Overview of Cement Industry

University Of Wales & Management Development Institute of Singapore (MDIS) MBWD5 0922A

Subject Lecturer Course : : : Corporate Strategy (Assignment 1) Dr Keith Ng Master of Business Administration ASSIGNMENT COVER SHEET

No. 1 NAME OF MEMBER SHUBHAV GUPTA FIN No. G0874179X SIGNATURE

Submitted on Due Date? YES (Date Submitted: 30.4.2010) Submitted Soft Copy? YES (Date Submitted: 30.4.2010) Word Limit Observed? YES (No. of Words: 2090)

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TABLE OF CONTENTS

S.No 1 2 3 4 5 6 7 Contents Executive Summary Introduction PEST Analysis Porters 5 Forces Structural drivers of change Industry Life Cycle Scenarios Page No. 3 4 5 7 11 12 13

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EXECUTIVE SUMMARY The Corporate Strategy assignment is divided into 2 parts. The first part of the assignment asks us to select and analyze an industry of our own choice. I have selected the INDIAN CEMENT INDUSTRY. In this assignment, a brief history regarding the Indian Cement Industry and how it has changed over the years to become one of the largest cement markets in the world has been covered. Further on, it has the analysis of the strategic posture of the key cement players in the Indian market and the direction in which the cement industry of India is moving. To identify the structure, changes, and the drivers of change within the industry, Porter’s Five Forces, PEST Analysis and Life Cycle Model has been used. The second part of the assignment has 3 scenarios indicating possible long-term futures for the industry.

INTRODUCTION 3

CEMENT The word Cement has come from the Roman word ‘Opus Caementicium’. In general, the word cement means binder- a substance, which when gets set and hardens, binds itself independently with other substances. Joseph Aspdin, a British stonemason, invented cement way back in 1824.(Portland Cement Association 2010) INTRODUCTION TO THE INDIAN CEMENT INDUSTRY In 1914, the first licensed cement-manufacturing unit in India was set-up by the India Cement Company Ltd. With the boom in the economy-growth rate...