Indian Cement Market Report: 2011 Edition
Cement industry has a vital role to play in the infrastructural and economic development of any country. India is a fast developing country providing enormous scope for the development of cement industry. The cement industry in India had been completely under the supervision and control of the government but after the economic reforms, the scenario has changed significantly. But still the government plays a major role in regulating the prices.
Demand for cement depends on industrial activity, real estate and construction activity. Indian cement industry has grown largely due to the rising demand from the housing sector, increased activity in infrastructure and construction recovery. Even in the tough conditions, Indian cement industry has been able to sustain its growth. Production and capacity of cement has been rising over the years. Number of plants in cement industry with more than one million tones capacity have also increased. However, the exports have been decreasing over the years.
Cement industry has a large number of fragmented firms. The large firms are consolidating by acquiring smaller players ones. High debt levels have adversely impacted the profitability of several cement companies.
The report analyzes the cement industry in India focusing on demand supply matrix in various regions. The report is aimed at providing a better understanding of the market trends regarding price movement and output growth rate. Issues and challenges which pose or are likely to pose threat to the cement industry have also been included. Competition prevailing among the existing players in the cement industry has been discussed along with the profiling of top cement manufacturers.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
Demand for cement depends on industrial activity, real estate and construction activity. Indian cement industry has grown largely due to the rising demand from the housing sector, increased activity in infrastructure and construction recovery. Even in the tough conditions, Indian cement industry has been able to sustain its growth. Production and capacity of cement has been rising over the years. Number of plants in cement industry with more than one million tones capacity have also increased. However, the exports have been decreasing over the years.
Cement industry has a large number of fragmented firms. The large firms are consolidating by acquiring smaller players ones. High debt levels have adversely impacted the profitability of several cement companies.
The report analyzes the cement industry in India focusing on demand supply matrix in various regions. The report is aimed at providing a better understanding of the market trends regarding price movement and output growth rate. Issues and challenges which pose or are likely to pose threat to the cement industry have also been included. Competition prevailing among the existing players in the cement industry has been discussed along with the profiling of top cement manufacturers.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
1. CEMENT INDUSTRY
1.1 Introduction
1.2 Manufacturing Process for Cement
1.3 Global Cement Market Overview
Production Volume
Regional Breakdown
2. CEMENT INDUSTRY IN INDIA
2.1 Market Overview
Demand Growth
Production Volume
Capacity Growth
Export Volume
2.2 Key Statistics about Cement industry in India
Debt Level
CapEx
Key Financials
3. REGIONAL ANALYSIS OF CEMENT INDUSTRY
Northern Region
Western Region
Southern Region
Eastern Region
Central Region
4. MARKET DYNAMICS
4.1 Major Trends
4.1.1 Monthly Price Movements of Cement
4.1.2 Cement Output Growth Rate
4.1.3 Trend in Blending Ratio
4.1.4 Asset Turnover of the cement industry
4.2 Growth Drivers
4.2.1 Increase in Infrastructural spending
4.2.2 Annual Housing stock additions
4.2.3 Increase in Bank Loans to Construction and Infrastructure sectors
5. KEY ISSUES
5.1 Cost of Raw Material and Substitutes
5.2 Environmental Issues
5.3 Tax on cement
5.4 High Transportation Cost
5.5 Labour issues
5.6 Lack of supply chain
6. CEMENT INDUSTRY - COMPETITIVE LANDSCAPE
Competitive Overview
Financial Comparison
Capacity Addition
7. COMPANY PROFILE
7.1 ACC
Company Overview
Key Financials
Business Strategies
Acquisitions and Modernization
Focus on Human Resources
7.2 Ambuja Cement Ltd
Company Overview
Key Financials
Business Strategies
Focus on Excellence
People-centric approach
‘Learning Culture’ in Organization
7.3 UltraTech Cement
Company Overview
Key Financials
Business Strategies
Internal Control System
Focus on Human Resources
Research & Development Activities
7.4 India Cements
Company Overview
Key Financials
Business Strategies
Value Enhancing
Adequacy of Internal Control System
Maintaining Industrial Relations and R&D
8. MARKET OUTLOOK
8.1 Market Forecast
8.2 Forecast Methodology
8.2.1 Dependent and Independent Variables
8.2.2 Correlation Analysis
8.2.3 Regression Analysis
1.1 Introduction
1.2 Manufacturing Process for Cement
1.3 Global Cement Market Overview
Production Volume
Regional Breakdown
2. CEMENT INDUSTRY IN INDIA
2.1 Market Overview
Demand Growth
Production Volume
Capacity Growth
Export Volume
2.2 Key Statistics about Cement industry in India
Debt Level
CapEx
Key Financials
3. REGIONAL ANALYSIS OF CEMENT INDUSTRY
Northern Region
Western Region
Southern Region
Eastern Region
Central Region
4. MARKET DYNAMICS
4.1 Major Trends
4.1.1 Monthly Price Movements of Cement
4.1.2 Cement Output Growth Rate
4.1.3 Trend in Blending Ratio
4.1.4 Asset Turnover of the cement industry
4.2 Growth Drivers
4.2.1 Increase in Infrastructural spending
4.2.2 Annual Housing stock additions
4.2.3 Increase in Bank Loans to Construction and Infrastructure sectors
5. KEY ISSUES
5.1 Cost of Raw Material and Substitutes
5.2 Environmental Issues
5.3 Tax on cement
5.4 High Transportation Cost
5.5 Labour issues
5.6 Lack of supply chain
6. CEMENT INDUSTRY - COMPETITIVE LANDSCAPE
Competitive Overview
Financial Comparison
Capacity Addition
7. COMPANY PROFILE
7.1 ACC
Company Overview
Key Financials
Business Strategies
Acquisitions and Modernization
Focus on Human Resources
7.2 Ambuja Cement Ltd
Company Overview
Key Financials
Business Strategies
Focus on Excellence
People-centric approach
‘Learning Culture’ in Organization
7.3 UltraTech Cement
Company Overview
Key Financials
Business Strategies
Internal Control System
Focus on Human Resources
Research & Development Activities
7.4 India Cements
Company Overview
Key Financials
Business Strategies
Value Enhancing
Adequacy of Internal Control System
Maintaining Industrial Relations and R&D
8. MARKET OUTLOOK
8.1 Market Forecast
8.2 Forecast Methodology
8.2.1 Dependent and Independent Variables
8.2.2 Correlation Analysis
8.2.3 Regression Analysis
LIST OF CHARTS
Chemical Composition of Cement
Manufacturing Process of Cement
Market Share of Top Five Companies (1982-2010)
Global Production of Cement (2009)
Global Production of Cement (2010E)
Global Cement Production (2010)
Demand of Cement in India (2005-2010)
Breakdown of Demand of Cement- By Sector (2010)
Production of Cement (2005-2010)
Capacity of Cement (2005-2010)
Export of Cement (2005-2010)
Number of Plants with Capacity of One Million Tonnes & Above (2005-2010)
Cement Demand for 11th FYP -By Sector (FY2008-12E)
Monthly Cement Dispatch (April 2009-April 2011)
Debt Level of Cement Industry (2002-2010)
Capex Funded through Internal Accruals (2003-2009)
Capacity of Cement- Geographical Segmentation (2010)
Capacity-Demand of Cement in India-By Region (2010)
Demand and Supply Utilization in North (1Q09-4Q12E)
Cement Consumption v/s Supply (2009)
Monthly Price Movements of Cement (2009-10)
Cement Output Growth Rate (2008-2010)
Yearly Trend in Blending Ratio (2005-2011E)
Asset Turnover Trend of Cement Industry (2002-10)
Infrastructural Spending- 10th & 11th Five Year Plans (2003-2012E)
Annual Housing Stock Additions (2005-2014E)
Bank Loans Outstanding to Construction/Infrastructure Sectors (Mar 2006 - Sep 2010)
Top Manufacturers-By Region (FY 2010)
Net Sales of ACC Ltd (2006-2010)
Components of Net Sales -% (2010)
Sales of Ambuja Cement (2007-2010)
Net Sales of Ultratech Cement (2005-10)
Sales of India Cements (2006-2011)
Forecasted Demand of Cement in India (2009-2014E)
Chemical Composition of Cement
Manufacturing Process of Cement
Market Share of Top Five Companies (1982-2010)
Global Production of Cement (2009)
Global Production of Cement (2010E)
Global Cement Production (2010)
Demand of Cement in India (2005-2010)
Breakdown of Demand of Cement- By Sector (2010)
Production of Cement (2005-2010)
Capacity of Cement (2005-2010)
Export of Cement (2005-2010)
Number of Plants with Capacity of One Million Tonnes & Above (2005-2010)
Cement Demand for 11th FYP -By Sector (FY2008-12E)
Monthly Cement Dispatch (April 2009-April 2011)
Debt Level of Cement Industry (2002-2010)
Capex Funded through Internal Accruals (2003-2009)
Capacity of Cement- Geographical Segmentation (2010)
Capacity-Demand of Cement in India-By Region (2010)
Demand and Supply Utilization in North (1Q09-4Q12E)
Cement Consumption v/s Supply (2009)
Monthly Price Movements of Cement (2009-10)
Cement Output Growth Rate (2008-2010)
Yearly Trend in Blending Ratio (2005-2011E)
Asset Turnover Trend of Cement Industry (2002-10)
Infrastructural Spending- 10th & 11th Five Year Plans (2003-2012E)
Annual Housing Stock Additions (2005-2014E)
Bank Loans Outstanding to Construction/Infrastructure Sectors (Mar 2006 - Sep 2010)
Top Manufacturers-By Region (FY 2010)
Net Sales of ACC Ltd (2006-2010)
Components of Net Sales -% (2010)
Sales of Ambuja Cement (2007-2010)
Net Sales of Ultratech Cement (2005-10)
Sales of India Cements (2006-2011)
Forecasted Demand of Cement in India (2009-2014E)
LIST OF TABLES
Industry Aggregates (2010)
Demand-Supply Matrix-By Region (2007-2013E)
Pace of Capacity of Major Players
Debt/Equity Ratio of Major Companies
Cost Structure (as % of Net Sales) OND2009 v/s OND2010
Dependent & Independent Variables (2006– 2010)
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output
Industry Aggregates (2010)
Demand-Supply Matrix-By Region (2007-2013E)
Pace of Capacity of Major Players
Debt/Equity Ratio of Major Companies
Cost Structure (as % of Net Sales) OND2009 v/s OND2010
Dependent & Independent Variables (2006– 2010)
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output
