6. Cement Industry Structure
Source: The Centre for Monitoring Indian Economy (CMIE)

7. Oligopolistic Nature
• Small Number of Large Firms
• Price Setters
• Group Behavior
• Mutually Interdependent
• Barriers to Entry

8. Cement Industry: A Cartel
• High Concentration Ratios
• Production Capacity
• Similar Production Costs
• High Dependence of the Consumers
• Shareholding Pattern Data (Crossholdings)

9. Competition Commission of India levied a penalty of over Rs 6,300 crore for price
cartelization - 21 June 2012

12. • http://www.scribd.com/doc/37444142/Ceme
nt-Industry-Analysis
• http://www.scribd.com/doc/9777716/Econo
mic-Reviev-of-Indian-Cement-Industry4
• http://indiacorplaw.blogspot.in/2012/06/sum
mary-of-ccis-order-against-cement.html