TABLE OF CONTENTS
2. Indian Cement Industry Analysis4
3. Aditya Birla Group9
4. Ultra Tech Cement14
1. Cement Demand Drivers5
2. Hindalco Net Sales11
3. Birla Nuvo Consolidated Revenues12
4. Birla Nuvo Revenue Mix12
5. Ultra Tech Net Earnings16
6. Ultra Tech Net Worth16
7. Movement of Share Prices of Ultra Tech17
1. Cement Dispatch Growth5
2. Ultra Tech Sales Volume14
3. Ultra Tech Sales Realisation15
4. Financial Highlights of Ultra Tech17
5. Ultra Tech and its Competitors18
The Indian cement industry is on a roll. Driven by a booming housing sector, global demand and increased activity in infrastructure development such as state and national highways, the cement industry has outpaced itself, ramping up production capacity, attracting the top cement companies in the world, and sparking off a spate of mergers and acquisitions to spur growth. The recent boom in the housing and construction industry in India has worked wonders for cement manufacturing companies with capacity utilization crossing the 100 per cent mark for the first time in January 2007.
Globally, India is the second largest producer of cement. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscals’ total production of 147.8 mt. Of this, 9.3 million tone of cement was exported. The Indian cement industry comprises 130 large cement plants and 365 mini-cement plants, with installed capacities of 165 million tones per annum (tap). Large cement plants accounted for over 94 per cent of the total installed capacity.
The booming demand for cement, both in India and abroad, have attracted global majors to India. In 2005-06, four of the top-5 cement companies in the world entered India through mergers, acquisitions, joint ventures or Greenfield projects. These include France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's Heidelberg Cements.
Despite the growth of the Indian cement industry, India's per capita production of 115 kilograms per year lags the world average of over 250 kilograms and China's production of more than 450 kilograms per year. Clearly there remains room for growth in the industry in India.
This Project is an Analysis on Indian Cement Industry and Ultra Tech Cement.
INDIAN CEMENT INDUSTRY ANALYSIS
The Indian cement industry with a total capacity of about 200 m tonnes (MT) in FY09 is the second largest market after China. The key drivers for cement demand are real estate sector, infrastructure projects and industrial expansion projects. Among these, real estate sector is the main key driver and accounted for almost 55% in FY 07. A few of the leading manufacturers are the UltraTech/Grasim combine, Dalmia Cements, India Cements, and Holcim etc. With the boost given by the government to various infrastructure projects, road networks and housing facilities, growth in the cement consumption is anticipated in the coming years. According to Jyotiraditya Scindia, Minister of State for Commerce and Industry, cement production could rise to 236.16 MT in FY11 and touch 262.61 MT in FY12. With almost total capacity utilization levels in the industry, cement dispatches have maintained a 10 per cent growth rate. Total dispatches grew to 170 MT during 2007–08 as against 155 MT in 2006–07.Moreover, cement dispatches were 15.95 MT in July 2009, showing a growth of 9.92 per cent as compared to 14.51 MT in July 2008. During July 2009, cement production was 16.23 MT, registering a growth of 10.63 per cent as compared to 14.67 MT in July 2008. Between April to July 2009, cement production totaled...