Product Type: Market Research Report
Published by: CRISIL Ltd.
Published: July 2009
Product Code: R3543-244Description Cement sector has witnessed an impressive run over the past few years, with an improvement seen across key operational parameters such as operating rates, prices and profitability. Housing sector is the single largest consumer of cement in India. Over the last 5 years, India has witnessed a real estate boom, especially in the metros and tier I cities. This has been the primary driver for cement demand, which has grown at a healthy CAGR of 9.3 per cent over the past 5 years. Going forward, CRISIL Research expects cement demand growth from housing segment to slow down. However, this will be offset to an extent by an increase in cement consumption from the infrastructure sector. In addition, an increase in independent housing projects in semi-urban and rural areas will provide support to cement demand. As a result, we expect cement demand to register a CAGR of 7.8 per cent over the next 5 years.Table of Contents Sections
Price decline to hurt profitability of cement companie
Executive Summary
1.0 Cement demand growth to slow down marginally
North: Independent housing will drive cement demand
South: IT/ITeS slowdown will negatively impact cement demand
East: Housing and Industrial investments to drive growth
West: Demand growth primarily in urban areas
Central: Demand will remain subdued
2.0 Significant capacities to be added
Capacity expansions of 90 million tonnes over next 5 years
South India will have maximum capacity additions
Existing players will have a huge share in new capacities
Blending will remain at current levels
Operating rates will dip over the next 2 years
3.0 Decline in prices to hurt profitability
Cement prices to decline over the next couple of years
Profitability will be negatively impacted
Box
1.0 Cement demand growth to slow down marginally
01 Cement demand forecasting methodology
Chart
Executive Summary
01 Indian cement industry on a map
Figures
1.0 Cement demand growth to slow down marginally
01 GDP growth, cement demand growth and multiplier
02 Break-up of cement demand
03 Break-up of cement demand from infrastructure segment
04 Cement production and consumption in North
05 Cement production and consumption in South
06 Cement production and consumption in East
07 Cement production and consumption in West
08 Cement production and consumption in Central
2.0 Significant capacities to be added
01 Installed capacity additions
02 Share in installed capacity additions by regions (2009-14)
03 Installed capacity additions by regions
04 Player-wise capacity additions
05 Blending ratio and share of blended cement
06 Cement operating rates
07 Cement incremental demand & effective capacity additions
08 North operating rates
09 South operating rates
10 East operating rates
11 West operating rates
12 Central operating rates
3.0 Decline in prices to hurt profitability
01 Cement Operating rates & Prices
Tables
3.0 Decline in prices to hurt profitability
01 Expected price decline by regions
02 Operational performance of cement companies
Sections
1.0 Industry characteristics
Industry structure
Cost elements
Cement industry - Regional in nature
Demand drivers
Evolution of the cement industry
2.0 Products and technology
Types of cement
Ready mix concrete (RMC)
White cement
3.0 Cement manufacturing process
4.0 Region-wise scenario
North
South
East
West
Central region
5.0 Player profile
Associated Cement Companies Ltd
Ambuja Cements Ltd
Grasim Industries Ltd
India Cements Ltd
Jaiprakash Associates Ltd
Madras Cements Ltd
Shree Cement Ltd
UltraTech Cement Ltd
Charts
1.0 Industry characteristics
01 Cement - Factors influencing demand
02 Cement - Factors affecting domestic supply
3.0 Cement manufacturing process
01 Dry process
02 Wet process
03 Cement manufacturing process
Figures
1.0 Industry characteristics
01 Industry structure
02 Coal requirement v/s coal allocation
03 Regionwise cement consumption
04 Infrastructure spending in India
2.0 Products and technology
01 Varietywise cement production
3.0 Cement manufacturing process
01 Production break up of processes
4.0 Region-wise scenario
01 North: Market share break up
02 Prices in north region
03 South - Market share break up
04 Prices in south region
05 East market share break up
06 Prices in east region
07 West - Market share break up
08 Prices in west region
09 Central - Market share break up
10 Prices in Central region
5.0 Player profile
01 ACC Ltd - Break up of sales
02 ACC Ltd - Cement despatches by states
03 ACC Ltd - Market share & rank by states
04 Ambuja Cements Ltd - Break up of sales
05 Ambuja Cements Ltd - Cement despatches by states
06 Ambuja Cements Ltd - Market share & rank by states
07 Grasim Industries Ltd - Break up of sales
08 Grasim Industries Ltd - Cement despatches by states
09 Grasim Industries Ltd - Market share & rank by states
10 India Cements Ltd - Break up of sales
11 India Cements Ltd - Cement despatches by states
12 India Cements Ltd - Market share & rank by states
13 Jaiprakash Associates Ltd - Break up of sales
14 Jaiprakash Associates Ltd - Cement despatches by states
15 Jaiprakash Associates Ltd - Market share & rank by states
Figures
5.0 Player profile
16 Madras Cements Ltd - Break up of sales
17 Madras Cements Ltd - Cement despatches by states
18 Madras Cements Ltd - Market share & rank by states
19 Shree Cement Ltd - Break up of sales
20 Shree Cement Ltd - Cement despatches by states
21 Shree Cement Ltd - Market share & rank by states
22 UltraTech Cement Ltd - Break up of sales
23 UltraTech Cement Ltd - Cement despatches by states
24 UltraTech Cement Ltd - Market share & rank by states
Tables
1.0 Industry characteristics
01 Industry status
02 Power & fuel requirement in cement manufacturing process
03 Events during the period of government control
04 Events during the period of partial decontrol
05 Events post decontrol
2.0 Products and technology
01 White cement - Capacity and production
4.0 Region-wise scenario
01 North - Capacity/ Production/ operating rate
02 South - Capacity/ Production/ operating rate
03 East - Capacity/ Production/ operating rate
04 West - Capacity/ Production/ operating rate
05 Central region - Capacity/ Production/ operating rate
5.0 Player profile
01 ACC Ltd
02 Ambuja Cements Ltd
03 Grasim Industries Ltd
04 India Cements Ltd
05 Jaiprakash Associates Ltd
06 Madras Cements Ltd
07 Shree Cement Ltd
08 UltraTech Cement Ltd
Section
1.0 Industry statistics
Figure
01 Industry statistics
01 Coal — International prices and landed cost of imports
Tables
01 Industry statistics
01 Capacity additions in 2008-09
02 Cement — Playerwise installed capacity trends
03 Cement — Playerwise production trends
04 Cement — Operating Rates (based on the installed capacity)
05 Cement — Aggregate producer market shares
06 Mini cement plant — Regionwise capacity trends
07 Mini cement plants — Regionwise production trends
08 Mini cement plants — Regionwise operating rates
09 Cement — Statewise trends in per capita consumption
10 Cement — Trend in Net Sales
11 Cement — Operating profit margins of companies
12 Cement — Net profit margins of companies
13 Debt- Equity Ratio
14 Return on Capital Employed
15 Gypsum — Domestic prices
16 Lignite — Domestic prices
17 Company-wise limestone cost (Rs/tonne of limestone)
18 Company-wise coal costs (Rs/tonne of cement)
19 Company-wise coal cost (Rs/tonne of coal)
20 Company-wise coal consumption
21 Company-wise power consumption
22 Cement — Statewise sales tax
23 Cement — Customs duty
24 Cement — Excise duty
25 Royalty charges — From 1971 to 2002
26 Royalty charges w.e.f. from August 2007
Industry statistics
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