...Analysis of Indian Cement Industry 1 • Industry Structure • Regional Scenario • Demand Dynamics • Cost Structure • Ready Mix Concrete (RMC) • Demand • Key Demand Drivers • Supply • Operating Rates • Prices • Profitability • Player Profiles 2 :3 : 13 : 55 : 75 : 86 : 99 : 102 : 132 : 143 : 154 : 161 : 168 Industry Structure 3 Porter five force analysis Industry structure •As of March 2011, the installed cement capacity of large plants in India stands at approximately 284 million tonnes. •This is accounted by around 172 large cement plants. In addition to large cement plants, around 365 mini cement plants account for approximately 11 million tonnes of cement capacity in India. •The industry can be broadly classified into pan-India, regional and marginal players. Pan-India players include large players like Holcim group companies- ACC and Ambuja and Aditya Birla group company- UltraTech Cement (including Samruddhi Cement) . •Companies of both these groups are adding capacities through either greenfield or brownfield expansions. Industry structure •Players whose presence is restricted to one or two regions, with a stronghold in the markets of their respective operations are included in the category of regional players. Key examples of players included in this segment are Jaiprakash Associates (North and Central), Lafarge (concentrated in the East), India Cement (South), Shree Cement •(North), Binani Cement (North), Kesoram Industries (South), OCL (East)...
Words: 9278 - Pages: 38
...FINAL PAPER Economics for Business Case Study: Oligopoly in Indonesian Cement Industry BRIEF CONTENTS CHAPTER I: PREFACE..…………………………………………………………………..….. 2 1.1. Background ...………………………………………………………………………….. 2 1.2 Identification Problem……………………………………………………....................... 3 CHAPTER II: BASIC CONCEPT AND CHARACTERISTIC …………….............................. 4 2.1 Basic Concept of Oligopoly ……………………………………….................................. 4 2.2 Models of Oligopoly Competition ......…………………………….................................. 4 2.2 The Advantages and Disadvantages of Oligopoly Competition ....................................... 5 CHAPTER III: ANALYSIS .......................................................…………….............................. 6 3.1 Oligopoly of Indonesian Cement Industry ….................................................................... 6 3.2 Competition in Indonesian Cement Industry …................................................................ 9 3.3 Pricing Strategy in Oligopoly ......................................................................................... 10 3.4 Government Policy .......................................................................................................... 11 CHAPTER IV: CONCLUSION AND RECOMMENDATION .………….............................. 13 4.1 Conclusion ….................................................................................................................. 13 4.2 Recommendation ….............
Words: 2876 - Pages: 12
...Cement Industry Structure The Indian cement industry is weakly oligopolistic in nature on a national level with top 11 to 12 firms among more than 100 firms capturing 70% of the cement market. This nature has been consistent through the years MARCH 2011 The major players are ACC Ltd., Ambuja Cements Ltd., Ultratech Cement Ltd., India Cements Ltd., Century Textiles & Inds. Ltd., Jaiprakash Associates Ltd., Birla Corporation Ltd., Lafarge India Pvt.Ltd., Madras Cements Ltd., Shree Cement Ltd., Binani Cement Ltd., and Kesoram Industries Ltd. The shares, in terms of all India cement production, of these top companies have fluctuated by small amounts in the last six years (since ACC Ltd. and Ambuja Cements Ltd. were taken over by Holcim Group)....
Words: 1012 - Pages: 5
...Industry Analysis Sri Lanka’s changing landscape with numerous projects which have enhanced and bloomed the construction industry. This will by default, increase the necessity of associated segments like the cement industry. Because cement has become one of the main and crucial ingredients which is used in these giant projects where infrastructure is being enhanced with a great scale. Post war situation of the country has result in this demand. Currently Sri Lanka has many companies or rather brands to bring the very same cement to the market at many different prices but the quality is subject to change with one brand to the other. Main suppliers for cement industry in current Sri Lankan market are as follows. 1) Tokyo Cement 2) Holcim Cement 3) Ultratech Cement Above mentioned companies are some of the companies operate in Sri Lankan market. Currently the maximum retail price of a 50 kg bag of cement is Rs. 785. This kind of market control mechanisms have been executed in the market because this market has become really very important to customers and have become a frequently required item. Sri Lanka is estimated to be consuming about 5.8 million tons of cement per annum. Sri Lanka is used to import 66 percent of its requirement either in the form of cement or clinker and it is important to note that this could go up to 75 percent. Mainly Sri Lanka imports cement from countries such as India, Vietnam, Pakistan, Malaysia, Indonesia and Thailand. This...
Words: 649 - Pages: 3
...Strategic Situation of Alternative fuels in Assiut Cement Company Assiut Cement Company is part of CEMEX, a growing global building materials solution corporation that provides products of consistently high quality and reliable service to customers and communities. in CEMEX Egypt and in cooperation with the ministry of environment and industry, we converted garbage into energy, by this project we protect our environment from CO2 emissions resulting from burning agricultural wastes on field that causes black clouds, and reduce the heavy fuel consumption in our operations on the other hand we have registered the 1st clean development mechanism project (CDM) in our industry in Egypt, under the umbrella of Kyoto protocol in the UNFCCC. The CDM program entails that any developing country succeeds to reduce its CO2 emissions will gain a financial reward equivalent to the certified emission Toward this end, we have planted a forest of 600,000 trees in the desert near the factory in order to reduce the CO2 and provide wood for alternative fuel use. Also we installed Refused derived fuel system to produce RDF as alternative fuels from house garbage to save our environment from land filling phenomena as environmental pollution, caused by improper treatment and dumping of different wastes has caused serious environmental and social problems throughout the world. Currently we are able to reduce our CO2 emissions by 400,000 tons equivalent per year by replacement 20 -25% of...
Words: 726 - Pages: 3
...India Cement Industry 4Q09 India: Cement covers the overview of the cement industry in India, risk factors, concern, cost structure, business characteristics, significant consolidations and market share of major cement producers. It also covers the demand cycle, demand drivers, cement consumption, installed capacity, production, demand-supply dynamics, regional disparity, exports, prices, Union Budget FY2007, market outlook, plus the profile, comparative matrix and SWOT analysis of the industry leading players: ACC Limited, UltraTech Cement Limited, Gujarat Ambuja Cements Limited, Grasim Industries Limited and India Cements Limited India is the second largest producer of cement in the world next to China. The cement industry contributes approximately 6% of the overall global production. This position has been achieved because of India’s sustained growth at an average rate of 8.1% per year between 1981 and 2008. The installed capacity of the industry was 198 million tonnes per annum in 2008. Meanwhile, domestic consumption and exports stood at 173 million tonnes and 6 million tonnes respectively in 2008. The cement consumption, on a conservative basis, is likely to go up to 225 million tonnes by 2010-2011. Outlook Key Positives | Key Negatives | Real estate & housing boom:Cement demand has picked up in the last few years owing to strong surge witnessed in the real estate and construction industry. Apart from this on going demand for housing has augured well for the cement...
Words: 631 - Pages: 3
...bee@beemanagement.com Web: www.astrategies.com Email: info@astrategies.com ANALYSIS & EVALUATION OF DISTRIBUTION CHANNELS IN VARIOUS SECTORS The project involved analyzing and evaluating distribution channels of various companies belonging to sectors like: 1. Precious and semi precious stones, 2. White goods, 3. Cement, 4. FMCG Methodology: This research comprised of activities like listing down various agencies like manufacturers, distributors, etc and also chambers and libraries like the Indian merchant chambers and interacting with them in order to gather first hand information. PRECIOUS AND SEMI PRECIOUS STONES The Indian Gems and Jewellery industry is an age old industry and comprises mainly of two types of markets, viz the organized sector and the unorganized sector. The organized sector with branded jewelers, Public Sector Units (PSUs), etc forms only 10% of the precious and semi-precious stones market, whereas, the unorganized sector forms 90% of the gems and jewellery market in India. The unorganized sector employs around 1.5 million workers serving over 0.1 million gold jewelers and over 8000 diamond jewelers. Precious and semi-precious stones industry is a significant earner of foreign exchange. This sector contributes around 17% of India’s exports. The bulk of the Indian gems and jewellery exports comprise imports of rough diamonds, cutting and polishing in India, and re -exports. Cut and Polished Diamonds (CPD) and gold Jewellery account for nearly 95% of India’s...
Words: 3682 - Pages: 15
...While concrete has been around in one form or another since before Roman times, in this era the cement was usually mixed by hand using a shovel or spade. However in the late 1920 when the automobile industry started to become popular so did the portable cement mixer or concrete mixer as it is more commonly know in the construction industry. A cement mixer is device often used in the construction industry to produce a concrete substance, this is done by adding compound components such as the concrete powder, mortar and water together with the aid of a cement mixer to mix and fold these components to form what is known as a concrete substance which may be used for the application of bricklaying, foot paths or drive ways. A cement mixer is often used in the construction industry in large quantities however these devices can also be used by DIY householders due to the variety of mixers currently available in today’s market. All mixers leverage power, torque and weight distribution to get the concrete to the site, but getting it out of the truck is where you'll see differences in truck designs. Most of the mixer fleet, especially older batch model trucks use a simple tip-and-pour method to get the concrete out of the mixer. A chute attaches to a port and the concrete pours out of the mixer to the project. Usually, the driver of the truck operates the machinery and aims the chute. Many transit mixers are coupled to a hydraulic lift bed that can tip up the drum, similar to a dump truck...
Words: 409 - Pages: 2
...49316 materials handling System design for transport of limestone to feed a cement plant at the foot of the Himalayas | Assignment 3Parviz Raminzad | 49316 materials handling System design for transport of limestone to feed a cement plant at the foot of the Himalayas | Assignment 3Parviz Raminzad | Contents Q2) Relevance of System Engineering to bulk materials handling and this project 3 Q3) Alternative Systems 4 Rail and Road 4 Aerial Ropeway 4 Building the Cement Plant near the Mine Site 4 Pipeline 4 Q4) Discuss the purpose of the items in Figure1 5 Q5) Discuss the purpose of Rheological and Flow test 15 Purpose of Rheological and Flow Tests. 15 Importance of Pilot Plant Tests 16 Q6) Design Selection 17 a. Delivery Pipeline 17 Quantity to Be Pumped 18 Size of Pipeline 19 Friction Head Hf for the Pipeline 19 Loss in Discharge Pipe Enlargement 20 Loss at Pipe Discharge 20 Loss of Head at Entrance to Suction Pipe 20 Total Dynamic Head on the Pump [Hm] 21 Equivalent Water Total Dynamic Head [Hw] 21 b. Warman Pump Selection 21 Piston Pumps and Pipe Validation 22 a. Piston Pumps 22 b. Pipe Design Parameters 23 8) Design Parameters of the main pipeline 23 Q9) Alternative Systems...
Words: 3188 - Pages: 13
...global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement? The globalization has significantly boosted profitability growth of companies in the cement industry through international trade and cross border investment flows. Possibility to operate in different foreign markets helps companies to diversify its business. It is highly beneficial strategy for cement companies because of the cyclical and economic downturns and upswings of the industry in different regions of the world. Also because of the localized specifics of cement production and high transportation costs cement companies began to invest in foreign producers. CEMEX was successful in its international expansion strategy as it created value through acquisitions- purchasing existing capacity rather than building new plants in the foreign market which in turn strengthened its presence through economies of scale. What is important CEMEX targeted companies which market value was lower than its underlying values: WACC, profitability, capacity etc. Geographic diversification had also reduced earnings volatility. For example when peso crisis happened in Mexico and Mexican cash flows could not be used for FDI, CEMEX used its non Mexican assets from Spain to further finance new acquisitions. 2. How specifically has CEMEX managed to outperform its leading global competitors in the cement industry, especially Holderbank...
Words: 902 - Pages: 4
...POTENTIAL AND CUSTOMER SATISFACTION LEVEL WITH REFERENCE TO DALMIA CEMENT Submitted by M.MONDURAILINGAM STUDENT VTP1436 V.JEYASEELAN STUDENT VTP1504 S.BHUVANESWARAN STUDENT VTP1488 M.KARTHICK STUDENT VTP1528 ABSTRACT The main objective of the study is to find out the Market Potential and Customer Satisfaction level through scientific tools interviews and questionnaire. The Specific objectives will be met by finding the customer satisfaction level through direct interaction with the customer and by knowing their preference. This will include all the processes like asking questions from the customers through questionnaire which will be included in the primary survey. Once the primary survey is done, secondary survey will be done. The path of the secondary survey will be decided depending on the conclusions coming out of the primary survey. This study includes direct interaction with the customer and this helps us to know the ‘MARKET POTENTIAL AND CUSTOMER SATISFACTION LEVEL’ to great accuracy. This study is of great importance to the company which will know about the customer preference to buy a particular brand. INTRODUCTION The cement industry of any nation plays an important role in its development through the construction of infrastructure. India's cement production has increased at a compound annual growth rate (CAGR)...
Words: 1856 - Pages: 8
...ASSESSMENT OF COMPETITION IN CEMENT INDUSTRY IN INDIA RESEARCH PROJECT REPORT SUBMITTED TO THE COMPETITION COMMISSION OF INDIA SUBMITTED BY: SUMIT PAL SINGH MBA (2011-2013) VINOD GUPTA SCHOOL OF MANAGEMENT, IIT KHARAGPUR i ACKNOWLEDGMENT I extend my sincere gratitude to The Competition Commission of India, for giving me an opportunity to intern at the commission. In specific, I thank Mr. Rakesh Kumar, Joint Director (Eco) for being a guiding force throughout this submission and being instrumental in the successful completion of this project. Without him every effort of mine would have been in vain. He has been kind and patient throughout, to share with me his precious time, thoughts and insights. Sumit Pal Singh Vinod Gupta School of Management, IIT Kharagpur ii DISCLAIMER This project report/dissertation has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for academic purposes only. The views expressed in the report are personal to the intern and do not reflect the view of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. iii TABLE OF CONTENTS 1. INTRODUCTION ..........................................................
Words: 19133 - Pages: 77
...2. From Thomas Springer’s inventory, multiple things can be deduced about his life and daily activities. For one thing, it is evident that Thomas Springer did work outside, most likely agricultural and lumber work. He has both a large amount of supplies intended for work outside, including crowbars, axes, and plows, as well as a large portion of agricultural and lumber goods, such as potatoes, cider, and wood. Not only this, but it is noticeable that he has more boots than he has drawers. The fact that he would have more boots than underwear shws that he certainly has a great need for boots, a need which would be justified by daily outdoor agricultural work. Although it is obvious that a good portion of this man’s day and his income is determined by outdoor work, it is also evident that his time is not entirely dominated by such work. It is listed that he has “a lot of books”. It can be assumed that if Springer had no time remaining outside of his agricultural work, then he would be unable to have time to read and thus be unlikely to accumulate many books. Therefore Springer most likely has spare time outside of working, which he is able to use for leisure. This, along with the fact that Springer is able to afford not only a lot of books for pure leisure, but also 2 slaves shows that, although perhaps not extremely wealthy, Springer is certainly well off and providing for himself beyond sustenance. Springer is evidently, thorugh agricultural and lumber work, making a healthy...
Words: 748 - Pages: 3
...Description of the company YTL Cement Bhd was founded by Executive Chairman Tan Sri Dato’ Seri Dr Yeoh Tiong Lay after whom the company is named. It is a manufacture of cement, concrete, and quarry products and provided materials related to construction industrial. Currently it is the second largest cement producer and the largest producer of ready-mixed concrete in Peninsular Malaysia. Cement is an inorganic, non-metallic substance with hydraulic binding properties, and is used as a bonding agent in building materials. It is a fine powder, usually grey in colour, that consists of a mixture of the hydraulic cement minerals to which one or more forms of calcium sulphate have been added (Greer et al., 1992). YTL Cement Bhd is one of the business by YTL Corporation Bhd (YTL Corp) since 1955. YTL Corp is an infrastructure conglomerates. Other of subsidiaries are power supply, hotels and properties, land and development, high speed rail, operating and maintenance activities, IT incubation, real estate investment trust, and carbon consulting.(ytl.com, 2016) According to (The Star Online, 2010) “With its cash reserves amounting to about RM10.8bil, analysts said YTL Corp could easily acquire assets up to US$25bil-US$30bil without the need to raise more money. It had been reported that the group was looking at acquisition opportunities in the water utilities, power generation and cement businesses, especially in China where it wanted to grow its presence in cement and power generation.” Therefore...
Words: 1843 - Pages: 8
...– Sustainable performance in the construction industry -- a case study Introduction Cement was invented in England in 1824 and is a key ingredient in concrete. Every year the average family uses one tonne of cement without even knowing it. No house, school, bridge or road would be built without it. Concrete is the second most consumed substance in the world after water. It is made from aggregate, cement and water and can be mixed on building sites or supplied ready-mixed from a concrete plant. The UK’s first readymixed concrete plant was set up by a company called Ready Mixed Concrete (RMC) in the 1930s. In 2005, CEMEX acquired RMC. Today CEMEX is one of the world’s largest building materials companies. It is a leading supplier of aggregates (sand, gravel and crushed rock), cement and readymixed concrete. It also produces asphalt, concrete blocks and mortar and has a significant share of those markets. It operates in more than 50 countries and employs over 50,000 people. CEMEX UK has three cement plants, nearly 60 quarries, 40 asphalt plants and over 200 readymix plants. CEMEX’s customers range from multinational building companies to individuals building their own homes. In the UK, CEMEX generates £1 billion in annual sales. The expanding UK economy has seen an increase in the demand for roads and buildings. CEMEX plays an essential role in contributing to creating Britain’s infrastructure. CEMEX • Cement • Ready-mix concrete. • Aggregates ...
Words: 2488 - Pages: 10
