Indian Cement Industry-4 Major Players

Only available on StudyMode
  • Download(s) : 281
  • Published : February 18, 2013
Open Document
Text Preview
Somaiya Institute of Management Studies & Research,
Mumbai.

Study of four major Indian
brands in the CEMENT
Sector.
A comparative analysis.
PARNAMOY DUTTA
Roll No. : 13
PGDM (IB)

2012-14

Contents
1. Introduction

1

2. Major Players in India

2



ACC Limited

2

o History
o Slogan and Vision

4

o Major milestones


2

4

Ambuja Cements Limited

6

o History
o Slogan and Vision

7

o Major milestones


6

7

UltraTech Cement Limited

8

o History
o Slogan and Vision

9

o Major milestones


8

9

JK Cement Limited

11

o History

11

o Slogan and Vision

12

o Major milestones

12

3. Comparison

13



Market Share of Major Companies

13



Pricing in the last few months

13



Distribution

14



Promotions

16

4. Observations on: Comparing

18



Production in MnT (million tonnes)

18



Profit after TAX in ` Crores

18



Sales Volume in MnT

19



Net Worth in ` Crores

19

5. Cement Industry: Overview

20

6. Bibliography

24

Introduction
India is one of the emerging markets in the global economy. As a result there is a positive growth rate in the infrastructure and housing markets. Regular government spending on the rural sector and infrastructure spend accomplished by rise in the number of infrastructure projects implemented by the private sector will also drive forward the growth in domestic cement demand. According to forecast it is expected that due to this positive vibe in the market India’s cement production will grow at a compound annual growth rate of 12% during 2012-14 to reach 303 million metric ton. Cement Manufacturing Association is targeting to achieve 550 Million metric ton capacities by the year 2020. It can be also assumed that with relaxing of FDI norms a number of foreign players can also enter the industry thereby increasing the competitiveness and quality of the product delivered. Also with the increase of number of production units the advantages of industrialization will also enrich our economical situation.

India is the 2nd largest producer of cement in world after China. There are almost 137 large and 365 mini cement plants. Leading players in the industry include ACC limited, UltraTech Cement Limited, Ambuja Cements Limited, JK Cement Limited, etc. Cement acts as an adhesive that holds concrete together and is hence vital for meeting the economy’s needs of housing & accommodation and necessary infrastructure for roads, bridges, schools, hospitals, offices and other utilities.

The demand for cement depends on the rate of growth and level of development of the economy. Considering the present scenario of raw materials needed for construction it is well understood that there is no substitute for cement hence the demand for cement is price inelastic.

In this report we will look at the major players in the Indian market today. Then we will do a comparative analysis between them. And finally we will decipher the major observation on the major players and the industry as a whole.

Let us now look at the major players in India.

2

Major Players
ACC Limited:
History:
ACC Limited was formed in the 1936 when ten existing
companies came together to merge to form a single entity.
Hence the name Associated Cement Companies Limited. These companies belong to four prominent business groups Tatas, Khataus, Killick Nixon and F E Dinshaw groups. F E Dinshaw is recognized as the founder of ACC. This merger was the first of its kind even before the term mergers and acquisitions were coined.

The Tata group was with the group till 1999. By the end of 2000 the Tata group sold all 14.45 per cent of its shareholding in ACC to subsidiary companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC. In a significant turn of events in 2005 a new association of Holcim...
tracking img