Industry Analysis - Cement Industry in India

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INDIAN INSTITUTE OF MANAGEMENT, INDORE

Group 6, Section - E

Industry Awareness - Cement Industry

Submitted By

Ankur Gupta

Haritha Gavva

Hariganesh Chandrasekaran

Periayyasaravana Kumar

Pranabesh Chatterjee

Rajan Kumar Jaiswal

Synroplang Garod

Table of Contents

1. Overview of the Industry 3

1. World/India Cement Industry 4

2. Major Players in the North 4

3. Major Players in the South 5

4. Major Players – Description 5

5. Analysts View 6

2. Impact of Government Regulation and Policies 6

1. Recent Developments 7

2. Tax Structure 8

3. International Players and Recent M&A Activities 9

4. Technological Trends and Innovations 10

5. Industry Life Cycle Analysis 11

6. Key Financial Performance Indicators 12

1. Key drivers of Cost 13

2. Key drivers of Profitability 13

3. Key drivers of growth 13

7. Key events in the Cement Industry 14

8. Impact of Union Budget on Cement Industry 14

Executive Summary

The cement industry has continued its growth trajectory over the past ten years. Domestic cement demand growth has surpassed the economic growth rate for the past three years. Cement demand in the country grows at roughly 1.5 times the GDP growth rate. The industry had a turnover of around US$ 7.8 billion in 2003-04 and according to CRISIL is expected to grow at a CAGR of around 7 per cent in the next five years. The key drivers for cement demand are real estate sector, infrastructure and industry expansion projects. Among these real estate sector is the key driver of cement demand. The demand for cement is closely related to the growth in the construction sector. Consequently, cement demand has been posting a healthy growth rate of around 8 per cent since 1997-98, propelled by the...