India Cements

CHENNAI SUPER KINGS AND INDIAN CEMENTS

ABSTRACT

India Cements, a household name in Tamil Nadu and Andhra Pradesh, decided to expand into the north Indian markets of Rajasthan, Gujarat and Madhya Pradesh. The Chennai-headquartered company bought a manufacturing unit in Rajasthan. The idea was good, but the results were disappointing. Local dealers shied away from India Cements.

ABOUT THE INDUSTRY

Cement is one of the core industries which plays a vital role in the growth and development of a nation. The cement industry in India has been expanding significantly on back of increasing infrastructure activities and demand from housing sector. Keeping in line with the technological world, the Indian cement industry has transited itself into a more advanced one. At present, the Indian cement industry is positioned on the second rank globally and comprise of 183 large and 365 mini cement plants. Moreover, the Indian cement majors, including ACC Ltd, Shree Cement Ltd and Ultratech, have signed a co-operation pact to support low-carbon investments in India. The pact was signed in Geneva with member companies of the World Business Council (WBC) for Sustainable Development’s Cement Sustainability Initiative and International Finance Corporation (IFC). The roadmap will pose as a possible transition path for the Indian cement industry to reduce its direct emissions by 18 per cent by 2050. This is the first roadmap to focus on one specific industrial sector in a single country, as per a WBC release.

Market Size:

A RNCOS report titled “Indian Cement Industry Outlook 2015” estimated that the total installed capacity of cement in India will increase with a compound annual growth rate (CAGR) of around 7 per cent during 2012-13 to 2014-15. The growth of the Indian economy has slowed down in recent times on account of the rising inflation, high interest rates, high prices of commodities and fuels. The growth prospects of the cement industry are closely linked to the growth of the...