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CEMENT INDUSTRY IN INDIA 
Presented by. 
Saurabh Singh 
MBA (SEM I)
CONTENTS 
 Introduction. 
 Evolution of Indian cement industry. 
 Bodies promoting industrial development. 
 Types and manufacturing. 
 Leading cement manufacturing industries in India. 
 Economic status of cement industry. 
 Issues concerning the cement industry. 
 Effect of cement manufacturing on environment. 
 PEST analysis. 
 PORTAL’S five foces. 
 SWOT analysis. 
 Objectives of study. 
 Research methodology. 
 References.
INTRODUCTION 
 Cement is the glue that holds the concrete together, 
and is therefore critical for meeting society's needs 
of housing and basic infrastructure such as bridges, 
roads, water treatment facilities, schools and 
hospitals. 
 India is the world's second largest producer of 
cement after China with industry capacity of over 
200 million tonnes (MT).
EVOLUTION OF INDIAN CEMENT 
INDUSTRY 
• A Kolkata based company started manufacturing cement in 1889. 
• In 1914, Indian Cement Company Ltd was established in Porbandar. 
• In 1927, Concrete Association of India was set up to create public 
awareness on the utility of cement. 
• In 1956, price and distribution system of cement industry came 
under government control. 
• After the economic reform in 1980’s the government control on 
cement industry was liberalized. 
• A great increase in demand of cement, has resulted India to become 
2nd largest cement producer in the world after China.
BODIES PROMOTING INDUSTRIAL 
DEVELOPMENT 
 National Council for Cement and Building 
Materials. 
 Indian Concrete Institute.
TYPES OF CEMENT 
 Ordinary Portland Cement (OPC). 
 Portland Pozzolana Cement (PPC). 
 Portland Blast Furnace Slag Cement (PBFS). 
 Oil Well Cement. 
 Rapid Hardening. 
 Sulphate Resisting Portland Cement. 
 White Cement etc.
PERCENTAGE CONTENTS OF CEMENTS 
1.Ordinarily Portland Cement 
 Clinker - 90.50% 
 Gypsum - 4.00% 
 Fly ash - 5.50% 
2.Portland Pozzolana Cement 
 Clinker - 66% 
 Gypsum- 4% 
 Fly ash - 30% 
3.Portland Blast Furnace Slug Cement 
 Clinker - 70% 
 Gypsum- 6% 
 Slag - 24%
CEMENT MANUFACTURING 
 Cement is made out of limestone, shale, clay mined out of quarry 
close to the plant. The raw material is crushed, and then heated at 
temperature in excess of 1000 degree Celsius in rotating kiln to 
become clinker. Clinker is then mixed with gypsum and ground to a 
fine powder to produce final grade of cement. 
 The technology is a continuous process and is highly energy 
intensive. 
 At present 93% of cement production in India is based on modern 
and environment-friendly dry process technology and only 7% of the 
capacity is based on old wet and semi-dry process technology. 
 The cost of Cement is 29% energy; 27% raw materials; 32% labour 
and 12% depreciation
TYPES MANUFACTURING PROCESS 
There are three types of manufacturing process is 
used to produce cement:- 
 Dry process (96.3% used). 
Wet process (3.5% used). 
 Semi dry process (0.2% used).
FLOW CHART OF CEMENT MANUFACTURING
ppt on cement industry in india
ppt on cement industry in india
ppt on cement industry in india
MAJOR PLAYERS IN THE INDIAN 
CEMENT INDUSTRY 
Company Production capacity 
(In million tonnes) 
plants 
ACC 30.04 14 
Ambuja 27.00 13 
Ultratech 48.75 22 
Lafarge India Pvt. Ltd. 7.75 04 
India Cements 15.33 09 
JK Group 07.47 04 
Jaypee Group 24.50 14 
Shree Cement Ltd. 13.50 06 
Madras Cements 14.88 08 
Birla Corp. 06.46 07 
Source : Labour and Industrial Chronical, Survey of Cement Industry & 
Directory 2012 : 3rd Edition
KEY FEATURES OF CEMENT INDUSTRY 
 India's cement production has increased at a 
compound annual growth rate (CAGR) of 9.7 
per cent to reach 272 million tonnes (MT) during 
FY 06-13 
 The government plans to spend US$ 1 trillion on 
infrastructure in the 12th five year plan period 
(2012-17). 
 Concrete is the second most consumed material after 
water, with nearly three tones used annually for each 
person on the planet. 
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ECONOMIC STATUS OF THE CEMENT 
INDUSTRY 
 Growth Rate 
 Investments 
Exports 
 FDI and GDP
GROWTH RATE 
• India is the world’s second largest producer of 
cement with total capacity of 370 million tonnes as 
of financial year 2012-13.and expected to reach 
550 million tonnes in 2020. 
• Indian Cement Industry comprises of 185 large and 
more than 365 mini cement plants. 
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PRODUCTION AND PRODUCTION CAPACITY OF 
CEMENT IN INDIA
INVESTMENTS 
• Cement and gypsum products attracted FDI worth 
US$ 2.23 billion between April 2000 and June 2014, 
according to the Department of Industrial Policy and 
Promotion. 
• Jaypee Associates plans to invest US$ 640 million 
to increase its cement capacity. 
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EXPORTS 
• During 2007-08, the export of cement from India 
touched the 2.16 million tonnes mark. However 
during 2008-09, the cement export from India stood 
at 1.46 million tonnes. 
• In spite of seeing fall during 2008-09, the export 
segment of the industry is expected to grow again 
on account of various infrastructure projects that 
are being taken up all over the world. India has an 
immense potential to tap markets of Middle East 
and South East Asia 
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FDI AND CONTRIBUTION TO THE GDP 
• The industry occupies an important place in the 
national economy because of its strong linkages to 
other sectors such as construction, transportation , 
coal and power. 
• 100% FDI is permitted in the cement industry. 
• It contributes approximately 1.3% of GDP and the 
industry is employing over 0.14 million people in 
2013. 
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ISSUES CONCERNING THE CEMENT 
INDUSTRY 
•High Transportation Cost is affecting the competitiveness 
of the cement industry Road is the preferred mode for 
transportation or distances less than 250km. However, 
industry is heavily dependant on roads for longer distances 
too as the railway infrastructure is not adequate. 
•Cement industry is highly capital intensive industry and 
nearly 55-60% of the inputs are controlled by the 
government. 
•Coal availability and quality is also affecting the 
production.
OVERVIEW OF INDIAN CEMENT 
INDUSTRIES 
Large Cement Plants Mini And White Cement Plants 
 Cement plants: 185 
 Installed capacity: 339.5 
mtpa 
 Cement production: 168.3 
mtpa* 
 Cement plants: 365 
 Installed capacity: 11.1 
mtpa 
 Cement production: 6.0 
mtpa
MAJOR CEMENT DEMAND DRIVERS 
64% 
13% 
17% 
6% 
housing sector 
infrastructure 
commercial 
&institutional 
industrial 
http://www.ibef.org/industry/cement-india.aspx
INDIA IS THE 2ND LARGEST CEMENT PRODUCER AS WELL AS 
CONSUMER IN THE WORLD LED BY THE ENORMOUS GROWTH IN THE 
INFRASTRUCTURE AND CONSTRUCTION SECTOR FOR THE LAST TWO 
DECADES 
Top Cement Consumers in 
2013 (million tonnes) 
Top Cement Producer in 2013 
(million tonnes) 
2048 
72 65 
2500 
2000 
1500 
1000 
500 
0 
2013 
2013 
300 
2058 
373 
66 64 
2500 
2000 
1500 
1000 
500 
0 
2013 
2013 
http://www.ibef.org/industry/cement-india.aspx
EFFECT OF CEMENT MANUFACTURING ON 
ENVIRONMENT 
Carbon di oxide emmision:- 
 limestone scrubber: 
CaCO3 + SO3 +2H2O —> CaSO4 + 2H2O + CO2 ↑ 
 lime scrubber: 
Ca(OH)2 + SO3 + H2O —> CaSO4 + 2H2O 
 CO2 Emissions from Calcination: 
CaCO3 + heat (to about 9508ᵒC)──> CaO + CO2
NITROGEN OXIDE EMISSIONS FROM CLINKER 
MANUFACTURING:- 
High-temperature combustion of fuels in the kiln line releases 
nitrogen oxides (NOx), with the nitrogen being mainly 
derived from the atmosphere but also to some degree from the 
fuels themselves; a minor contribution also comes from some 
types of raw materials 
 O + N2 ──> NO + N and 
 O2 + N ──> NO + O (unstable)
PEST ANALYSIS 
• Coal rates, power tariffs, railway freight plays a very important 
factor in the price determination, interestingly, government 
control all of these prices 
• Govt is one of the biggest consumers of the cement 
POLITICAL 
• Future of cement industry is very strong 
• A lot government infrastructure and housing projects are 
under construction 
ECONOMIC 
• Indian consumers prefer buying branded cement like 
LAFARGE, JAYPEE,BIRLA etc 
• Industry will create 25 lakhs jobs in coming years 
SOCIAL 
• Govt is acquiring new technology from Japan 
• Emphasis is on creating highly energy efficient and 
environment friendly technology to produce cement TECHNOLOGY
PORTER’S FIVE FORCES FRAMEWORK
SWOT ANALYSIS 
Strengths: 
 Second largest in the world in terms of capacity 
 Low cost of production: due to the easy availability of 
raw materials and cheap labour 
 Growth at approx. CAGR of 9% in last 5 years 
 Growing Domestic cement consumption at approx. 
CAGR of 8% in last 3 years 
 Highly Capital Incentive so difficult for small entrant 
 Not much restriction by govt.
WEAKNESS:- 
 High Oil Prices, Cost of Power increase production cost. 
 Supply exceeds Production lead to competition in price. 
 Low Quality as compared to international standard but 
improving.
OPPORTUNITIES: 
 High Mortgage Penetration -Low Interest Rates 
 Easy loan availability for housing finance 
 Increased investments in Infrastructure 
 Increased govt. outlay on BHARATNIRMAN, 
GOLDEN QUADRILATERAL, and BRTS etc.
THREATS:- 
 Further Hike in Oil Prices. 
 Use of plastic engineering in construction. 
 Subprime market loss may affect.
OBJECTIVES OF STUDY 
 To study the process of manufacturing and effect of 
introducing of new technology.
REFERENCES 
 Building material and construction- B.C.PUNAMIA 
Websites. 
 www.google.com . 
 http://www.ibef.org. 
 http://en.wikipedia.org/wiki/Cement.s 
 https://www.equitymaster.com
THANK YOU….

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ppt on cement industry in india

  • 1. CEMENT INDUSTRY IN INDIA Presented by. Saurabh Singh MBA (SEM I)
  • 2. CONTENTS  Introduction.  Evolution of Indian cement industry.  Bodies promoting industrial development.  Types and manufacturing.  Leading cement manufacturing industries in India.  Economic status of cement industry.  Issues concerning the cement industry.  Effect of cement manufacturing on environment.  PEST analysis.  PORTAL’S five foces.  SWOT analysis.  Objectives of study.  Research methodology.  References.
  • 3. INTRODUCTION  Cement is the glue that holds the concrete together, and is therefore critical for meeting society's needs of housing and basic infrastructure such as bridges, roads, water treatment facilities, schools and hospitals.  India is the world's second largest producer of cement after China with industry capacity of over 200 million tonnes (MT).
  • 4. EVOLUTION OF INDIAN CEMENT INDUSTRY • A Kolkata based company started manufacturing cement in 1889. • In 1914, Indian Cement Company Ltd was established in Porbandar. • In 1927, Concrete Association of India was set up to create public awareness on the utility of cement. • In 1956, price and distribution system of cement industry came under government control. • After the economic reform in 1980’s the government control on cement industry was liberalized. • A great increase in demand of cement, has resulted India to become 2nd largest cement producer in the world after China.
  • 5. BODIES PROMOTING INDUSTRIAL DEVELOPMENT  National Council for Cement and Building Materials.  Indian Concrete Institute.
  • 6. TYPES OF CEMENT  Ordinary Portland Cement (OPC).  Portland Pozzolana Cement (PPC).  Portland Blast Furnace Slag Cement (PBFS).  Oil Well Cement.  Rapid Hardening.  Sulphate Resisting Portland Cement.  White Cement etc.
  • 7. PERCENTAGE CONTENTS OF CEMENTS 1.Ordinarily Portland Cement  Clinker - 90.50%  Gypsum - 4.00%  Fly ash - 5.50% 2.Portland Pozzolana Cement  Clinker - 66%  Gypsum- 4%  Fly ash - 30% 3.Portland Blast Furnace Slug Cement  Clinker - 70%  Gypsum- 6%  Slag - 24%
  • 8. CEMENT MANUFACTURING  Cement is made out of limestone, shale, clay mined out of quarry close to the plant. The raw material is crushed, and then heated at temperature in excess of 1000 degree Celsius in rotating kiln to become clinker. Clinker is then mixed with gypsum and ground to a fine powder to produce final grade of cement.  The technology is a continuous process and is highly energy intensive.  At present 93% of cement production in India is based on modern and environment-friendly dry process technology and only 7% of the capacity is based on old wet and semi-dry process technology.  The cost of Cement is 29% energy; 27% raw materials; 32% labour and 12% depreciation
  • 9. TYPES MANUFACTURING PROCESS There are three types of manufacturing process is used to produce cement:-  Dry process (96.3% used). Wet process (3.5% used).  Semi dry process (0.2% used).
  • 10. FLOW CHART OF CEMENT MANUFACTURING
  • 14. MAJOR PLAYERS IN THE INDIAN CEMENT INDUSTRY Company Production capacity (In million tonnes) plants ACC 30.04 14 Ambuja 27.00 13 Ultratech 48.75 22 Lafarge India Pvt. Ltd. 7.75 04 India Cements 15.33 09 JK Group 07.47 04 Jaypee Group 24.50 14 Shree Cement Ltd. 13.50 06 Madras Cements 14.88 08 Birla Corp. 06.46 07 Source : Labour and Industrial Chronical, Survey of Cement Industry & Directory 2012 : 3rd Edition
  • 15. KEY FEATURES OF CEMENT INDUSTRY  India's cement production has increased at a compound annual growth rate (CAGR) of 9.7 per cent to reach 272 million tonnes (MT) during FY 06-13  The government plans to spend US$ 1 trillion on infrastructure in the 12th five year plan period (2012-17).  Concrete is the second most consumed material after water, with nearly three tones used annually for each person on the planet. https://www.equitymaster.com
  • 16. ECONOMIC STATUS OF THE CEMENT INDUSTRY  Growth Rate  Investments Exports  FDI and GDP
  • 17. GROWTH RATE • India is the world’s second largest producer of cement with total capacity of 370 million tonnes as of financial year 2012-13.and expected to reach 550 million tonnes in 2020. • Indian Cement Industry comprises of 185 large and more than 365 mini cement plants. https://www.equitymaster.com
  • 18. PRODUCTION AND PRODUCTION CAPACITY OF CEMENT IN INDIA
  • 19. INVESTMENTS • Cement and gypsum products attracted FDI worth US$ 2.23 billion between April 2000 and June 2014, according to the Department of Industrial Policy and Promotion. • Jaypee Associates plans to invest US$ 640 million to increase its cement capacity. https://www.equitymaster.com
  • 20. EXPORTS • During 2007-08, the export of cement from India touched the 2.16 million tonnes mark. However during 2008-09, the cement export from India stood at 1.46 million tonnes. • In spite of seeing fall during 2008-09, the export segment of the industry is expected to grow again on account of various infrastructure projects that are being taken up all over the world. India has an immense potential to tap markets of Middle East and South East Asia https://www.equitymaster.com
  • 21. FDI AND CONTRIBUTION TO THE GDP • The industry occupies an important place in the national economy because of its strong linkages to other sectors such as construction, transportation , coal and power. • 100% FDI is permitted in the cement industry. • It contributes approximately 1.3% of GDP and the industry is employing over 0.14 million people in 2013. https://www.equitymaster.com
  • 22. ISSUES CONCERNING THE CEMENT INDUSTRY •High Transportation Cost is affecting the competitiveness of the cement industry Road is the preferred mode for transportation or distances less than 250km. However, industry is heavily dependant on roads for longer distances too as the railway infrastructure is not adequate. •Cement industry is highly capital intensive industry and nearly 55-60% of the inputs are controlled by the government. •Coal availability and quality is also affecting the production.
  • 23. OVERVIEW OF INDIAN CEMENT INDUSTRIES Large Cement Plants Mini And White Cement Plants  Cement plants: 185  Installed capacity: 339.5 mtpa  Cement production: 168.3 mtpa*  Cement plants: 365  Installed capacity: 11.1 mtpa  Cement production: 6.0 mtpa
  • 24. MAJOR CEMENT DEMAND DRIVERS 64% 13% 17% 6% housing sector infrastructure commercial &institutional industrial http://www.ibef.org/industry/cement-india.aspx
  • 25. INDIA IS THE 2ND LARGEST CEMENT PRODUCER AS WELL AS CONSUMER IN THE WORLD LED BY THE ENORMOUS GROWTH IN THE INFRASTRUCTURE AND CONSTRUCTION SECTOR FOR THE LAST TWO DECADES Top Cement Consumers in 2013 (million tonnes) Top Cement Producer in 2013 (million tonnes) 2048 72 65 2500 2000 1500 1000 500 0 2013 2013 300 2058 373 66 64 2500 2000 1500 1000 500 0 2013 2013 http://www.ibef.org/industry/cement-india.aspx
  • 26. EFFECT OF CEMENT MANUFACTURING ON ENVIRONMENT Carbon di oxide emmision:-  limestone scrubber: CaCO3 + SO3 +2H2O —> CaSO4 + 2H2O + CO2 ↑  lime scrubber: Ca(OH)2 + SO3 + H2O —> CaSO4 + 2H2O  CO2 Emissions from Calcination: CaCO3 + heat (to about 9508ᵒC)──> CaO + CO2
  • 27. NITROGEN OXIDE EMISSIONS FROM CLINKER MANUFACTURING:- High-temperature combustion of fuels in the kiln line releases nitrogen oxides (NOx), with the nitrogen being mainly derived from the atmosphere but also to some degree from the fuels themselves; a minor contribution also comes from some types of raw materials  O + N2 ──> NO + N and  O2 + N ──> NO + O (unstable)
  • 28. PEST ANALYSIS • Coal rates, power tariffs, railway freight plays a very important factor in the price determination, interestingly, government control all of these prices • Govt is one of the biggest consumers of the cement POLITICAL • Future of cement industry is very strong • A lot government infrastructure and housing projects are under construction ECONOMIC • Indian consumers prefer buying branded cement like LAFARGE, JAYPEE,BIRLA etc • Industry will create 25 lakhs jobs in coming years SOCIAL • Govt is acquiring new technology from Japan • Emphasis is on creating highly energy efficient and environment friendly technology to produce cement TECHNOLOGY
  • 30. SWOT ANALYSIS Strengths:  Second largest in the world in terms of capacity  Low cost of production: due to the easy availability of raw materials and cheap labour  Growth at approx. CAGR of 9% in last 5 years  Growing Domestic cement consumption at approx. CAGR of 8% in last 3 years  Highly Capital Incentive so difficult for small entrant  Not much restriction by govt.
  • 31. WEAKNESS:-  High Oil Prices, Cost of Power increase production cost.  Supply exceeds Production lead to competition in price.  Low Quality as compared to international standard but improving.
  • 32. OPPORTUNITIES:  High Mortgage Penetration -Low Interest Rates  Easy loan availability for housing finance  Increased investments in Infrastructure  Increased govt. outlay on BHARATNIRMAN, GOLDEN QUADRILATERAL, and BRTS etc.
  • 33. THREATS:-  Further Hike in Oil Prices.  Use of plastic engineering in construction.  Subprime market loss may affect.
  • 34. OBJECTIVES OF STUDY  To study the process of manufacturing and effect of introducing of new technology.
  • 35. REFERENCES  Building material and construction- B.C.PUNAMIA Websites.  www.google.com .  http://www.ibef.org.  http://en.wikipedia.org/wiki/Cement.s  https://www.equitymaster.com