fm project.docx
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MAJOR PLAYERS IN THE INDUSTRY
1. ULTRATECH CEMENT LTD.
Ultratech Cement was incorporated in 2000 as Larsen & Toubro. Later it was
demerged and acquired by Grasim and was renamed as Ultra Tech Cement in 2004.
Today Ultatech cement a part of Aditya Birla group, is the country’s largest exporter
of cement clinker. UltraTech Cement Limited has an annual capacity of 52 million
tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast
Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready
mix concrete (RMC). All the plants have received ISO 9001 certification.
The company has 11 integrated plants, one white cement plant, one clinkerisation
plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in Bahrain and
Bangladesh each and five terminals, four in India and one in Sri Lanka. The export
markets span countries around the Indian Ocean, Africa, Europe and the Middle East.
Narmada Cement Company Limited was amalgamated with UltraTech in May 2006,
while Samruddhi Cement Limited was amalgamated with UltraTech Cement Limited
in July 2010. UltraTech Cement Middle East Investments Limited, a wholly owned
subsidiary of the Company acquired management control of ETA Star Cement
together with its operations in the UAE, Bahrain and Bangladesh in September, 2010
UltraTech's other subsidiaries are Dakshin Cements, Harish Cements, UltraTech
Ceylinco (P) and UltraTech Cement Middle East Investments.
FINANCIAL PERFORMANCE OF ULTRATECH
As in March 2014, the company had production capacity of 53.9mn tons of cement
per annum (51mn tons in India and 3mn tons in subsidiaries abroad). In the financial
2013, UltraTech commissioned a 3.3mn ton clinkerisation plant at Rawan,
Chhattisgarh, a 1.55mn tons grinding unit at Hotgi, Maharashtra and additional 0.6mn
tons cement grinding capacity at Gujarat. The company invested also in a wall-care
putty plant of 0.4mn tons at Katni, Madhya Pradesh and port based bulk terminal of
0.5mn tons per annum at Cochin. In September 2013, Ultra Tech acquired the Gujarat
Cement Unit of JCCL with 3.6mn tons clinker and 2.4mn tons cement capacity, as
well as, a grinding cement unit with 2.4mn tons capacity. After the acquisition the
company’s debt-to-equity ratio was 0.28.
Mar-11 Mar-12 Mar-13 Mar-14 Mar-150.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
SALES VOLUME(IN CRORES)
2011 2012 2013 2014 20150
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
DEBT-EQUITY RATIO
DEBT-EQUITY RATIO
2011 2012 2013 2014 20150
100
200
300
400
500
600
700
800
BOOK VALUE PER SHARE
BVPS
2. ACC LTD.
Associated Cement Companies Ltd is among the top cement producers in India. The company was
established in 1936 and operates in the cement and ready-mix concrete manufacturing segments. In
2005, after the acquisition of Ambuja Cement India Ltd by the Swiss-based Holcim, the later made
an open offer to the shareholders of Associated Cement Companies and through ACIL increases its
holdings to 34.69% from 13.8%. As of 2005, the financial accounting year of the company was
changed to match the calendar year. In 2006, the company was renamed to ACC Limited. In 2011,
ACC installed the world’s largest kiln at its cement plant in Wadi, Karnataka with a capacity of
12,500 tonnes per day. Cement sales account for almost 95% of the company’s revenue. ACC
Limited share are traded on the Bombay Stock Exchange and the National Stock Exchange of India.
FINANCIAL PERFORMANCE OF ACC
2011 2012 2013 2014 20150
20
40
60
80
100
120
DIVIDEND PER SHARE AND EARNINGS PER SHARE
DPS(%) EPS(RS. PER SHARE)
3. SHREE CEMENT
Shree Cement is a leading cement company in north India, with a current total capacity of 15.5
MTPA spread across Rajasthan (13.7 MTPA) and Uttarakhand (1.8 MTPA). The company's cement
plants are located in Beawar, Ras, Khushkhera, Jobner (Jaipur) and Suratgarh in Rajasthan and
Laksar (Roorkee) in Uttarakhand. It is one of the lowest-cost cement producers in north India,
primarily because of its captive power plant and lesser power consumption per tonne of cement, and
lower freight cost as its grinding units are close to demand centers. Shree Cement also has a power
generation capacity of 570 MW with plants located in Beawar and Ras in Rajasthan. Shree Cement
is listed on the Bombay Stock Exchange and the National Stock Exchange.
FINANCIAL PERFORMANCE OF SHREE CEMENTS
2009-10 2010-11 2011-12 2012-13 2013-140
50
100
150
200
250
300
350DIVIDEND PER SHARE AND EARNING PER SHARE
DPS EPS
2009-10 2010-11 2011-12 2012-13 2013-140
20
40
60
80
100
120
140
160
CEMENT AND CLINKER PRODUCTION (IN LAC TON)
CEMENT CLINKER
2010 2011 2012 2013 20140
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
DEBT-EQUITY RATIO
DEBT-EQUITY RATIO
4.
RAMCO CEMENTS
Ramco Cement is the fifth largest cement producer in India. The company is the flagship firm of
Ramco Group and is headquartered in Chennai. The main product of Ramco Cement is Portland
cement, manufactured in eight state-of-the-art production facilities that includes integrated cement
plants (three in Tamil Nadu and one in Andhra Pradesh and Karnataka) and grinding units (two in
Tamil Nadu and one in West Bengal) with a total production capacity of 16mn tonnes per annum.
The firm also operates two packing terminals and a research centre.
Ramco Cement also produces ready-mix concrete and dry mortar products and operates one of the
largest wind farms in India. In 2012, the company completed the projects for installing a roll press
mill at Ramasamy Raja Nagar cement plant and for increasing the cement grinding capacity at
Salem grinding unit. Ramco Cement is listed on the Bombay Stock Exchange and the National
Stock Exchange of India.
FINANCIAL PERFORMANCE OF RAMCO CEMENTS
2010 2011 2012 2013 20140
200
400
600
800
1000
1200
1400
1600
526 570785
11031352
BOOK VALUE PER SHARE
BOOK VALUE PER SHARE
5. AMBUJA CEMENTS LIMITED
Ambuja Cements Ltd (ACL), a part of a global conglomerate Holcim, is one of India’s leading
cement manufacturers and has completed over 25 years of operations. The company, initially called
Gujarat Ambuja Cements Ltd, was founded by Narotam Sekhsaria in 1983 in partnership with
Suresh Neotia. Global cement major Holcim acquired management control of Ambuja in 2006. The
Company has also made strategic investments in ACC Limited.
2011 2012 2013 2014 20150
20
40
60
80
100
120
140
CAPACITY AND CEMENT PRODUCTION( IN LAC TONS)
CAPACITY PRODUCTION
2011 2012 2013 2014 20150
500
1000
1500
2000
2500
3000
3500
4000
4500
SALES VOLUME
SALE
2011 2012 2013 2014 201502468
101214161820
EARNING PER SHARE, DIVIDEND PER SHARE AND DIVIDEND PAYOUT RATIO
EPS DPS DIVIDEND PAYOUT RATIO
The company has a significant presence across western, eastern and northern markets of India as a
brand for Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC). Currently,
Ambuja has a cement capacity of 28.75 million tonnes with five integrated cement manufacturing
plants and eight cement grinding units across the country. It is the first Indian cement manufacturer
to build a captive port with four terminals along the country’s western coastline to facilitate timely,
cost effective and environmentally cleaner shipments of bulk cement to its customers.
FINANCIAL PERFORMANCE OF AMBUJA
2011 2012 2013 2014 20150
2000
4000
6000
8000
10000
12000
CEMENT SALES
SALES
2011 2012 2013 2014 20150
1
2
3
4
5
6
7
8
9
EARNING PER SHARE AND DIVIDEND PER SHARE
EPS DPS
MARKET SHARE OF EACH COMPANY
Today, the Indian cement industy is very large, second only to China in terms of installed capacity,
and has
grown at a
very fast
pace in
recent
years. The
rate of
growth over
the past
20
years has
been
phenomenal. Since 1992 India's cement production has more than quadrupled from around 50Mt/yr
to 220Mt/yr in 2011.
ACC
AMBUJA
ULTRATECH
INDIA CEMENTJAYPEE
SHREE
OTHERS
MARKET SHARE PIE(2014)
Although the Indian cement industry has some multinational cement giants, like Holcim and
Lafarge, which have interests such as ACC, Ambuja Cement and Lafarge Birla Cement, the Indian
cement industry is broadly home-grown. Ultratech Cement, the country's largest firm in terms of
2011 2012 2013 2014 20150
0.005
0.01
0.015
0.02
0.025
0.03
0.035
DEBT-EQUITY RATIO
DEBT-EQUITY RATIO
cement capacity, holds around 18% of the domestic market, with ACC (50%-owned by Holcim)
and Ambuja (50%-owned by Holcim) having 11% and 10% shares respectively.
Many of the remaining dozen top players are Indian and are (in order of diminishing market share);
Jaypee cement(8%), Shree cement( 5%).
Between them the top 12 cement firms have around 70% of the domestic market. Around 100
smaller players produce and grind cement on a wide range of scales but are often confined to small
areas.