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34 Harish Pai

|

40 Atul Patel

| 43 Mayank Paua

| 49 Vivek Savargankar

CEMENT

INDUSTRIESBatch : MFM ( 2010 2013) Subject : Financial Management

CONTENT

CONTENTS1

INTRODUCTION TO CEMENT INDUSTRIES CEMENT INDUSTRIES SECTOR STASTICS SNAP SHOT - ACC SNAP SHOT - AMBUJA SNAP SHOT SHREE CEMENTS SNAP SHOT J K CEMENTS MICHEAL PORTERS MODEL IMPACT OF BUDGET ON CEMENT INDUSTRIES. COMPARATIVE ANALYSIS REFERENCES

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INTRODUCTION . MANUFACTURING PROCESS

CEMENT TYPES & MAIN INGREDIENTS

CEMENT MANUFACTURING PROCESS

CEMENT INDUSTRIES

CEMENT INDUSTRIES >> OVER THE YEARS.

Description Installed Capacity Production

198229 MTPA 21 MTPA

198956 MTPA 42 MTPA

2008207 MTPA 177 MTPA

2009252 MTPA 195 MTPA

Indian cement Industry with total capacity of 240 million tones (2010) is the second largest after China. Cement industry is dominated by 20 companies who account for over 70% of the market. Individually no company accounts for over 12% of the market. The major players like Ultratech and ACC have been quiet successful in narrowing the gap between demand and supply. Similarly northern and southern region consume around 20%-30% cement while the central and western region are consuming only 18%-16%. Demand has picked up in East and West, resulting in lower inventory levels and price hikes of ~INR 10/bag in the first week of January 2011

ACC >> SNAPSHOT

>> SNAPSHOT

India's foremost manufacturer of cement Mr N. S. Sekhsaria Chairman Established 1936, as a result of merger of 10 Companies. Only Company with nationwide presence capacities in all five regions. Production Capacity 22.63 MTPA (2009) It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers. Net Profit of INR 1606 Cr. 15 Plants Across India.

ACC >> SNAPSHOT

FINANCIAL PERFORMANCE OF ACC

ACC >> SNAPSHOT

MDA FOR ACC

2009 & 2008 Total consolidated income for the year 2009 was Rs. 8,725 crore, an increase of 9% as compared to Rs. 7,974 crore in 2008. The expansion project of the Bargarh Plant was substantially completed during the year 1.2MT and Expansion at Wadi completed 3.2MT. Investment in building Wind Power projects : 2.5MW, Gross Generation of Power by CPP up from 1,517 Million KwH to 1733 Million KwH. Increase in Share of Power from CPP in total Power Consumption from 64% to 70% 100% equity stake in National Limestone Company Private Limited (NLCPL) Power : In 2009, gross generation of power by our CPPs was 1733 million kwh which was 14% higher than the gross generation of 1517 million kwh in 2008.

AMBUJA CEMENT >> SNAPSHOT

>> SNAPSHOTAmbuja Cements is a Joint Venture between the public sector Gujarat Industrial Investment Corporation (GIIC) and Narottam Sekhsaria & Associates. The company was incorporated in the year 1981 as Ambuja Cements Pvt Ltd and it was rehabilitated into a public limited company on 19th March 1983 as Gujarat Ambuja Cements Ltd. The Company has five integrated cement manufacturing plants and eight cement grinding units across the country. It also has 3 Bulk Cement Terminals. The company name was changed from Gujarat Ambuja Cements Limited to Ambuja Cements Limited on April, 2007, the word Gujarat was dropped to reflect the true geographical presence of the company.

AMBUJA CEMENT >> SNAPSHOT

FINANCIAL PERFORMANCE OF AMBUJA CEMENT.

AMBUJA CEMENT >> SNAPSHOT

MANAGEMENT DISCUSSION & ANALYSIS (AMBUJA CEMENTS)

2009 During 2009 a new bulk cement terminal started operation at Kochi, providing access to new markets in the South, and two new captive power units, each with 15 MW capacity, were commissioned at Bhatapara (Chhattisgarh) and Maratha (Maharashtra). The Company has paid an interim dividend of 60% (Rs. 1.20 per share) during the year. The Company has built a large network of over 6,000 dealers and 20,000 retailers across 18 states in India.

SHREE CEMENT >> SNAPSHOT

>> SNAPSHOTShree Cement Ltd is one of India`s premier cement makers and the largest in North India. They have three brands under their portfolio, namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are located at Beawar, and Ras in Rajasthan. They are also having the grinding units in Khushkhera in Rajasthan. The company is headquartered in Kolkata, India. Shree Cement Ltd was incorporated in the year 1979. The company was promoted by Calcutta-based industrialists P D Bangur and B G Bangur. It has more than quadrupled its capacity in the last 5 years to reach present cement capacity of 12 million tons p.a.

SHREE CEMENT >> SNAPSHOT

FINANCIAL PERFORMANCE OF SHREE CEMENTS

SHREE CEMENT >> SNAPSHOT

MDA FOR SHREE CEMENTS

2009 & 2010 Company implemented Performance Management System (PMS) software to optimize its power consumption. R&D cell made a breakthrough by undertaking a unique initiative of producing synthetic gypsum which will help reduce usage of natural gypsum which is a limited natural resource. A patent has been applied for this unique achievement Implemented the Waste Heat Recovery Project. The project serves the dual purpose of reducing the emission of waste gases into the atmosphere as well as conserves the natural resources. Installed air cooled condensers at its Beawar Power plants to conserve water consumption..

J K CEMENT >> SNAPSHOT

>> SNAPSHOT

LEADING CEMENT PRODUCER WITH DOMINANT PRESENCE IN NORTH INDIA Cement operations since 1975 Amongst top ten Grey Cement Producer Second Largest Producer of White Cement Capacity of 7.5 MTPA, across 4 cement plants 105 Mw installed power capacity Net Profit 224.55 Crores 2009-10 4 Cement Plants 2000 employees Mudhol Plant Commissioned

J K CEMENT >> SNAPSHOT

FINANCIAL PERFORMANCE OF J K CEMENT

J K CEMENT >> SNAPSHOT

MDA FOR J K CEMENT

MDA 2008-2010 Grey cement capacity has grown from 3.55 MT to 7.5 MT in just 5 years Increase in installed power capacity to 105 Mw, 7 times increase in 5 years Gross Sales in 2009-2010 Rs. 2248 Crores The Greenfield Grey Cement Plant at Karnataka with installed capacity of 3 MTPA was commissioned in September 2009 and commercial dispatches started from October 2009. 50 M.W Coal Based Captive power plant has also been commissioned at Karnataka plant. Grey cement production increased to 4.28 MT from 3.79 MT Dividend Payout of Rs. 6 per share highest ever so far.

BUDGET IMPACT

BUDGET IMPACT (2011-12)

The basic customs duty on two critical raw materials for this industry viz. petcoke and gypsum has been reduced to 2.5% from 5%. Impact This would result in lower input cost and pressure on operating profit margin could marginally ease. The FII limit for investment in corporate bonds , with residual maturity of over five years issued by companies in infrastructure sector, is being raised by an additional limit of US Dollar 20 billion taking the limit to US Dollar 25 billion. For Infrastructure development in 2011-12 INR 2,14,000 crore is being made for this sector, which is 23.3 per cent higher than current year. Capital goods imported for the expansion of existing mega or ultra mega Power projects enjoy a concessional basic customs duty of 2.5 per cent and full exemption from CVD.

MICHAEL PORTER S FIVE FORCE MODELSUPPLIER POWER BARGAINING POWER HIGH MONOPOLISTIC CONTROL OF EXTERNAL COST ELEMENTS ( COAL, POWER, TRANSPORTATION AND TAXES)

PORTERS FIVE FORCE MODEL

ENTRY BARRIER LOW HIGH CAPITAL INVESTIMENT, BROAD DISTRIBUTION NETWORK, ECONOMIES OF SCALE, SUPPLY > DEMAND DETER NEW ENTRANTS

THREAT OF SUBSTITUTES LOW ONLY BITUMEN IN ROADS AND ENGINEERING PLASTICS IN BUILDING, OTHERWISE NO SUBSTITUTE

RIVAL RYBARGAINING POWER OF CONSUMER LOW RISING SHARE OF RETAIL PURCHASE, DECLINING SHARE OF BULK PURCHASE BY GOVT, HAS TAKEN AWAY BPC.

DEGREE OF RIVALRY COMPETITION HIGH LARGE NO OF PLAYERS INTERMITTENT OVER CAPACITY MARGINAL PRODUCT DIFFERENTIATION HIGH EXIT BARRIER IN FORM OF SIGNIFICANT CAPITAL INVESTMENT

COMPARATIVE STATISTICS

COMPARATIVE STATISTICS

PLANTS IN INDIA.

COMPARATIVE STATISTICS

ACC J K Cement Shree Cement Ambuja

References :

Websites: -www.acclimited.com -www.shreecement.in -www.jkcement.com -www.ambujacement.com -www.moneycontrol.com -www.nseindia.com -www.indiabudget.nic.in -www.edielwiess.in

THANK YOU.