Cement Industy

Only available on StudyMode
  • Topic: Capitalism, Herfindahl index, Portland cement
  • Pages : 4 (785 words )
  • Download(s) : 80
  • Published : April 16, 2013
Open Document
Text Preview
Industrial Organization

Project Outline

(Industry- Cement)

Submitted by:

Shikha Chaurasia (600)

Kshama (577)

Maanya Kaushik (582)

Anupam Nath (586)

INTRODUCTION

India is the second largest producer of cement in the world after China. The cement industry is experiencing a boom on account of the overall growth of the Indian economy primarily because of increased industrial activity, flourishing real estate business, growing construction activity, and expanding investment in the infrastructure sector. The performance of the industry, under different policy regimes, truly establishes that decontrol of the industry and liberalization of the economy has led to remarkable improvement in the indicators such as installed capacity, capacity utilization, per capita consumption and exports.

OBJECTIVES

This study is about the Cement Industry sector. We are going to study the competition level among the top 10 leading cement industries in India. We will choose a leading industry in the cement sector and do a detailed analysis of the chosen firm. We will also do a comparative analysis of two firms of this sector. We are going to evaluate the profitability of the industries in the same sector. Thereby we will calculate the concentration of market share and nominal rate of return of the chosen industries.

METHODOLOGY

The tools that we are going to use for studying the different perspectives of the sector are the following:

• Herfindahl-Hirschman Index (HHI) -This index calculates the sum of the percentage market share of all the firms in the industry.  A lower HHI number suggests higher levels of competition and vice-versa. The HHI number addresses issues like market shares and competition amongst the large firms. 

• Porter’s Five-Forces Model- The structure and competitive scenario of the Indian cement industry can be described concisely with the help of Porters’ notable Five-Forces Model. Wherein...
tracking img