Industrial Relations Scenario in Cement Industry of Gujarat

Topics: Cement, Employment, Wage Pages: 8 (3105 words) Published: October 7, 2010

Cement industry is one of the major and oldest established manufacturing industries in the Indian economy. It is an indigenous industry in which the country is well endowed with all the necessary raw materials, skilled manpower, machinery, equipments and technological know-how. It is both basic and consumer industry. Today it is one of the key and capital-intensive industries in India. It produces cement, which is known as the builder of modern civilization and is a wonderful material having binding properties. Cement is required by firms, factories households and for construction of dams, highways and bridges etc. Cement is known as “Magic Powder”. It has contributed to the development of modern civilization in a number of ways and therefore, it ranks as the number one construction material. Therefore cement industry occupies an important position in the arena of basic and core industry. Cement industry in India occupies a position of predominance as the basic infrastructure industry for development. Today in India there are more than 115 large plants having installed capacity of more than 125 million tones. The industry has recently undertaken comprehensive modernization programmes equipped with state of the art technology and employees a work force of around 1.55 lakhs. It also contributes in a very substantial manner by way of excise duty and sales tax of over Rs.4000 crore to the national exchequer. India is the second largest cement producer in the world. It represents 5.72% of world production FINDINGS OF THE STUDY In order to study Industrial Relation Scenario in Cement Industry of the Gujarat, author selected seven large and 13 mini plants. These units were sent a structured questionnaire and data and information were collected, classified, analyzed and evaluated for the conclusion. Following are the major findings of the study. 1. There are more than 10 large and 30 mini cement plants engaged in manufacturing of different varieties of cement in Gujarat. Among them Gujarat Ambuja Cement Ltd., L & T Cement Ltd. and Tata Chemicals Ltd. are pioneer cement manufacturing units. They contribute a lot in the economic development of the state and the nation. Cement industry in Gujarat plays an important role in the economic and infrastructure development of the State. It also provides employment to thousands of people. Limestone is the basic raw material required to manufacture cement. The reserves of limestone are more on coastal areas; therefore concentration of cement units, particularly large units, is more near coastal areas of Gujarat. Mini cement plants are scattered over Gujarat. However, more mini plants are nearer to the coastal areas. The biggest limestone reserve is 19,482 mt. in Andhra Pradesh, while the smallest lime stone reserve is 112 mt. In Nagaland. Gujarat has 11,107 mt. Limestone reserve as against total reserve of 79,731 mt. It amounts to 13.9% of the total reserve in India. India is the fourth largest cement producer in the world. The first three being Russia, Japan and the U.S.A. In India, Gujarat is the fifth largest state in terms of installedproduction capacity. Gujarat has 11.25 million tones install capacity as against 125.40 million tones of the country. Further Gujarat has 66% utilization capacity. The first cement unit was laid in 1914 by the Indian Cement Company Limited at Porbandar in Gujarat. Thus Gujarat is the first to initiate establishment of cement industry in India. The latest, largest and most modern cement plant has also been recently established in Gujarat, namely Sanghi Industries Ltd. Kutch. More than four lakh people are directly employed in the cement industry of India. While in Gujarat more than ten thousand people are employed directly and an equal number of people employed indirectly in the cement units. The cement industry was liberalized in 1980 and the wind of liberalization swept aside technological...
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